Trump's World LibertyFi Charter Puts CLARITY Act on Edge

OCC Greenlights World Liberty Trust Company

The Office of the Comptroller of the Currency (OCC) granted preliminary conditional approval on August 14 for World Liberty Trust Company, National Association to operate as a national trust bank. The entity is linked to World Liberty Financial, a cryptocurrency platform in which an affiliate of President Donald Trump and certain family members holds a reported 38% ownership stake.

Unlike traditional banks, this charter does not permit taking federally insured deposits or making loans. Instead, it authorizes fiduciary and related trust activities, with primary operations centered on the issuance and redemption of USD1, a dollar-pegged stablecoin. USD1 currently carries a market capitalisation of $4 billion and ranks as the fourth-largest stablecoin after Tether and USDC.

The OCC has granted preliminary conditional approval only. Final approval will not be granted until all preopening requirements are met. Among the conditions, World Liberty Trust must maintain a minimum of $20 million in tier 1 capital before commencing operations, designate a qualified internal audit manager, and notify the regulator of any major business plan changes.

A Federal Stamp That Complicates the CLARITY Act

The timing of the approval lands squarely in the middle of an already fractious Senate debate. The CLARITY Act is a digital asset market structure bill that passed the House of Representatives in July 2025 but has stalled in the Senate, held up by an unresolved ethics provision blocking the bipartisan votes needed for passage.

Senate Democrats are demanding stronger conflict-of-interest language covering top government officials, including the president and members of Congress. Prediction market odds for the bill becoming law in 2026 fell to between 33 and 37 percent as of late July, down sharply from above 80 percent in February. The Senate set the bill aside ahead of its August recess without a scheduled floor vote.

Senators Thom Tillis, a Republican, and Ruben Gallego, a Democrat, took on the task of brokering a compromise when it became clear that the White House-approved ethics section was not going to satisfy most Democrats. Critics argue the current draft does not go far enough. A draft ethics provision circulated in late July would sunset in January 2029, and opponents say it does not clearly address the main ways President Trump has accumulated crypto wealth.

Senator Elizabeth Warren went further, saying Trump is now the "first president in history to approve, operate, and supervise his own bank," a characterisation that captures the core tension the OCC approval adds to an already difficult legislative path. Warren had previously warned the OCC directly: "If the application is approved, you would promulgate rules that influence the profitability of the President's company."

Sources:
Bloomberg: World Liberty Crypto Bank Wins OCC Preliminary Approval
The Block: OCC Grants Conditional Approval for Trump-Backed World Liberty Trust Bank
CoinDesk: Senators Work on Stricter CLARITY Act Ethics Rules