Senator Demands Banking Regulator Block Trump-Linked Crypto Charter
Washington’s crypto cold war just got hotter—a senior senator is pressing banking watchdogs to slam the door on a special charter tied to the former president’s orbit.
The Regulatory Standoff
Forget backroom deals. This is a public, gloves-off push to keep crypto outfits from getting a federally blessed banking pass. The argument? That letting digital-asset firms operate with a formal charter risks blowing a hole in consumer safeguards and stability protocols. It’s a preemptive strike against legitimizing what critics call the ‘wild west’ of finance.
Political Crossfire
The Trump link adds jet fuel to the fight. It frames the charter not as dry policy, but as a political trophy—a move that could reshape crypto’s access to the mainstream financial system depending on who holds power. Opponents see it as a dangerous shortcut; supporters call it necessary innovation. Either way, it puts regulators squarely in the political spotlight.
The real question isn’t about technology—it’s about who gets to write the rules for the next generation of money. And in Washington, that’s a fight that’s never just about the numbers, unless you’re counting lobbyists. The whole debate feels like another case of traditional finance gatekeepers trying to charge a toll for a bridge they didn’t build.
Warren Raises Conflict Concerns With The OCC
US Senator Elizabeth Warren sent a formal letter to Comptroller Jonathan Gould asking the Office of the Comptroller of the Currency (OCC) to pause its review of the application until TRUMP divests and fully eliminates financial links to World Liberty Financial, reports say.
The senator wrote that approving a federally chartered bank while the sitting President retains ties to the business could create serious government ethics problems.
The Company’s Plan And Its Scale
World Liberty Financial wants a national trust bank that WOULD offer stablecoin issuance, custody and conversion services.
The stablecoin USD1 has reached more than $3.3 billion in circulation since its launch, a figure regulators and lawmakers are watching closely as the firm seeks federal oversight.
The MOVE would place certain crypto activities under the same kind of supervision given to traditional trust banks.
Pushback And Political RiskReports note that Warren’s demand is rooted in a concern about the public’s trust in regulators. She asked the OCC for a written reply by January 20, highlighting the urgency of the matter for lawmakers who oversee banking rules.
Other Democrats have signaled similar worries about the optics and legal questions that could follow if a regulator reviews a bank linked to the incumbent President.
Several crypto firms have recently sought national charters or conditional approvals, prompting a broader debate over how stablecoins should be regulated. Supporters of bank charters say federal oversight can protect customers and bring clarity.
Critics argue that when a highly political figure is connected to an applicant, extra caution is required so that regulatory independence is preserved. Reporting on this case has focused on both the bank application and the potential effect on trust in federal agencies.
Other Developments Around The FirmWorld Liberty and related affiliates have been active on multiple fronts, including new product launches and international talks. Some outlets noted a newly announced partnership with external parties to explore broader payment uses for USD1, an effort that underlines how quickly the stablecoin has spread.
Featured image from Inc/Getty Images, chart from TradingView
