Trump Family Seeks Bank Charter in Unprecedented Conflict-of-Interest Test

The family of U.S. President Donald Trump is moving to establish a bank with the approval of financial regulators. If successful, it would mark the first time in U.S. history that a sitting president's children have founded a bank while he is in office. But the move is fueling growing controversy over conflicts of interest and the potential expansion of political influence.

Bloomberg reported on the 23rd that World Liberty Financial, a decentralized finance (DeFi) platform in which the Trump family holds a stake, is among firms with a strong chance of entering banking through the Office of the Comptroller of the Currency (OCC), alongside stablecoin issuer Circle, consumer lender Nu Holdings and cryptocurrency exchange Coinbase Global. World Liberty Financial said that after receiving conditional approval from the OCC on the 15th, it aims to expand use of its dollar-based stablecoin, USD1. Financial research firm Morningstar said World Liberty Financial must pass a final OCC examination after the conditional approval, and that it will need to complete capital funding, build internal control systems and have its reserve management framework verified before receiving final approval.

Trump holds a 38% stake in World Liberty Financial through DT Marks DeFi, a Trump family entity in which he owns a 70% interest. His three sons are co-founders of World Liberty, and Trump is listed as an "honorary co-founder." Aryam Investment, an investor tied to the Abu Dhabi royal family, is a financial investor holding 49%, and the remaining stake is held by the family of Steve Witkoff, the president's Middle East envoy.

The Trump family is seeking to establish a bank because having a bank to hold the assets backing its stablecoin would cut costs and allow the business to grow further. World Liberty Financial would be able to offer cryptocurrency-related services through its own bank. It could also add stability to the stablecoin and, in times of crisis, open a path to cheap funding or a government bailout.

A Charter From an Agency Whose Chief the President Appointed — Eric Trump's Bank

The controversy has grown because of how sharply the agency has lowered the bar for approval. Analysts say it has become easier to obtain a bank charter in the U.S. than at any time in 20 years since the start of Trump's second administration. According to OCC data, 22 bank charter applications were approved in the first 19 months of Trump's second term — more than the combined total granted over the preceding five years. Since early last year, about 40 firms have applied for new bank charters, a figure comparable to the total for the preceding 13 years. Charter reviews once took anywhere from several months to several years, but under Comptroller Gould the OCC delivers an answer within 120 days. Jonathan Gould, whom Trump nominated as OCC Comptroller, told Congress in June that "the OCC is open for business again."

Critics have sharply denounced World Liberty Financial's pursuit of a bank charter as "brazen self-dealing." They argue that having the president in a position to appoint the head of the regulator while his family is deeply involved in the industry it oversees is an unprecedented conflict of interest.

Democratic lawmakers worry that USD1 could become a channel for currying favor with the president. They say the Trump family's bank could serve as a conduit through which companies friendly to the Trump administration, or foreign governments, legally funnel money. They argue in particular that it is likely to create an incentive to seek political influence by offering depositors a financial link to the White House.

In fact, Trump issued an executive order in February 2025 requiring new financial regulations to undergo White House review before their release. Maxine Waters, the ranking Democrat on the House Financial Services Committee, protested that the president would see regulatory changes first and could therefore move ahead of them in line with his personal interests.

Aaron Klein, a senior fellow at the Brookings Institution, said the real concern is "the illusion that stablecoins carry a government guarantee." Unlike bank deposits, stablecoins are not covered by deposit insurance. Todd Baker, a senior fellow at Columbia University's Richman Center, said that while some of the easing was required by law, the OCC is overstepping its bounds.

Baker cited the revision of trust charter rules as the clearest example of the OCC pushing into new territory. Trusts were traditionally barred from taking deposits or making loans, but that principle could change under Comptroller Gould. The conditional approval the Trump family received is also a trust charter.

In response, World Liberty said it must meet several conditions for final approval and that it has set up a firewall to prevent the Trump family from being directly involved in running the bank. David Waxman, a World Liberty Financial spokesman, said, "World Liberty Financial is not evading regulation but embracing it." He explained that obtaining a national charter would subject the company to ongoing federal oversight by the OCC beyond the Trump administration's term, including periodic examinations and strict anti-money-laundering and consumer-protection requirements.

As part of the approval process, three World Liberty investors — including Trump's son Eric Trump and a businessman with ties to the Abu Dhabi royal family — signed a "passivity agreement" limiting their influence over the bank's management. The OCC said career civil servants reviewed the application.

Anna Kelly, a White House spokeswoman, also said there is "no conflict of interest." In its conditional approval letter, the OCC acknowledged that concerns had been raised about conflicts of interest between the bank and Trump and his family, but said "the Comptroller and staff acted consistent with their legal obligations and ethical responsibilities." To win final approval, World Liberty must meet basic governance requirements, including appointing an external auditor and maintaining a certain level of capital.