- Democrats escalate scrutiny over Trump-linked crypto banking application.
- Treasury faces questions about foreign stake and oversight.
- OCC independence tested amid political and security concerns.
Political scrutiny intensified in Washington after senior House Democrats formally challenged the Treasury Department over a pending crypto banking application tied to President Donald Trump. Lawmakers escalated concerns this week as they pressed Treasury Secretary Scott Bessent for clarity on the Office of the Comptroller of the Currency’s review of World Liberty Financial’s national trust bank charter request.
Lawmakers Question Safeguards in OCC Charter Review
Representative Gregory Meeks, ranking member of the House Foreign Affairs Committee, led the effort alongside several Democratic colleagues. They submitted a formal letter seeking written explanations about safeguards surrounding the OCC’s chartering process. Their request centers on whether political or foreign influence could affect the review.
Also Read: Aave Faces Structural Shift as BGD Labs Confirms April Exit
World Liberty Financial, a Trump-linked crypto venture, seeks a federal trust bank charter to issue stablecoins and provide digital asset custody services. A national trust bank charter would place the company under federal supervision. It would also allow the firm to operate across state lines under a unified regulatory framework.
Lawmakers pointed to reported foreign investment in the company as a key concern. They cited reports describing a 49% stake tied to investors from the United Arab Emirates. Consequently, they urged Treasury to clarify whether national security assessments have taken place.
Foreign Investment and Regulatory Independence Under Scrutiny
The letter also asks whether the White House or Treasury officials have communicated with the OCC regarding the application. Democrats want documentation showing how regulators address potential conflicts of interest. Additionally, they requested details explaining how the OCC preserves independence during sensitive charter decisions.
Earlier questioning of Bessent on Capitol Hill laid the groundwork for this latest move. During that exchange, he stated that Treasury does not have authority to bail out bitcoin. He also emphasized limits on the department’s regulatory role.
This written inquiry now places Treasury under direct pressure to respond on the record. Meanwhile, other lawmakers have called for a national security review of the reported foreign stake. As scrutiny expands, the charter application has become a focal point in broader debates over crypto oversight and political influence.
Also Read: Ripple CEO Makes Revelation About Clarity Act – Here’s When it Could Pass
