Dems target Donald Trump’s crypto business with legislation blocking presidents and other senior government officials from owning or controlling banks
Democratic lawmakers led by Sen. Elizabeth Warren have introduced legislation targeting potential conflicts of interest between public office and private banking after federal regulators conditionally approved a bank charter application linked to President Donald Trump’s family cryptocurrency venture. The bill came a day after the Office of the Comptroller of the Currency (OCC) granted preliminary approval to World Liberty Trust Company’s application for a national trust bank charter. Warren argued that the move creates an unprecedented conflict of interest, while World Liberty Financial says the proposed bank would operate under permanent federal oversight.
Elizabeth Warren calls approval unprecedented: ‘The most brazen act of self-dealing’
Warren, the top Democrat on the Senate Banking Committee, announced the legislation on Saturday, August 15 — one day after the OCC’s decision. The proposed Ending Presidential Corruption in Banking Act would restrict the Federal Reserve, OCC and Federal Deposit Insurance Corporation from approving certain banking applications involving presidents, vice presidents, members of Congress, specified executive officials and immediate family members of presidents or vice presidents.
“President Trump is now the first president in history to approve, operate and supervise his own bank,” Warren said in a statement announcing the bill. “This is the most brazen act of self-dealing our financial system has ever seen, and Congress cannot allow it to stand.”
Elizabeth Warren’s bill targets bank ownership and control
Under the bill, regulators could not approve an application if a covered individual “owns, controls or has the power to vote more than 10 percent of any class of voting securities of the bank,” serves as a senior executive or otherwise exercises controlling influence. The legislation would also require regulators to review banking approvals issued after January 20, 2025, potentially terminating charters, licenses, master accounts or deposit insurance where covered individuals controlled an institution when approval was granted. It would separately prohibit a president, vice president or either official’s spouse or children from owning or controlling a bank.
Donald Trump’s cryptocurrency venture yields billions
The scrutiny comes as Trump’s administration promotes cryptocurrency and stablecoins. Reuters has reported that USD1 has reached roughly $4 billion in market value, with the Trump family earning about $50 million from the stablecoin through June and World Liberty generating more than $1.4 billion for Trump and his family by April.
Trump has denied managing the family’s businesses, saying his children run them. He also told CNBC in July that his children face conflict-of-interest allegations because “almost anything they do” can generate such claims while he is president.
World Liberty Financial defends the charter
World Liberty Financial rejected Warren’s characterization of the arrangement. “Critics are missing the point: World Liberty Financial is running towards regulation and continuous oversight, not away from it,” spokesperson David Wachsman told Newsweek.
“World Liberty Trust Company’s national charter will ensure robust and permanent regulatory supervision from the OCC, a federal banking regulator, that will outlast the Trump administration,” Wachsman continued. “For many years to come, WLTC will receive regular examinations of its books, risk management and internal controls.”
He further said federal anti-money-laundering and consumer-protection laws would also apply. “The OCC’s preliminary approval is great news for consumer and investor protection advocates and for the American financial services industry,” he said.
OCC says approval is conditional
The OCC recently announced that it had conditionally approved World Liberty Trust Company’s national trust charter application, which was submitted in January. Final approval has not yet been granted. If authorized, the institution could manage and hold customer assets, settle payments and support the issuance and custody of World Liberty’s USD1 stablecoin. Trust banks generally do not accept conventional deposits or make loans.
The OCC said career staff reviewed the application and that Comptroller Jonathan Gould and agency employees “acted consistently with their statutory duties and ethical obligations.” The approval includes capital, governance and operational conditions. It also notes that a Trump-affiliated entity agreed not to seek board seats, influence management or otherwise control the bank, while ownership of 10% or more would be held solely for investment purposes.