WASHINGTON — The Trump family’s cryptocurrency venture, World Liberty Financial, appears to have a stronger-than-average chance of obtaining banking services or regulatory approval for its proposed trust bank, according to numerous reports, although the application continues to face political scrutiny and opposition from some consumer and community groups.
World Liberty Financial, the crypto company backed by President Donald Trump and members of his family, filed an application in January to establish a national trust bank that would support issuance and redemption of its USD1 stablecoin and provide digital-asset custody services, according to Reuters. The company said the proposed institution would be structured to comply with the federal regulatory framework for stablecoins established under the GENIUS Act.
The application comes at a time when the Trump administration has taken a more favorable stance toward cryptocurrency and digital-asset businesses than previous administrations, a factor that some analysts say could improve the venture’s prospects for obtaining banking-related approvals.
Reuters reported that World Liberty has sought to position the proposed trust bank as a regulated bridge between traditional banking and digital assets. The company has said it has complied with all disclosure and regulatory requirements associated with the application process.
Criticism From Democrats
However, the proposal has drawn criticism from Democratic lawmakers and consumer advocates who argue the venture raises conflict-of-interest concerns because of the Trump family’s ownership stake and President Trump’s influence over federal regulatory agencies. Reuters reported that lawmakers have requested information from regulators regarding the application and the review process.
According to Reuters, World Liberty spokesman David Wachsman has rejected those concerns, saying the company has followed all regulatory requirements and describing criticism of the application as politically motivated.
$3.3 Billion in Circulation
The company’s growing footprint in the digital-asset industry may also bolster its argument that it has become a significant market participant. Reuters reported that USD1 surpassed $3.3 billion in circulation during its first year and that World Liberty has expanded internationally through initiatives involving cross-border payments, foreign-exchange remittances and overseas partnerships.
At the same time, World Liberty has become one of the most politically controversial businesses in the cryptocurrency sector. Reuters has reported that the venture has generated substantial revenue for the Trump family and continues to attract scrutiny over governance, investor protections and potential conflicts of interest.
Test for Regulators
The Wall Street Journal reported in January that critics viewed the trust-bank application as a major test of whether regulators would approve a banking charter for a company so closely associated with a sitting president and his family. The publication noted that the proposed charter would allow World Liberty to issue and custody its stablecoin through a federally regulated entity.
Industry observers say the broader regulatory environment may work in the company’s favor. The Trump administration has made allegations of “debanking” of crypto firms a priority issue, with federal regulators and the Justice Department examining claims that banks improperly denied services to cryptocurrency companies and other politically sensitive industries. As the CU Daily has reported, federal investigations into alleged debanking practices are ongoing.
Those efforts could create a regulatory climate more receptive to crypto-related banking activities than existed during previous administrations, analysts have said.
Approval Not Guaranteed
Still, approval is far from guaranteed, according to several reports. Community and consumer groups have filed objections with regulators, arguing that granting a charter could expose consumers and the financial system to unnecessary risks. The National Community Reinvestment Coalition said in comments submitted to regulators that the proposed institution would be permitted to hold customer assets and conduct settlement activities without what it characterized as sufficient safeguards.
