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OCC Rejects Calls to Pause Trump-Linked Crypto Bank Bid

Photo of Yusuf Islam Yusuf IslamFebruary 27, 2026Last Updated: February 27, 2026
4 minutes read
OCC Rejects Calls to Pause Trump-Linked Crypto Bank Bid
  • The OCC said it will review World Liberty Financial’s bank charter like any filing.
  • Warren pressed Jonathan Gould yet he refused to pause or reject the application.
  • A new Terra lawsuit revived LUNC interest as traders tracked legal accountability.

A dispute over President Donald Trump’s business ties and crypto regulation resurfaced in Congress after the nation’s top banking regulator refused to pause review of a bank charter linked to Trump’s crypto venture. During a Senate Banking Committee hearing, Comptroller of the Currency Jonathan Gould rejected calls from Senator Elizabeth Warren to halt consideration of World Liberty Financial’s proposed national trust bank. 

Gould said the Office of the Comptroller of the Currency would handle the filing like any other application. Markets showed little reaction to the exchange.

Senate Clash Over Crypto Bank Charter

The confrontation unfolded during a hearing on prudential regulators before the Senate Banking Committee. Senator Elizabeth Warren, the panel’s ranking member, urged Gould to delay or deny the application connected to World Liberty Financial.

The application came from WLTC Holdings LLC last month. It seeks approval to create World Liberty Trust Company, National Association. The proposed entity would operate as a federally regulated trust bank designed to support the firm’s USD1 stablecoin operations.

Warren referenced a Jan. 13 letter she sent to the OCC. In that letter, she called for an immediate halt to the review. She argued that approval while Trump maintains financial ties to World Liberty Financial would place the regulator in an unprecedented position.

She said the OCC would oversee and shape the profitability of a company connected to a sitting president. She pressed Gould on whether he would pause or reject the charter.

Gould declined. He said the agency would process the submission “as we process all applications.” When Warren repeated her request, he responded, “The only political pressure I have felt from any part of the US government, Senator, is from you.”

World Liberty Financial said it complied with all required disclosures during the application process. A company spokesperson accused Democrats of “playing politics” and said the filing would move forward in a “fair and evenhanded manner.”

Gould also said agency staff manage the licensing process under publicly available procedures. He said transparency remains essential to maintaining public trust in the regulatory framework. Will political scrutiny alter the course of the OCC’s review?

Institutional Moves and Corporate Earnings

While the hearing drew attention in Washington, markets remained largely steady. Still, institutional investors adjusted positions in other sectors. First American Trust FSB increased its holdings in Charter Communications by 65.9%. The firm now owns 25,772 shares valued at $7.09 million. In contrast, Envestnet Asset Management Inc. reduced its stake in Charter Communications by 22.8%.

It sold 7,090 shares and retained 24,060 shares worth $6.619 million. The move reflected a strategic portfolio adjustment. Meanwhile, Optical Cable Corporation reported revenue growth of 9.5% to $73 million in fiscal year 2025. The company reduced its net loss to $1.5 million from $4.2 million.

Management credited expansion into the data center market, including collaboration with Lyttera. Gross profit margin improved to 30.9%. Sales order backlog rose to $7.3 million from $5.7 million year over year. For fiscal year 2026, management forecasts stable revenue of $66.67 million. It expects stronger performance in the second half of the year due to seasonal trends.

Related: Senate Panel Advances Market Structure Bill in Narrow Party-Line Vote

Terra Lawsuit Revives Market Interest

Elsewhere, legal developments stirred the crypto market. On Monday, Terraform Labs’ bankruptcy administrator filed a federal lawsuit in Manhattan. The complaint alleges that Jane Street used non-public information to execute profitable trades. It claims those trades accelerated the 2022 collapse of TerraUSD and LUNA, which led to about $40 billion in losses.

The lawsuit renewed attention around LUNC. Lee said the legal action has “reignited trader sentiment around accountability and potential compensation.”

He added that some traders position themselves on the belief that favorable developments could shift market perception or unlock value for legacy holders. He also said headlines about alleged insider trading have correlated with short-term spikes in trading activity and price interest.

Lee cautioned that the ultimate legal outcome remains uncertain. He said that if spot-buying activity continues without price declines, the rally could extend higher.

Disclaimer: The information provided by CryptoTale is for educational and informational purposes only and should not be considered financial advice. Always conduct your own research and consult with a professional before making any investment decisions. CryptoTale is not liable for any financial losses resulting from the use of the content.

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Photo of Yusuf Islam Yusuf IslamFebruary 27, 2026Last Updated: February 27, 2026
4 minutes read

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