Trump family-run WLF obtains preliminary approval for virtual asset bank… Conflict of interest controversy

CNN reported on the 17th (local time) that World Liberty Financial (WLF), a cryptocurrency company run by President Donald Trump's family, has reportedly obtained preliminary approval from the federal government to establish a virtual asset bank, sparking controversy once again over conflict of interest.

WLF announced in a press release on the 14th that the U.S. Office of the Comptroller of the Currency (OCC) gave preliminary conditional approval for the establishment of World Liberty Trust Company, National Association (WLTC), a trust bank aimed at operating stablecoins.

Final approval for the establishment of the WLTC must meet several conditions, but the OCC's decision is considered a major victory for the WLF.

CNN reported that this approval was met with strong criticism, with some even comparing it to a new twist on the classic case of 'the fox guarding the chicken coop'.

Elizabeth Warren (Democrat), ranking member of the U.S. Senate Banking Committee, said in a statement, “This is the most brazen act of self-dealing in the history of the financial system.”

Meanwhile, Reuters reported on this day that WLF is doing business with ‘World Claw,’ which provides Chinese AI services, and that WLF executives are serving as World Claw advisory committee members.

WorldClaw, headquartered in Hong Kong, was established earlier this year and uses cryptocurrency tokens issued by WLF as a payment method.

Reuters pointed out that about half of the AI ​​models that WorldClaw can provide to customers are models of Chinese companies such as Z.ai, Alibaba, and Baidu, and that these companies are Chinese companies that the Trump administration claimed were a threat to national security and intellectual property rights.