In a groundbreaking move, US Senator Elizabeth Warren has issued a formal call to delay the review of the national trust bank charter application submitted by World Liberty Financial (WLFI) due to significant conflict of interest concerns. The application, filed through WLFI’s subsidiary, WLTC Holdings LLC, seeks to establish the World Liberty Trust Company (WLTC), a national entity specializing in stablecoin operations such as issuance, redemption, and custody services.
Conflict of Interest: Senator Warren’s Concerns
Senator Warren has highlighted that the Trump family’s involvement in WLFI presents unprecedented ethical challenges. In a letter directed to the Office of the Comptroller of the Currency (OCC), Warren points out that direct ties between President Trump and WLFI create a scenario where regulatory decisions could directly impact the President’s financial interests. The situation is further compounded by the GENIUS Act of 2025, which designates the OCC as the primary regulatory body for stablecoin issuers, providing it both operational oversight and compliance enforcement authority.
“If the application is approved, this would mark the first time in history where a sitting President oversees regulatory policies directly benefiting their financial ventures,” Warren wrote.
WLFI’s High-Stakes Application
According to reports, WLFI’s ongoing application has escalated controversy within the financial and cryptocurrency sectors. Listed founders of WLFI include Eric, Donald Trump Jr., and Barron Trump, with President Trump retaining an honorary role as Co-Founder Emeritus. Recent revelations suggest that the Trump family has potentially earned over $1 billion from crypto and blockchain-related endeavors, significantly raising the stakes tied to this charter.
Open Letter to the OCC
Warren has previously raised similar issues regarding President Trump’s financial entanglements and their impact on regulatory impartiality. However, at that time, the OCC declined to engage, citing the situation as hypothetical. With WLFI’s formal application now under review, Warren has reignited her concerns and urged the OCC to delay its decision-making process until the President and his family fully divest their stakes in the company.
Broader Implications for Crypto Regulation
The senator’s move is a reflection of rising skepticism within the US financial landscape regarding the integration of cryptocurrency firms into federally regulated banking structures. Key groups such as the Independent Community Bankers of America (ICBA) and the American Bankers Association (ABA) have echoed similar apprehensions about applications from firms like Ripple, Circle, and BitGo.
This probing aligns with Warren’s historically critical stance on cryptocurrency, which previously included investigating the Trump-backed meme coins, TRUMP and MELANIA, as part of a broader crackdown on potential misconduct within the industry.
What This Means for the Crypto Landscape
The ongoing debate surrounding WLFI and its charter application could set a precedent for future cryptocurrency firms seeking national trust banking privileges. The scrutiny highlights the need for greater transparency and conflict mitigation measures within this evolving industry.
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As this story continues to unfold, lifestyle and investment enthusiasts alike should stay informed about the regulatory and ethical challenges shaping the future of crypto banking.
