The Office of the Comptroller of the Currency, led by a Trump-appointed regulator, has granted a conditional banking license to World Liberty Financial, a cryptocurrency firm with deep financial ties to President Donald Trump and his family. The decision, first reported by Politico, allows the company to hold customer deposits, offer digital asset custody, and access Federal Reserve payment systems.
The license was approved on August 17 by acting Comptroller Mark Thompson, a former community banker whom Trump appointed in 2025. In a statement, Thompson said the charter supports innovation. "We believe this charter will foster responsible growth in the digital asset sector while maintaining safety and soundness," he said.
Regulator's decision
World Liberty Financial launched in 2024 as a crypto lending and trading platform. The company has said it aims to bridge traditional banking and decentralized finance. The banking license gives the firm a regulated status that most crypto competitors lack, allowing it to accept federally insured deposits once it meets all conditions.
The OCC imposes strict requirements on new banks, including minimum capital reserves and anti-money laundering protocols. The license is conditional pending an on-site review and the completion of operational safeguards. A company spokesman declined to comment on the timeline for meeting those conditions.
Conflict of interest concerns
Ethics experts say the approval presents an unusual conflict because the president retains a substantial financial interest in the firm. Claire O'Connor, senior director at the Campaign Legal Center, called the decision "a direct line from political power to personal profit." She noted that no federal statute explicitly bars a president from benefiting from banking decisions, but the appearance of impropriety is unavoidable.
Representative Jasmine Garcia, a Democrat from Texas, said she will introduce legislation to strip the OCC's authority to license any company with ownership interests held by the president or vice president. "This is corruption disguised as financial inclusion," she said in a statement. The White House did not respond to requests for comment.
Implications for Japan
The decision is being watched closely in Tokyo, where regulators have taken a cautious approach to crypto banking. Japan's Financial Services Agency requires digital asset firms to get separate registrations and prohibits banks from directly holding cryptocurrencies on their own accounts.
Kenji Nakamura, a financial regulation professor at Hitotsubashi University, said the U.S. license could pressure Japanese authorities to adapt. "American federal backing for a crypto bank changes the global conversation," Nakamura said. "Japan now faces a choice: maintain strict separation or allow similar experiments to remain competitive."
World Liberty Financial has already signaled plans to enter Asian markets. In a July investor document, the company said it was in preliminary talks with potential partners in Japan and Singapore. The new U.S. banking license may make those negotiations easier, as the firm can now claim federal oversight in its home market.
Reaction from Tokyo
Japan's Financial Services Agency said it is monitoring the OCC's decision but declined to speculate on policy changes. A senior FSA official, who spoke on condition of anonymity, said the agency would review any application from World Liberty Financial under existing law. "Our framework is focused on investor protection," the official said. "A foreign license does not automatically translate into a Japanese one."
Still, some Japanese banks are experimenting with digital assets. Nomura Holdings launched a crypto custody service in 2025. MUFG Bank has been testing a stablecoin pilot. Nakamura said the OCC's move could accelerate these projects. "Japanese banks will ask their regulators for fairness," he said. "If an American president-linked firm can get a charter, they will argue, so should we."
The OCC's decision is likely to face legal challenges. The Campaign Legal Center has indicated it may sue, arguing that the approval violates the Emoluments Clause. But legal scholars note that past rulings have given regulators wide latitude in charter decisions. For now, World Liberty Financial holds a rare status: a crypto firm with a federal banking license and a powerful patron.
