Treasury Approves New Banking Charter for Crypto-Linked World Liberty Financial
The U.S. Treasury announced that the Office of the Comptroller of the Currency granted a de novo banking charter to World Liberty Financial, a firm tied to the Witkoff family and active in cryptocurrency.
The Treasury Department disclosed that the Office of the Comptroller of the Currency issued a de novo banking charter to World Liberty Financial, a newly created institution with strong ties to the cryptocurrency market. The company was established by Alex and Zach Witkoff, whose father is billionaire Trump adviser Steve Witkoff, and also involves members of the Trump family. OCC officials emphasized that expanding the number of new banks is essential for a healthy national banking system, especially as larger banks continue to merge.
However, the charter has drawn sharp criticism, with some observers likening the crypto exposure to the vulnerabilities that led to Silicon Valley Bank's collapse. Matt Stoller of the American Economic Liberties Project described the approval as indicative of corruption. The controversy is expected to attract scrutiny from financial watchdogs and Capitol Hill legislators.
Why it matters
A crypto-focused bank receiving a federal charter could reshape banking competition and raise regulatory concerns.
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