House Democrats are questioning Treasury Secretary Scott Bessent about the regulatory review of World Liberty Financial’s application for a national trust bank charter to issue a dollar-backed stablecoin. In a letter led by Representative Gregory Meeks, 41 lawmakers cited concerns over foreign ownership, potential political pressure, and systemic risks. They specifically pointed to reports that a senior UAE royal acquired nearly half of the company, with funds flowing to Trump-affiliated entities, during its charter pursuit.
Democrats on the House Financial Services Committee are pressing Treasury Secretary Scott Bessent for details on how regulators are handling World Liberty Financial’s bid for a national trust bank charter. In a letter led by Representative Gregory Meeks, they cited systemic risk and foreign ownership concerns.
The lawmakers asked Bessent to explain safeguards against foreign government officials using the charter process for leverage. They pointed to reporting that a senior royal from the United Arab Emirates acquired almost half of World Liberty Financial for about $500 million.
The reported acquisition included $187 million flowing to Trump-affiliated entities. The company was simultaneously pursuing a charter with the Office of the Comptroller of the Currency.
They argued digital asset trust structures and foreign political interests raise serious questions. The letter stated regulators “cannot afford to sidestep” these issues.
Democrats also questioned whether Executive Order 14215 compromises the OCC’s autonomy. They asked Bessent to detail the White House and Treasury’s role in OCC charter decisions.
The letter requests a written response by Thursday. This inquiry comes as Trump-aligned crypto initiatives gain prominence in Washington.
World Liberty Financial was featured at a crypto event at Trump’s Mar-a-Lago club this week. The event drew executives like Coinbase CEO Brian Armstrong and Binance co-founder Changpeng Zhao.
Separately, Senator Elizabeth Warren urged regulators not to bail out crypto markets. She warned against shifting losses from large investors onto taxpayers.
Warren’s letter framed potential rescue measures as a moral hazard test. It cautioned against extending bank-style backstops to the digital asset sector.
