Senate Democrats Move to Bar Trump-Linked Crypto Bank After $1.4 Billion Windfall
Updated
Updated · Los Angeles Times · Aug 18
Senate Democrats Move to Bar Trump-Linked Crypto Bank After $1.4 Billion Windfall
3 articles · Updated · Los Angeles Times · Aug 18
Summary
Ten Senate Democrats led by Elizabeth Warren introduced a bill that would bar presidents, vice presidents, senior officials and their immediate families from owning or controlling banks.
The push came a day after the Office of the Comptroller of the Currency gave conditional approval for World Liberty Trust Co., a Trump-linked crypto venture, to operate as a trust bank for digital assets.
World Liberty was founded in 2024 by two Trump sons and the sons of envoy Steve Witkoff; if it wins final approval, it would issue and manage cryptocurrencies rather than take deposits or make loans.
Democrats say the charter deepens conflicts because Trump has reported more than $1.2 billion from crypto projects, including over $500 million from World Liberty Financial and more than $600 million from meme-coin sales.
The White House and World Liberty rejected conflict claims, saying Trump’s holdings are managed by third parties and that a national charter would place the business under lasting federal oversight.
OCC’s $4 Billion World Liberty Trust Approval Triggers Unprecedented Trump Conflict, Senate Backlash, and Crypto Law Gridlock
Overview
In August 2026, the OCC granted preliminary approval for World Liberty Trust Company, a national trust bank sponsored by the Trump family, following regulatory changes from the 2025 GENIUS Act. This sparked immediate backlash from Senate Democrats, who introduced the Ending Presidential Corruption in Banking Act to block such charters. The controversy, fueled by the Trump family's billion-dollar crypto windfall and foreign investments, paralyzed progress on the CLARITY Act, a key crypto regulation bill. The OCC's decision also highlighted a surge in crypto bank applications under the Trump administration, raising concerns about regulatory integrity, conflicts of interest, and national security.