House Democrats press Treasury on World Liberty bank charter and UAE stake

CoinTelegraph

by Christina Comben

February 20, 2026

AI-Generated Deep Dive Summary

House Democrats are raising concerns over World Liberty Financial's pursuit of a national trust bank charter, focusing on issues like systemic risk, foreign ownership, and potential political interference in the banking system. In a recent letter led by Representative Gregory Meeks, they urge Treasury Secretary Scott Bessent to detail safeguards against foreign governments or politically connected investors exploiting the charter process for influence. A national trust bank charter would allow World Liberty Financial to issue dollar-backed tokens, a significant move in the cryptocurrency and blockchain sectors. This could enhance financial innovation but also raises alarms about foreign control, particularly given the UAE's reported stake in the company. Critics worry this could undermine US financial autonomy by letting foreign entities gain leverage through regulatory pathways. The Democrats' concerns extend to preventing foreign governments from using such charters for political or economic influence. They emphasize the need for transparency and robust safeguards to protect the integrity of the US financial system, ensuring that decisions aren't swayed by external pressures. For crypto enthusiasts, this matters as it highlights the regulatory scrutiny surrounding blockchain innovations. The outcome could shape the stability and acceptance of digital assets within traditional finance, affecting both investors and market regulations. The debate underscores the delicate balance between fostering innovation and mitigating risks associated with foreign investment in critical financial infrastructure.

Verticals

cryptoblockchain

Originally published on CoinTelegraph on 2/20/2026