Editor's Note: When crypto capital and political power intertwine on the same regulatory track, the controversy often becomes more penetrating than the technology itself.
The controversy surrounding World Liberty Financial (WLF), the Trump family's crypto company, applying for a U.S. banking license has rapidly evolved from a routine financial approval into a political issue involving conflicts of interest, foreign capital influence, and national security. The $500 million investment by members of the Abu Dhabi royal family, potential AI chip export arrangements, stablecoin business plans, and the president's disclosed tens of millions of dollars in income have transformed this hearing into a stress test of institutional boundaries and regulatory independence, far exceeding the scope of the industry.
The OCC emphasized that it would "process the matter according to procedure," while Democratic lawmakers questioned the transparency and review standards. At a time when stablecoins are increasingly seeking a "bank-like" path, WLF's application is not only about a company's compliance process, but also reflects how the United States is finding a balance between digital financial competition, geopolitical capital games, and political ethics.
The following is the original text:
A U.S. banking regulator declined to disclose specific details of the Trump family's crypto company's application for a U.S. banking license. The company previously received a $500 million investment from a member of the Abu Dhabi royal family.
The head of the Office of the Comptroller of the Currency (OCC), which is responsible for issuing federal banking licenses, refused to disclose details of World Liberty Financial's (WLF) application at a Senate Banking Committee hearing on Thursday, as requested by lawmakers, and denied that President Donald Trump had exerted any influence on the approval process.
Democratic lawmakers are demanding that the OCC clarify whether WLF disclosed in its application documents that it sold a 49% stake to Sheikh Tahmon bin Zayed Al Nahyan, the UAE's national security advisor who also controls a vast business empire.
The aforementioned transaction has further raised questions about whether the UAE received preferential treatment in terms of policy due to its investment in a company controlled by the Trump family, including access to US artificial intelligence chips, and whether there is a risk that the related technology will be transferred to China.
WLF denies that the $500 million investment is related to any chip acquisition arrangements. According to the company's website, Trump is listed as an "honorary co-founder." In its latest financial disclosure covering 2024, Trump declared personal income from WLF of $57.3 million.
At the hearing, Elizabeth Warren, a key figure in the liberal wing of the Democratic Party, challenged OCC Chief Executive Jonathan Gould regarding the WLF's application, arguing that the application posed a clear risk of conflict of interest given the Trump family's shareholding.
WLFI submitted its banking license application in early January through an entity called World Liberty Trust Company. Details of its equity transaction with the UAE (finalized days before the president's inauguration) were disclosed by the media earlier this month.
Warren questioned Gould about whether WLF disclosed in its application that Sheikh Tahmon had become a "major shareholder of the proposed bank." Gould responded that he would not comment on any specific application. Warren further warned that if the license were ultimately approved, it would constitute "one of the most shameful corruption scandals in American history."
In response, Gould stated that the OCC would "review all applications according to established procedures," and sarcastically remarked that the "only political pressure" he felt came from Warren herself.
Democratic Senator Chris Van Hollen further inquired whether the Abu Dhabi Investment Corporation's (MGX) $2 billion investment last year in acquiring a stake in crypto exchage Binance using the WLF stablecoin would be considered by the OCC. Another Democratic member, Andrew King, asked whether the OCC had a strengthened review mechanism for applications involving foreign government officials or potentially affecting national security. Gould stated he would respond in writing later.
WLF responded that Democrats are "politicizing the matter" and smearing a private U.S. company undergoing rigorous regulatory scrutiny with "baseless accusations." The company emphasized that World Liberty Trust Company has submitted all necessary disclosure documents as required by regulations. WLF is one of five companies currently in the OCC queue applying for a national banking license; crypto companies Coinbase and Laser Digital are also among the applicants.
If approved, WLF will be able to issue and hold its own inventory of the USD1 stablecoin. USD1 is a cryptocurrency pegged 1:1 to the US dollar, and currently, custody and issuance services are provided by a third party. According to the disclosure, WLF will not engage in lending activities or accept public deposits in the future.
The proposed management team includes WLF co-founder Zach Witkoff, whose father is current U.S. Middle East envoy and real estate billionaire Steve Witkoff, and Jeffrey Weiner, CEO of Integrity Automotive Holdings, whose automotive dealership group operates in New York, New Jersey, and Connecticut.
Earlier this week, some of the founders' social media accounts were attacked, causing USD1 to briefly become unpegged. WLF later stated that USD1 was "completely secure" and had stabilized.
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