House Dems Raise National Security Alarms Over Trump Family’s Crypto Bank Charter Request
Decrypt
by Sander LutzFebruary 20, 2026
AI-Generated Deep Dive Summary
House Democrats have raised significant concerns over the Trump family's crypto firm, World Liberty Financial, following reports that it sold nearly half of its equity to a UAE royal. The lawmakers, in a letter addressed to Treasury Secretary Scott Bessent, warned that approving World Liberty's bank charter application could undermine the independence and legitimacy of the U.S. banking system. They highlighted national security risks, particularly given the company's ties to foreign entities, as well as potential foreign influence over U.S. financial policies.
World Liberty Financial is seeking a national trust bank charter, which would streamline transactions related to its stablecoin, USD1. The application requires approval from the Office of the Comptroller of the Currency (OCC), a bureau within the Treasury Department. The lawmakers expressed skepticism about the OCC's independence and questioned whether the White House or foreign governments could exert undue influence over the decision-making process. They requested detailed information on safeguards in place to prevent such risks.
The letter, coordinated by Rep. Gregory Meeks, also emphasized concerns about foreign ownership and the potential for geopolitical pressures to impact U.S. financial systems. The lawmakers stressed that this issue goes beyond crypto-specific debates, focusing instead on broader implications for national security and regulatory integrity.
The move comes amid heightened scrutiny of World Liberty Financial's ties to foreign investors, including a UAE royal who reportedly secured lucrative AI chip deals with the White House after acquiring a significant stake in the company. Additionally, the timing of the letter coincides with a high-profile conference hosted by the Trump family at Mar-a-Lago, featuring crypto influencers and executives from major financial institutions.
For readers interested in crypto, this situation underscores the growing intersection between traditional finance and digital assets. The debate highlights critical issues such as foreign investment in U.S. financial systems, regulatory oversight of stablecoins, and the potential for geopolitical tensions to influence the adoption and implementation of blockchain technologies. As the OCC evaluates World Liberty's application, the outcome could set a precedent for how foreign-owned crypto firms integrate into the U.S. banking system, shaping the future of digital asset regulation in the process.
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Originally published on Decrypt on 2/20/2026