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Warren Presses Banking Regulator on Trump Family's Crypto Bank Application

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Senator Elizabeth Warren demanded transparency on Thursday regarding the Trump family's application to establish a stablecoin bank, questioning whether regulators are following the law.

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So here's a fun little scene from Washington: Senator Elizabeth Warren (D-Mass.) decided to play financial detective on Thursday, pressing the nation's top banking regulator for details about the Trump family's application to start a stablecoin bank. You know, just your typical Thursday in the Senate Banking Committee.

Warren, who serves as the committee's Ranking Member, grilled Comptroller of the Currency Jonathan Gould about whether regulators are actually following the law when it comes to the bank charter application filed by World Liberty Financial. That's the firm co-founded by President Donald Trump's sons, which is trying to get into the stablecoin banking game.

Here's the thing about bank applications: the rules say you have to disclose all your principal shareholders—those are people with at least a 10% direct or indirect stake in the proposed bank. If you don't, your application can get tossed. Warren wants to make sure everyone's playing by those rules.

"The public deserves transparency," Warren said, demanding that the "unredacted application" be shown to her and Banking Committee Chair Sen. Tim Scott (R-S.C.) so they can check whether the "appropriate disclosures" have been made. It's like she's asking to see the recipe before tasting the soup.

Gould, for his part, played it cool. He told Warren he's committed to following the "established procedures" outlined in the regulations and would be happy to consider her request. "I would be happy to entertain the request and discuss with the team to make sure that we afford you the same privileges that we have afforded past administrations," Gould said. Translation: we'll look into it, but we're going to follow our normal process.

This isn't Warren's first rodeo with Trump family crypto projects. She's been one of the most vocal critics of their cryptocurrency ventures, including the Official Trump (TRUMP) memecoin and the USD1 dollar-pegged stablecoin. She's previously accused the Trump administration of "crypto corruption" after reports surfaced about a $500 million investment from a top UAE royal in World Liberty Financial.

That reported investment came through Aryam Investment, a Tahnoon-backed firm that acquired a 49% stake, making it the company's largest known shareholder. When someone puts half a billion dollars into your company, people tend to notice.

Warren has also alleged a potential quid pro quo between the Trump family and Binance's convicted founder Changpeng "CZ" Zhao. Her concern stems from USD1 being chosen to close Abu Dhabi investment firm MGX's $2 billion deal with Binance. The timing raised eyebrows, especially since CZ was eventually pardoned by Trump. It's the kind of coincidence that makes regulators reach for their reading glasses.

So now we wait to see if Warren gets her look at the unredacted application. Will the OCC show her the documents? Will everything be properly disclosed? And what happens if it's not? These are the questions hanging over what could become one of the more interesting banking applications in recent memory.

Warren Presses Banking Regulator on Trump Family's Crypto Bank Application

MarketDash
Senator Elizabeth Warren demanded transparency on Thursday regarding the Trump family's application to establish a stablecoin bank, questioning whether regulators are following the law.

Get Market Alerts

Weekly insights + SMS alerts

So here's a fun little scene from Washington: Senator Elizabeth Warren (D-Mass.) decided to play financial detective on Thursday, pressing the nation's top banking regulator for details about the Trump family's application to start a stablecoin bank. You know, just your typical Thursday in the Senate Banking Committee.

Warren, who serves as the committee's Ranking Member, grilled Comptroller of the Currency Jonathan Gould about whether regulators are actually following the law when it comes to the bank charter application filed by World Liberty Financial. That's the firm co-founded by President Donald Trump's sons, which is trying to get into the stablecoin banking game.

Here's the thing about bank applications: the rules say you have to disclose all your principal shareholders—those are people with at least a 10% direct or indirect stake in the proposed bank. If you don't, your application can get tossed. Warren wants to make sure everyone's playing by those rules.

"The public deserves transparency," Warren said, demanding that the "unredacted application" be shown to her and Banking Committee Chair Sen. Tim Scott (R-S.C.) so they can check whether the "appropriate disclosures" have been made. It's like she's asking to see the recipe before tasting the soup.

Gould, for his part, played it cool. He told Warren he's committed to following the "established procedures" outlined in the regulations and would be happy to consider her request. "I would be happy to entertain the request and discuss with the team to make sure that we afford you the same privileges that we have afforded past administrations," Gould said. Translation: we'll look into it, but we're going to follow our normal process.

This isn't Warren's first rodeo with Trump family crypto projects. She's been one of the most vocal critics of their cryptocurrency ventures, including the Official Trump (TRUMP) memecoin and the USD1 dollar-pegged stablecoin. She's previously accused the Trump administration of "crypto corruption" after reports surfaced about a $500 million investment from a top UAE royal in World Liberty Financial.

That reported investment came through Aryam Investment, a Tahnoon-backed firm that acquired a 49% stake, making it the company's largest known shareholder. When someone puts half a billion dollars into your company, people tend to notice.

Warren has also alleged a potential quid pro quo between the Trump family and Binance's convicted founder Changpeng "CZ" Zhao. Her concern stems from USD1 being chosen to close Abu Dhabi investment firm MGX's $2 billion deal with Binance. The timing raised eyebrows, especially since CZ was eventually pardoned by Trump. It's the kind of coincidence that makes regulators reach for their reading glasses.

So now we wait to see if Warren gets her look at the unredacted application. Will the OCC show her the documents? Will everything be properly disclosed? And what happens if it's not? These are the questions hanging over what could become one of the more interesting banking applications in recent memory.