World Liberty Financial Bank Charter Review Proceeds Despite Political Pressure as OCC Maintains Regulatory Independence

WASHINGTON, D.C. — February 2025: The Office of the Comptroller of the Currency has firmly rejected political interference in its review process for World Liberty Financial’s national trust bank charter application, signaling a commitment to regulatory independence amid heightened scrutiny of cryptocurrency banking relationships. Acting Comptroller Jonathan Gould confirmed Friday that the agency will proceed with evaluating WLF’s application under established standards, despite calls from Senator Elizabeth Warren to pause the review until President Donald Trump divests his stake in the crypto platform.

World Liberty Financial Bank Charter Application Advances Despite Political Controversy

The OCC’s decision represents a significant development in cryptocurrency regulation. Furthermore, it demonstrates the agency’s determination to maintain procedural integrity. Acting Comptroller Gould emphasized that no political or personal financial ties would influence the review process. “The OCC charter application process should be, and under my leadership will be, an apolitical and nonpartisan process,” Gould stated in his January 28 response to Senator Warren. He added that WLF’s application would undergo the same rigorous review as any other submission.

World Liberty Financial submitted its application on January 7, seeking to expand its cryptocurrency operations. The charter would enable WLF to issue, custody, and convert its USD1 stablecoin in-house. Currently, the company relies on third-party providers like BitGo for these services. USD1 has become the sixth-largest stablecoin since its March 2025 launch, boasting a $4.2 billion market capitalization. The stablecoin already facilitates cross-border payments, settlement, and treasury operations for numerous institutions.

Cryptocurrency Industry Faces Banking Charter Challenges

National trust banking charters have historically been difficult for cryptocurrency companies to secure. However, the regulatory landscape began shifting in December 2024 when the OCC awarded five conditional approvals. These approvals went to Circle, Ripple, Fidelity Digital Assets, BitGo, and Paxos. This move signaled the currency regulator’s willingness to expand cryptocurrency services into traditional finance. The table below illustrates recent developments in crypto banking charters:

Senator Warren’s concerns centered on President Trump and his sons being listed as World Liberty founders. She argued the platform generated billions in paper wealth for the family. Warren’s January 14 letter requested the OCC pause its review until the President divested his stake. The Massachusetts senator has consistently advocated for stricter separation between political figures and financial regulation.

Regulatory Independence in Politically Charged Environment

Gould’s appointment as Acting Comptroller adds complexity to the situation. President Trump selected Gould for the position in late 2024. However, Gould’s response to Warren demonstrates his commitment to regulatory independence. “The OCC intends to act consistent with this duty rather than your demand,” he wrote, referencing the agency’s statutory obligations. Regulatory experts note this stance aligns with historical OCC precedent, where political appointments haven’t necessarily translated to favorable treatment for connected entities.

The cryptocurrency industry has closely watched this development. Many companies struggle to establish banking relationships due to regulatory uncertainty. A national trust charter would provide WLF significant advantages, including:

• Direct access to Federal Reserve services
• Enhanced credibility with institutional clients
• Reduced reliance on intermediary banks
• Streamlined compliance processes

Industry analysts suggest the OCC’s December approvals created a precedent that makes WLF’s application more likely to succeed. However, the political dimensions add unprecedented scrutiny. Regulatory observers note that Gould’s response carefully navigates this terrain by emphasizing procedural regularity over political considerations.

Stablecoin Market Evolution and Regulatory Response

The USD1 stablecoin’s rapid growth highlights cryptocurrency’s expanding role in global finance. Since launching in March 2025, USD1 has captured significant market share. Its $4.2 billion capitalization places it behind only Tether, USD Coin, and a few other major stablecoins. WLF’s application specifically seeks authority to manage USD1 operations internally rather than through third parties.

This move reflects broader industry trends toward vertical integration. Cryptocurrency companies increasingly seek to control more aspects of their operations. Regulatory approval would position WLF similarly to traditional financial institutions that manage their payment systems. The OCC’s review will likely focus on several key areas:

• Capital adequacy and risk management frameworks
• Anti-money laundering and know-your-customer procedures
• Technology infrastructure and cybersecurity measures
• Consumer protection mechanisms

Market participants await the OCC’s decision with particular interest. Approval could encourage more cryptocurrency firms to pursue banking charters. Conversely, rejection might signal renewed regulatory caution despite December’s conditional approvals. The timeline for decisions remains uncertain, though OCC reviews typically take several months.

Broader Implications for Cryptocurrency Regulation

This situation unfolds against a backdrop of evolving cryptocurrency regulation. Multiple agencies now coordinate their approaches to digital assets. The Securities and Exchange Commission, Commodity Futures Trading Commission, and Treasury Department all play roles in oversight. The OCC’s actions specifically address banking aspects of cryptocurrency operations.

Recent years have seen increased institutional adoption of cryptocurrency services. Major financial institutions now offer crypto custody, trading, and investment products. Regulatory clarity facilitates this adoption by reducing compliance uncertainty. The OCC’s conditional approvals in December represented a milestone in this process. WLF’s application tests whether this opening extends to companies with political connections.

International developments also influence domestic regulation. Other jurisdictions have moved more aggressively to integrate cryptocurrency into their financial systems. The European Union’s Markets in Crypto-Assets regulation took effect in 2024. Asian financial centers like Singapore and Hong Kong have established comprehensive frameworks. U.S. regulators balance innovation promotion with risk management, a complex task in politically sensitive environments.

Conclusion

The OCC’s decision to proceed with the World Liberty Financial bank charter review demonstrates regulatory independence amid political pressure. Acting Comptroller Jonathan Gould has emphasized procedural regularity over external demands. This approach maintains institutional credibility while advancing cryptocurrency integration into traditional finance. The outcome will significantly influence both the stablecoin market and broader crypto banking relationships. As the review continues, market participants will monitor whether established standards truly govern the process, regardless of political connections.

FAQs

Q1: What is the OCC’s role in cryptocurrency banking?
The Office of the Comptroller of the Currency regulates national banks and federal savings associations. It determines which entities qualify for banking charters, including trust charters sought by cryptocurrency companies for specific financial activities.

Q2: Why did Senator Warren want the OCC to pause its review?
Senator Warren requested a pause until President Trump divested his stake in World Liberty Financial. She expressed concern about potential conflicts of interest, given the President’s appointment of the acting comptroller and his family’s financial ties to the company.

Q3: What advantages would a national trust charter give World Liberty Financial?
A charter would allow WLF to directly issue and custody its USD1 stablecoin, access Federal Reserve services, enhance institutional credibility, and reduce reliance on third-party banking partners for core operations.

Q4: How does this situation affect other cryptocurrency companies?
The OCC’s handling of this politically sensitive application signals whether regulatory access depends on procedural fairness or political connections. A fair process would encourage more applications, while perceived favoritism might deter legitimate companies.

Q5: What happens next in the review process?
The OCC will conduct its standard evaluation of WLF’s application, examining capital adequacy, risk management, compliance systems, and operational capabilities. The timeline remains uncertain, but decisions typically follow several months of review and potentially require additional information from the applicant.