• Senate Democrats and an independent senator have introduced legislation following the OCC's approval of World Liberty Trust Co.
• The proposed bill would prohibit presidents, senior officials and their immediate families from owning or controlling banks
• Senator Elizabeth Warren called the charter approval an unprecedented conflict of interest
• The legislation would also block approvals for deposit insurance and Federal Reserve master accounts
• Banking agencies would be required to review qualifying approvals granted after January 20, 2025
• The proposal intensifies political scrutiny of crypto-related bank charters and regulatory governance



Congressional Democrats have moved swiftly to challenge the Office of the Comptroller of the Currency's conditional approval of World Liberty Financial's national trust bank.

Their move to introduce legislation designed to prevent senior elected officials and their families from owning or controlling federally regulated banks is seen as a direct response to the perceived financial interest President Donald Trump has in WLF, which is run by his sons.

The proposed Ending Presidential Corruption in Banking Act unveiled by nine Senate Democrats and independent Senator Bernie Sanders came just a day after the OCC approved World Liberty Financial's application to establish World Liberty Trust Co., a national trust bank that will support the company's stablecoin operations.

Supporters of the legislation argue that the approval has exposed what they view as a significant gap in federal banking law by allowing a financial institution partly owned by the president's family to operate under the supervision of agencies ultimately overseen by the executive branch.

Senator Elizabeth Warren, the ranking Democrat on the Senate Banking Committee, described the decision as an unprecedented conflict of interest.

"President Trump is now the first President in history to approve, operate, and supervise his own bank," Warren said in a statement.

"This is the most brazen act of self-dealing our financial system has ever seen – and Congress cannot allow it to stand. The Ending Presidential Corruption in Banking Act will close the door on this kind of unprecedented corruption."

The legislation is co-sponsored by Senators Chris Van Hollen, Angela Alsobrooks, Chris Murphy, Richard Blumenthal, Jack Reed, Andy Kim, Tammy Duckworth and Ruben Gallego, alongside Sanders.

If enacted, the bill would prohibit the Federal Reserve, the OCC and the Federal Deposit Insurance Corporation from approving banking applications submitted by entities owned or controlled by a president, vice president, their spouses or children, members of Congress, presidentially appointed executive branch officials or special government employees.

The restrictions would extend beyond bank charters to include applications for deposit insurance and Federal Reserve master accounts, effectively preventing covered individuals from obtaining access to key elements of the U.S. banking system while serving in public office.

The legislation also contains retrospective provisions. Federal banking agencies would be required, within 60 days of the bill becoming law, to review every banking application approved after January 20, 2025.

Any current approvals involving individuals covered by the legislation would be terminated under the proposed framework.

The bill follows the OCC's conditional approval of World Liberty Financial's trust bank application after a review process lasting more than seven months.

According to the OCC's licensing handbook, the agency aims to process charter applications within approximately 120 days where possible, although complex applications can require substantially longer reviews.

During the same period, the OCC approved several other national trust bank applications.

However, none involved ownership by a sitting president or members of a president's immediate family, making the World Liberty decision politically distinct from previous approvals.

The charter authorizes the creation of World Liberty Trust Co., which is expected to issue and administer the company's USD1 stablecoin while providing digital asset custody and reserve management services under OCC supervision once all conditions of approval have been satisfied.

The decision has intensified debate over the expanding role of cryptocurrency firms within the regulated banking sector.

Supporters argue that bringing stablecoin activities under federal banking supervision should strengthen governance, reserve management and consumer confidence.

Critics contend that the involvement of politically connected owners raises broader questions about regulatory independence and public trust in the chartering process.

Although the proposed legislation faces uncertain prospects in a divided Congress, it signals that scrutiny of crypto-related bank charters is likely to remain intense.

As digital asset firms continue pursuing federal banking licenses, lawmakers appear increasingly focused not only on financial stability and consumer protection but also on the governance standards surrounding ownership and regulatory oversight.