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WASHINGTON — Federal regulators have given preliminary approval for a cryptocurrency venture tied to President Trump and his family to operate a digital-asset bank, a decision that has drawn immediate condemnation from Senate Democrats who are now pushing legislation to bar such an action.
Sen. Elizabeth Warren (D-Mass.), the top Democrat on the Senate Banking Committee, and nine other Senate Democrats introduced a bill Saturday that would bar the president, the vice president, their immediate family members and other senior government officials from owning or controlling banks.
The measure was proposed a day after the Office of the Comptroller of the Currency — which is part of the Trump administration — granted conditional approval for World Liberty Trust Co. to become a trust bank. The firm was founded in 2024 by two of Trump’s sons and the sons of Steve Witkoff, the Trump administration’s special envoy to the Middle East.
If the firm gets final approval, it would not act like a conventional bank and take deposits or make loans. Instead, the chartered bank would be able to issue and manage cryptocurrencies and digital assets. But the move would grant new financial powers to the Trump family’s crypto business, which has already shown to be profitable for the president in his first year back in the White House.
President Trump’s $1.4-billion crypto windfall has become the biggest obstacle to passing his sweeping digital-asset legislation as Democrats demand tougher language to prevent the president from profiting off an industry his administration regulates.
Trump’s financial disclosures show the president has earned more than $1.2 billion from crypto-related projects as he has pushed to deregulate the digital-asset industry. He hauled in more than $500 million from his World Liberty Financial business selling new crypto products and is a significant owner of the firm through an entity called DT Marks DEFI LLC, which holds about a 38% stake.
Aside from World Liberty Financial, Trump last year took in more than $600 million from sales of souvenir-type “meme” coins stamped with his likeness.
Trump’s crypto windfall has lately fueled Democrats’ argument that the president stands to personally gain from the same regulatory apparatus he oversees, and has led to acrimonious negotiations in Capitol Hill over how to regulate the industry.
The White House said Tuesday “there are no conflicts of interest.” But the recent decision by federal regulators in relation to World Liberty Financial is now giving more ammunition to Democrats, who have pushed for more ethical guardrails to crack down on the Trump family’s crypto ventures.
“This is the most brazen act of self-dealing our financial system has ever seen — and Congress cannot allow it to stand,” Warren said in a statement. “The Ending Presidential Corruption in Banking Act will close the door on this kind of unprecedented corruption.”
Sen. Angela Alsobrooks (D-Md.) said the decision to allow a Trump-linked crypto firm to charter its own bank is “injecting risk into our financial system and fueling the Trump family’s business endeavors.”
“It is Congress’ responsibility and duty now to rein in this corruption and ensure that bank charters, deposit insurance, and other banking licenses cannot be handed out to entities influenced or controlled by any President’s family,” Alsobrooks said in a statement.
Trump also took in millions last year from selling Trump-branded Bibles, sneakers and other items in another unprecedented move for the presidency.
