Senator Warren Pushes for Halt on WLFI-Related Bank Charter Application
U.S. Senator Elizabeth Warren has urged the Office of the Comptroller of the Currency (OCC) to delay reviewing a bank charter application tied to WLFI, a company affiliated with President Donald Trump. Warren cited significant concerns surrounding potential conflicts of interest due to Trump’s financial stakes in the organization.
The OCC is currently evaluating an application by WLFI’s affiliate, World Liberty Trust Co., which seeks approval to become a federally chartered trust bank. An approved charter would grant the company the authority to issue a stablecoin, USD1. However, Warren argues that granting this approval presents unprecedented conflicts of interest.
Concerns Regarding Presidential Influence
In her letter addressed to OCC Chief Jonathan Gould, a Trump appointee, Senator Warren emphasized the magnitude of financial and ethical risks involved. She wrote, “We have never seen financial conflicts or corruption of this magnitude.” Highlighting the failure of previous legislation, including the GENIUS Act, to address these conflicts, she stressed the need for federal regulators to act decisively.
Warren’s concerns revolve around the possibility of the then-president leveraging the role of financial regulators to enhance his company’s profits. “Approving this charter would enable rules that directly influence the profitability of the president’s personal business interests,” she argued.
Senate Banking Committee Contemplates Crypto Legislation
This development unfolds amid preparations by the Senate Banking Committee to review a draft crypto market structure bill. The draft bill, shared earlier in the week, lacks key provisions addressing government ethics, which Democratic senators, including Warren, have pushed for inclusion. The committee is set to discuss potential amendments on Thursday, which could impact the inclusion of ethics-related rules.
Warren’s focus aligns with growing demands for regulatory scrutiny in the evolving digital asset market. According to the senator, delaying the charter application is essential to ensure transparency and accountability within this space.
While the OCC has not yet commented on the matter, the committee’s discussions could have broad implications for how conflicts of interest and corporate influence are addressed in future regulatory frameworks.
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