A senior US senator is urging banking regulators to halt the review of a crypto company’s banking charter, citing unresolved conflicts linked to President Trump.
Summary
- Senator Elizabeth Warren called on the OCC to halt its review of the WLFI bank charter application.
- She cited unresolved conflicts of interest related to President Trump’s financial involvement.
- The request comes amid an ongoing debate over legislation governing the structure of the crypto market.
A dispute over crypto regulation and presidential business ties is now moving directly into the banking approval process.
On January 13, US Senator Elizabeth Warren spoke wrote for the Office of the Comptroller of the Monet to halt review of a national bank charter application linked to World Liberty Financial (WLFI), citing unresolved conflicts of interest involving President Donald Trump.
Warren Pressures OCC Over Revise of WLFI Banking Charters
Warren’s letter to OCC Comptroller Jonathan Gould called for a delay in review of the application filed by WLTC Holdings LLC, an entity affiliated with WLFI. The crypto company was co-founded by Trump and includes financial involvement from members of his family.
In her letter, Warren argued that approving the charter while Trump maintains financial ties to the company would put the OCC in an unprecedented position. She warned that the agency could ultimately regulate, monitor and shape the profitability of a company directly linked to the sitting president.
According to Warren, the situation goes beyond standard ethical issues. She said the head of the OCC, as a presidential candidate serving at the president’s discretion, would effectively oversee a company tied to the president’s own financial interests.
That dynamic, she wrote, threatens to undermine confidence in both the regulator and the banking system more broadly.
The application would allow WLFI’s trust banking entity to operate within a federal framework, potentially enabling activities such as issuing and custody of its USD1 stablecoin. Warren noted that approval could bring regulatory benefits to the company at a time when Congress has yet to resolve key questions surrounding crypto market structure.
Linked to a broader debate about crypto legislation
Warren tied her request to ongoing legislative efforts, arguing that current draft crypto market structure bills do not address conflicts of interest related to presidential involvement with digital asset companies. She also pointed to the recently passed GENIUS Act, saying it could not solve these problems.
In the letter, Warren asked the OCC to pause the review until Trump fully withdraws from WLFI and eliminates all related financial conflicts. She requested a written commitment from the comptroller by January 20 before any further action would be taken on the application.
The OCC has not publicly responded to the letter. The agency recently granted conditional approvals to other crypto-related banking entities, but Warren warned that continuing WLFI application under current conditions could erode confidence in federal banking supervision.
As lawmakers continue to debate how the U.S. banking law should regulate cryptocurrency companies, the issue is expected to come up again during upcoming committee increases.
#Warren #urges #OCC #pause #review #WLFI #banking #charters