TLDR
- Democrats demand Treasury answers on OCC review of Trump-backed crypto bid!
- Lawmakers flag UAE stake and national security risks in charter application
- Letter seeks proof OCC stays independent from White House political pressure
- World Liberty eyes trust bank charter to expand token issuance and services
- Warren warns against backstops that could shift crypto losses onto taxpayers
Democratic lawmakers intensified pressure on Treasury as they sought clarity on the review of World Liberty Financial’s charter bid. They highlighted national security concerns tied to foreign ownership and called for firm safeguards across the process. They also asked Treasury to explain any White House involvement that could influence the OCC’s independence.
Scrutiny of Charter Review Deepens
Democrats pressed Treasury to outline how regulators are protecting the charter process from political or foreign interference. They argued that the increasing role of digital asset platforms demands stronger assurances from federal authorities. They also noted that the OCC’s decisions carry broad implications for national financial stability.
World Liberty Financial continued to pursue a national trust bank charter that would enable expanded digital asset activity. The firm seeks federal approval to issue a dollar-backed token and provide trust services across states. However, the lawmakers said this effort requires deeper vetting because of the company’s ownership structure.
Reports indicated that a senior UAE royal acquired a major stake in the company during its charter push. The funding included large payments to entities linked to former President Donald Trump, raising oversight concerns. Therefore, Democrats said that these developments justified a more detailed accounting from Treasury.
Questions on Regulatory Independence Rise
The letter directed Treasury Secretary Scott Bessent to confirm what limits protect the OCC from political influence. Democrats referenced a recent executive order that expanded White House oversight of financial agencies. They said this shift raised new questions about potential pressure on OCC reviewers.
They asked Treasury to outline which offices participate in communication with the OCC during charter assessments. They stressed that clarity is needed to preserve the agency’s independent framework. They also said transparency will help assure Congress that review standards remain consistent.
The inquiry followed earlier exchanges where Bessent described Treasury’s restricted role in stabilizing digital asset markets. Lawmakers said those remarks reinforced the need for written detail on jurisdictional boundaries. They also argued that rising crypto activity demands stronger coordination across agencies without weakening independence.
Broader Political and Market Context Expands
The request arrived as Trump-aligned digital asset ventures increased their presence in federal policy circles. World Liberty Financial gained further visibility through a high-profile event that drew major industry figures. Moreover, the firm’s token rose ahead of the gathering because organizers promoted its roadmap.
Democrats said the company’s expanding network underscores the need for credible oversight of its charter application. They also emphasized that foreign ties make the review more complex and sensitive. Furthermore, they noted that earlier Senate inquiries already called for national security evaluations.
Senator Elizabeth Warren also urged regulators to avoid support measures that could shield major crypto firms from market losses. She warned that such efforts could shift financial risks toward taxpayers. Consequently, she pressed federal officials to maintain strict boundaries between traditional safety nets and digital asset entities.
