Don't let Trump profit from himself? Lawmakers call for a temporary halt to WLFI's banking license review until Trump cuts ties with crypto interests

Warren pressures regulators to temporarily halt Trump family crypto platform’s bank license application, questioning significant conflicts of interest, pointing to gaps in stablecoin regulation and political ethics, amid ongoing legislative controversy.

Democratic Senator Elizabeth Warren took action on 1/13, urging regulatory agencies to suspend review of the bank license application for the crypto platform World Liberty Financial ($WLFI) until Trump and the company still have financial ties. She bluntly stated that such a level of financial conflict of interest is unprecedented in U.S. history and named the regulatory officials responsible for review, fearing they may be unable to remain neutral under Trump’s influence.

WLFI applies for a bank license to build a one-stop stablecoin infrastructure

Subsidiary WLTC Holdings of World Liberty Financial has officially submitted an application to the Office of the Comptroller of the Currency (OCC) to obtain a national trust bank license. If approved, WLFI will be able to independently handle the issuance, custody, and exchange of $USD1 , no longer relying on third-party infrastructure providers like BitGo.

Among the co-founders of World Liberty Financial are U.S. President Trump and his three sons—Eric Trump, Barron Trump, and Donald Trump Jr. The platform has rapidly expanded recently, accumulating billions of dollars in paper wealth for the Trump family, which has also sparked significant public concern over conflicts of interest.

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Trump WLF applies for U.S. banking license! If approved, will independently issue, custody, and convert USD1 stablecoin

Warren sends letter to pressure regulators, requesting a temporary review halt

On 1/3, Democratic Senator Warren sent a letter to OCC Director Jonathan Gould, requesting that regulators not review the bank license application until Trump and his family fully sever their financial ties with World Liberty Financial. Warren stated in the letter:

“As long as Trump or his family still have financial relationships with this company, the application should not be reviewed.”

She further described this situation as unprecedented in U.S. history, constituting a severe financial conflict of interest and corruption risk. Warren also criticized that Congress, when passing the GENUIS Act stablecoin legislation, did not address potential conflicts of interest involving political figures in the crypto industry. Therefore, the Senate now has a greater responsibility to confront these controversies when discussing the crypto market structure bill.

Warren questions OCC Director’s neutrality, doubts independence

In her letter, Warren also expressed strong distrust toward Gould, stating she has no confidence that Gould can fairly review World Liberty Financial’s application according to legal standards.

She pointed out that Gould was previously asked how he would ensure Trump would not influence OCC’s decisions but did not give a clear answer. Instead, he would serve as both the “rule-maker” and the “judge,” responsible for setting regulations that could directly impact WLFI’s profitability, while also overseeing enforcement—targets that include WLFI and its competitors.

Given Trump’s financial ties to the company, Warren naturally questions whether Gould can truly maintain independence and neutrality in such a power structure. Warren further bluntly stated that Gould is an official serving the president, and warned that if this case proceeds as usual, it would be the first time in history that a U.S. president is effectively supervising a financial company they own.

Market structure draft lacks ethics clauses, still under negotiation

Currently, the draft of the Senate Banking Committee’s market structure bill, the “Clarity Act,” does not include the ethics or conflict of interest provisions demanded by Democrats. However, some lawmakers argue that the bill should incorporate clear regulations to prevent political conflicts of interest. Additionally, relevant parties note that before the “Clarity Act” is formally advanced, new clauses could still be added through negotiations and amendments.

• This article is reprinted with permission from: 《Chain News》
• Original title: 《Democrat Warren Calls for Temporary Halt on WLFI Bank License Review Until Trump Cuts Crypto Ties》
• Original author: Louis Lin