Trump’s Crypto Venture Faces Scrutiny: A Banking License in the Balance
The Trump family’s cryptocurrency venture, World Liberty Financial (WLF), is under intense scrutiny as it seeks a national bank charter. A US banking regulator has refused to disclose details surrounding the application, fueling concerns about potential conflicts of interest and national security implications.
The $500 Million Investment and UAE Ties
At the heart of the controversy is a $500 million investment in WLF from Sheikh Tahnoon bin Zayed al-Nahyan, the national security advisor of the United Arab Emirates. This deal, finalized shortly before President Trump’s second inauguration, has raised questions about whether the UAE is seeking favorable treatment in exchange for its financial backing. Concerns extend to potential access to US AI chips and the possibility of those chips being transferred to China.
Congressional Concerns and a Treasury Probe
House Democrats have formally requested a probe from Treasury Secretary Scott Bessent into the matter, citing potential conflicts of interest and national security risks. During a House hearing, Rep. Gregory Meeks labeled Bessent a “flunky” of President Trump and questioned the lack of transparency surrounding the deal. Senator Elizabeth Warren has too voiced strong objections, suggesting the approval of the banking license would represent a “disgraceful corruption scandal.”
What a Bank Charter Would Mean for WLF
A national bank charter would allow WLF to issue and hold its USD1 stablecoin, a cryptocurrency pegged to the value of the US dollar. Currently, a third party manages this function. WLF has stated it would not engage in traditional banking activities like lending or accepting deposits.
Key Players and Leadership
WLF’s proposed senior executives include Zach Witkoff, a co-founder and son of Steve Witkoff, the US special envoy to the Middle East, and Jeffrey Weiner, CEO of Integrity Automotive Holdings. Donald Trump is listed as the company’s “co-founder emeritus” and reported personal income of $57.3 million from WLF in 2024.
Recent Challenges and Security Concerns
WLF recently addressed concerns about the security of its USD1 stablecoin after a cyberattack briefly disrupted its peg to the dollar. The company maintains that the token is “completely safe.”
Other Charter Applicants
WLF is one of five companies currently awaiting a decision on their applications for a national bank charter from the Office of the Comptroller of the Currency (OCC). Coinbase and Laser Digital are also among the applicants.
FAQ
What is a national bank charter? A national bank charter is a license granted by the OCC that allows a company to operate as a federally regulated bank.
Who is Sheikh Tahnoon bin Zayed al-Nahyan? He is the national security advisor of the United Arab Emirates and a key figure in the country’s investment funds.
What is a stablecoin? A stablecoin is a cryptocurrency designed to maintain a stable value, typically pegged to a traditional asset like the US dollar.
What is the OCC’s role in this situation? The OCC is responsible for reviewing and approving applications for national bank charters, including WLF’s application.
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