World Liberty Financial Receives Conditional Bank Charter

The Office of the Comptroller of the Currency (OCC) has granted preliminary conditional approval to World Liberty Trust Company, a national trust bank subsidiary of World Liberty Financial (WLF), a project 38% owned by a Trump-linked entity [1]. The move allows the firm to bring the issuance and reserve management of its USD1 stablecoin—which currently backs approximately $4 billion in circulating tokens—under direct OCC supervision [1].

Bank Charter and Regulatory Shifts

The approval, dated August 14, enables the new entity to manage USD1 issuance and custody, tasks previously outsourced to third-party provider BitGo [1]. While the charter grants the firm a federal regulatory framework, it explicitly prohibits the bank from accepting retail customer deposits, accessing a Federal Reserve master account, or providing FDIC insurance coverage [1]. The bank will be headquartered in Bay Harbor Islands, Florida, and managed by a five-member board including executives with ties to the Witkoff Group and former FINRA board members [1].

The OCC’s decision coincides with a broader shift in federal reporting requirements. The Treasury’s Financial Crimes Enforcement Network (FinCEN) recently announced it would permanently remove the requirement for U.S. persons to report beneficial ownership information under the Corporate Transparency Act, while also deleting previously reported data from its database [1]. These developments have drawn sharp criticism from Senator Elizabeth Warren, who introduced the Ending Presidential Corruption in Banking Act to bar federal agencies from issuing licenses to entities controlled by the president or their immediate family [1].

SEC and CFTC Policy Outlook

Regulatory activity remains in flux as the SEC abruptly cancelled a planned "Reg Crypto" meeting last week, citing an "unforeseen scheduling issue" [1]. The meeting was expected to address a proposed "innovation exemption" for tokenizing equities and shifting toward 24/7 blockchain-based stock trading [1]. Sources indicate that White House concerns regarding the timing of this policy—ahead of a September 15 cloture vote on the CLARITY Act—may have influenced the cancellation [1].

Meanwhile, the White House is preparing to host an event on Wednesday (19) featuring President Donald Trump and top executives from the cryptocurrency and prediction market sectors [1]. This meeting precedes the inaugural session of the CFTC’s Innovation Committee, which will focus on the regulatory evolution of crypto and the future of event contracts [1].

What to watch

• September 15 Cloture Vote: Monitor the Senate’s progress on the CLARITY Act, which remains a central point of contention for SEC digital asset policy [1].
• Legislative Response: Track the progress of the Ending Presidential Corruption in Banking Act, though analysts note it faces significant hurdles to passage in the current Congress [1].
• USD1 Operations: Observe whether the transition of USD1 issuance to the new national trust bank structure impacts the stablecoin’s circulating supply or reserve management transparency [1].

The granting of the charter underscores the deepening intersection of federal oversight and Trump-linked digital asset projects, even as lawmakers remain divided over the potential for conflicts of interest [1]. Whether the new bank structure will satisfy broader market demands for transparency remains an open question as the administration prepares for further industry engagement [1].