Forty-one House Democrats have urged U.S. Treasury Secretary Scott Bessent to scrutinize a bank charter application from the Trump family's crypto firm, World Liberty Financial. Lawmakers warn that approving the charter could pose significant national security risks and expose the American banking system to foreign influence.
The Democrats cited recent reports indicating World Liberty Financial sold a substantial stake to a United Arab Emirates royal. This development is particularly concerning as it followed a lucrative AI chips deal with the White House secured by the UAE royal.
World Liberty Financial is seeking a national trust bank charter to facilitate its stablecoin operations in the U.S. The application requires approval from the Office of the Comptroller of the Currency (OCC), a Treasury bureau. Such a charter would allow the company to streamline transactions related to its stablecoin, USD1.
In a letter coordinated by Rep. Gregory Meeks (D-NY), the lawmakers stated, "This is no longer just a debate about crypto chartering theory. It is about foreign ownership, national security, regulatory integrity, and whether our bank-chartering process is resilient to political and geopolitical pressure."
They have requested detailed information from Secretary Bessent regarding safeguards against foreign governments leveraging the bank-chartering process and the extent of White House influence on OCC decisions. Bessent previously testified that the OCC operates independently of the Treasury Department.
The correspondence was signed by a bipartisan group of House members, including crypto skeptics and advocates like Reps. Ritchie Torres (D-NY) and Sam Liccardo (D-CA).
The letter's release coincided with a high-profile conference hosted by World Liberty Financial at Mar-a-Lago, attended by members of the Trump family, industry leaders, and figures like Binance founder Changpeng Zhao.