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Crypto, Power, and Politics Collide in Warren’s Warning Over Trump-Linked Bank

Crypto, Power, and Politics Collide in Warren’s Warning Over Trump-Linked Bank

CoinEditionCoinEdition2026/01/14 14:30
By:CoinEdition

As Congress prepares for a big committee vote on crypto regulation, Elizabeth Warren is drawing a hard line.

The Massachusetts senator is urging the Office of the Comptroller of the Currency (OCC) to pause its review of a bank application linked to Donald Trump until he fully divests and removes all financial conflicts involving himself, his family, and the company.

At the center of the controversy is World Liberty Financial, a crypto firm co-founded by Trump and his two sons. The company has applied to launch a national trust bank focused on stablecoin services, just as Congress debates new crypto market rules.

Warren argues the timing could not be worse. The current draft of the crypto market structure bill, heading for committee markup, does not address Trump’s personal crypto conflicts, even as his company seeks approval from a regulator that ultimately answers to the president.

Her warning is blunt: approving the application now could further damage public trust and put the OCC itself in an unprecedented conflict.

In a letter to Comptroller Jonathan Gould, Warren said questions she raised last year are no longer “hypothetical.” Back then, the OCC declined to comment because World Liberty Financial was not under its supervision. Now, it is.

Warren says the situation is historic — and alarming.

If the OCC approves the firm’s bank charter:

  • The agency would write rules that directly affect the profitability of Trump’s company
  • The OCC would supervise and enforce laws against that same company
  • The regulator would be doing so while serving at the pleasure of the president

“In effect,” Warren argues, the president would be overseeing his own financial firm for the first time in U.S. history.

World Liberty Financial launched in 2024 and rolled out a stablecoin called USD1 in March 2025. Later that year, Congress passed the GENIUS Act, which made the OCC the primary regulator of federally licensed stablecoin issuers, a law Trump signed himself.

In July 2025, Warren opposed the bill, warning that it failed to block presidents or their families from profiting from stablecoins. She says the current World Liberty Financial application proves that concern was justified.

She and other Democratic senators also raised alarms over USD1 being used in high-profile international deals, arguing it created a new pathway for foreign money to flow into Trump-linked ventures.

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This latest move fits a familiar pattern. Warren has spent 2025 aggressively targeting Trump’s crypto activities.

She has warned that Trump’s stablecoin poses national security risks, accused Congress of enabling corruption, and pushed for federal investigations into Trump-linked crypto platforms.

On December 16, Warren asked Scott Bessent and Pam Bondi to launch a federal investigation into Trump’s crypto activities. She pointed to PancakeSwap and its role in promoting Trump-linked tokens, along with reports claiming the platform handled funds tied to North Korean hackers.

Warren is demanding a written commitment from the OCC to delay reviewing the firm’s application until Trump fully divests, with a deadline of January 20, 2026.

Related: Senate Crypto Bill Classifies Network Tokens as Commodities Like BTC

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