Witkoff, Trump Family Crypto Firm Granted Conditional Bank Charter From Federal Regulator

Interesting banking, crypto industry, donald trump, occ, regulations, silicon valley bank admin August 15, 2026 0 Comments

Witkoff, Trump Family Crypto Firm Granted Conditional Bank Charter From Federal Regulator

The Office of the Comptroller of the Currency (OCC) announced the approval of a de novo banking charter for World Liberty Financial late Friday, marking one of the most significant developments in the financial sector since the 2008 financial crisis.

The conditional de novo charter issued by the OCC — a federal banking regulator under the Treasury Department — has stoked more controversy than past charters, as it was granted to World Liberty Financial, a financial entity heavily involved in cryptocurrency markets. Importantly, the move is likely to draw intense criticism as the company was co-founded by Alex and Zach Witkoff — sons of billionaire Trump advisor Steve Witkoff — along with Trump family members.

According to the OCC, a de novo banking charter is granted to a financial institution that forms a banking entity from scratch rather than through a merger or acquisition. Typically, de novo banks face greater federal scrutiny and oversight in their early years because they are newly formed entities.

Matt Stoller, director of research at the American Economic Liberties Project, told the Daily Caller that “this level of corruption always ends in tears.”

Still, a senior agency official stressed to the Daily Caller that the OCC’s primary goal is to develop a robust pipeline of de novo banking institutions, which they contend is crucial to a healthy overall national banking system. World Liberty Financial’s footprint in the cryptocurrency space certainly opens it to higher levels of risk; the OCC appears to be weighing that risk against the need for greater competition in banking — especially as regional and national banks see increasing consolidation. The ties to the Trump family and political allies are certain to raise eyebrows and ire among financial industry watchdogs and lawmakers on Capitol Hill. (RELATED: Treasury Severs Ties With Federal Consulting Giant Over Trump Tax Return Leak)

The OCC official argued that overly cautious regulations since the 2008 financial crisis have essentially sent the message, “Those seeking a federal bank charter and federal deposit insurance need not apply.” They pointed to the steady decline in de novo charter approvals and applications as a concern for the agency — which saw fewer than four applicants a year between 2011 and 2014. The agency official stressed that subsequent congressional action has made it clear that the OCC should be seeking to increase de novo charter approvals.

The Friday decision, however, isn’t sitting well with everyone in the financial sector.

Of especial concern is that crypto-aligned banks represent a similar exposure risk as Silicon Valley Bank (SVB), which collapsed after becoming overly reliant on technology sector clients and was unable to withstand a run on deposits. (RELATED: Regulators Shut Down Silicon Valley Bank After Stock Collapses)

The Caller reported in 2023 that the risk exposure was far more widespread than just SVB. Banking giant Goldman Sachs was the subject of a Securities and Exchange Commission (SEC) probe over its suspected role in the SVB collapse.