World Liberty Trust, a cryptocurrency venture connected to former President Donald Trump, has received preliminary approval for bank status from federal regulators. The decision marks an unprecedented development for a sitting or former president's business venture to gain banking authority.
The Trump-appointed regulator overseeing the application approved the banking license for World Liberty Financial, the crypto company backing the trust. The approval allows the venture to operate with the legal powers of a chartered bank, including accepting deposits and making loans, though it will focus on cryptocurrency-related banking services.
Critics have raised questions about potential conflicts of interest, particularly given Trump's influence over the regulatory appointment process during his presidency. The approval process for banking charters typically involves extensive review of financial soundness, management competence, and compliance capabilities. The crypto industry has sought greater access to traditional banking infrastructure for years, facing resistance from regulators concerned about the volatility and risks associated with digital assets.
World Liberty Financial has positioned itself as a bridge between traditional banking and cryptocurrency markets. The preliminary approval represents a significant step toward full operational status, though the company must still meet additional regulatory requirements before beginning banking operations. The venture joins a small number of crypto-focused firms that have obtained banking charters in recent years.
The decision comes as the cryptocurrency industry continues to seek legitimacy within the traditional financial system. Banking status would allow World Liberty Trust to offer services that pure crypto companies cannot provide, potentially giving it a competitive advantage in the market. The approval process and the Trump family's involvement in the venture have drawn scrutiny from ethics watchdogs and political opponents who question whether the regulatory decision was influenced by political considerations.