Forty-one House Democrats have voiced significant concerns regarding the potential approval of a banking charter for World Liberty Financial, a cryptocurrency company linked to the Trump family. In a letter addressed to U.S. Treasury Secretary Scott Bessent, the lawmakers express their belief that such a move could jeopardize the integrity of the American banking system and its autonomy from foreign influences.
Their letter, sent on Thursday, references recent news indicating that World Liberty Financial sold nearly half of its equity to a royal figure from the United Arab Emirates shortly before this individual secured a lucrative deal involving artificial intelligence chips with the White House. Aiming to expedite its operations related to stablecoins, World Liberty seeks a national trust bank charter. Approval for this charter lies with the Office of the Comptroller of the Currency (OCC), a bureau within the Treasury Department, and it would significantly ease the transaction processes associated with its stablecoin, USD1.
“This is no longer just a debate about crypto chartering theory,” the letter states. “It is about foreign ownership, national security, regulatory integrity, and whether our bank-chartering process is resilient to political and geopolitical pressure.” The Democrats are calling for transparency regarding the measures in place at the Treasury to prevent foreign governments from exploiting the bank-chartering process for influence over the U.S. financial system. They are also looking to understand the extent of the White House’s involvement in the OCC’s decision-making regarding bank charter applications.
During recent congressional testimony, Bessent asserted that the OCC operates independently from the Treasury Department, which led him to refrain from addressing specific questions about World Liberty’s bank charter application. The letter additionally urges him to clarify whether any formal or informal ties exist between the Treasury Department and the bank-chartering process, with a request for a response within a week.
The letter garnered signatures from a mix of lawmakers, including both crypto skeptics and industry supporters, such as Representatives Ritchie Torres and Sam Liccardo. This correspondence follows an extravagant event hosted by World Liberty Financial at Mar-a-Lago, where members of the Trump family, celebrity guests like rapper Nicki Minaj, and leaders from prominent financial institutions, including Goldman Sachs and Coinbase, were in attendance. Notably, Changpeng Zhao, the founder of Binance, recently pardoned by former President Trump, was also present at the conference.
