The battle over crypto regulation in Washington is increasingly shifting from policy details to questions of institutional independence, and a new dispute involving World Liberty Financial has brought that tension into sharp focus.
At issue is a pending application for a national trust bank charter by World Liberty Financial, a move that would significantly expand the firm’s role within the U.S. financial system. While the application itself is still under review, the political debate around it has already intensified, drawing in senior lawmakers and federal regulators.
Key Takeaways
OCC refuses to pause World Liberty Financial’s bank charter review
Warren cites Trump family ties as a conflict concern
Charter would let WLF manage its USD1 stablecoin in-house
The Office of the Comptroller of the Currency has made it clear that it does not intend to slow or suspend its evaluation, despite pressure from Elizabeth Warren. Warren had urged the agency to pause the process, arguing that the application raises conflict-of-interest concerns due to ties between World Liberty Financial and Donald Trump.
Regulators Push Back on Political Interference
In its response, the OCC emphasized that bank charter decisions must be insulated from political considerations. The agency stated that applications are reviewed according to established regulatory standards, not based on ownership optics or external demands. Officials underscored that the charter process is designed to be apolitical and nonpartisan, regardless of the applicants involved.
According to the OCC, World Liberty Financial’s proposal will undergo the same level of scrutiny applied to any other trust bank application. That includes a detailed assessment of governance, risk management, compliance systems, and operational readiness. Regulators stressed that while the review will be thorough, it will not be delayed or altered due to political affiliations or public controversy.
Why the Charter Matters for Crypto
For World Liberty Financial, the charter is more than symbolic. Approval would allow the firm to directly issue, custody, and convert its USD1 stablecoin within its own regulated structure. At present, parts of those functions rely on third-party service providers such as BitGo, which adds operational complexity and external dependencies.
By securing a national trust charter, the company would gain greater control over infrastructure, compliance, and settlement processes. That shift would place it closer to traditional financial institutions while still operating within the crypto-native ecosystem.
USD1’s Rapid Growth Raises the Stakes
The regulatory debate is unfolding as USD1 continues to scale rapidly. Since launching in 2025, the dollar-pegged stablecoin has gained traction in cross-border payments, settlement workflows, and corporate treasury use cases. Its market capitalization has climbed to around $4.2 billion, making it one of the largest stablecoins currently in circulation.
That size has drawn attention from policymakers, who increasingly view stablecoins as systemically relevant financial instruments rather than niche crypto products. As a result, the structure under which major stablecoin issuers operate is becoming a central regulatory concern.
A Signal to the Broader Market
Beyond World Liberty Financial itself, the OCC’s stance carries broader implications for the crypto industry. By refusing to pause the review, regulators are signaling that politically connected firms will neither receive preferential treatment nor face automatic obstruction.
The outcome of the application remains uncertain, but the message from regulators is already clear: charter decisions will be based on regulatory merit alone. As more crypto firms seek deeper integration with the U.S. banking system, this case may serve as a reference point for how political controversy intersects – or fails to intersect – with financial oversight.
