Original title: US regulator scrutinised over bank licence sought by Trump crypto venture
Original authors: Martin Arnold and George Steer, Financial Times
Translated by: Peggy, BlockBeats
Editor's note: When crypto capital intersects with political power on the same regulatory track, controversies often penetrate deeper than the technology itself.
The controversy surrounding the Trump family's crypto business World Liberty Financial (WLF) applying for a US bank license has quickly evolved from a routine financial approval into a political issue involving conflicts of interest, foreign capital influence, and national security. A $500 million investment from a member of the Abu Dhabi royal family, potential AI chip export arrangements, stablecoin business layouts, and the tens of millions of dollars in income disclosed by the president himself have turned this hearing into a pressure test for institutional boundaries and regulatory independence, far exceeding industry concerns.
The OCC emphasized that it would "process according to procedures," while Democratic lawmakers questioned transparency and review standards. In an era where stablecoins are increasingly seeking a "bank-like" path, WLF's application is not only about the compliance process of a single business but also reflects how the US seeks to balance digital financial competition, geopolitical capital games, and political ethics.
The following is the original text:
On Thursday, Jonathan Gould was questioned by the Senate Banking Committee regarding the Trump family's crypto business seeking a bank license.
An official from US banking regulation declined to disclose specific information regarding the Trump family's crypto business applying for a US bank license. The company previously received a $500 million investment from a member of the royal family in Abu Dhabi.
The head of the Office of the Comptroller of the Currency (OCC), responsible for issuing federal bank licenses, refused to disclose details of the World Liberty Financial (WLF) application during a Senate Banking Committee hearing on Thursday and denied that President Donald Trump had exerted any influence on the approval process.
Democratic lawmakers demanded clarification from the OCC on whether WLF had disclosed in its application documents the sale of 49% equity to Sheikh Tahnoon bin Zayed Al Nahyan, the UAE's national security advisor who controls a vast business empire.
This transaction further raised external questions about whether the UAE gained "preferential treatment" in policy due to its investment in the Trump family-owned enterprise, including being allowed to acquire American AI chips, and whether there is a risk of related technology being transferred to China.
WLF denied that the $500 million investment was related to any chip acquisition arrangements. According to the company's official website, Trump is listed as an "honorary co-founder." In its latest financial disclosure covering the year 2024, Trump reported personal income of $57.3 million from WLF.
Core Democratic progressive Elizabeth Warren confronted OCC head Jonathan Gould during the hearing, stating that there is a clear risk of conflicts of interest in the application against the backdrop of Trump family ownership.
WLFI submitted its bank license application earlier this January through an entity called World Liberty Trust Company. The details of its equity transaction with the UAE, finalized just days before the president's inauguration, were disclosed by the media earlier this month.
Warren questioned Gould whether WLF had disclosed that Sheikh Tahnoon had become "the major shareholder of the proposed bank." Gould responded that he would not comment on any specific application. Warren further warned that if the license were ultimately approved, it would constitute "one of the most shameful corruption scandals in American history."
In response, Gould stated that the OCC would "review all applications according to established procedures" and sarcastically remarked that the "only political pressure" he felt came from Warren herself.
Democratic Senator Chris Van Hollen also pressed whether the Abu Dhabi investment firm MGX's $2 billion investment last year, which involved using WLF stablecoins to participate in the acquisition of shares in the crypto exchange Binance, would be included in the OCC's approval considerations. Another Democratic member, Andrew Kim, inquired whether the OCC had established enhanced review mechanisms for applications involving high-ranking foreign officials that could affect national security. Gould stated he would respond in writing later.
WLF responded by stating that Democrats were "politicizing the issue" and using "unfounded accusations" to smear a US private enterprise undergoing stringent regulatory scrutiny. The company emphasized that World Liberty Trust Company had submitted all necessary disclosure documents according to regulatory requirements. Currently, five companies are queued at the OCC to apply for national bank licenses, among them WLF; crypto companies Coinbase and Laser Digital are also included in the applications.
If approved, WLF would be able to issue and hold its USD1 stablecoin inventory itself. USD1 is a cryptocurrency pegged 1:1 to the US dollar, with related custodial and issuance services currently provided by third parties. According to disclosures, WLF does not plan to engage in lending or accepting public deposits in the future.
The proposed management team includes WLF co-founder Zach Wietekov, whose father is the current US special envoy for Middle East affairs and real estate billionaire Steve Wietekov, as well as Integrity Automotive Holdings CEO Jeffrey Weiner. The automotive dealership group led by the latter operates in New York, New Jersey, and Connecticut.
Earlier this week, some founders’ social media accounts were attacked, causing a brief deviation of USD1 from its peg. WLF subsequently stated that USD1 was "completely secure" and had stabilized.
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