World Liberty CEO defends USD1 as $4B stablecoin faces cronyism claims

World Liberty Financial CEO Zach Witkoff defended the USD1 stablecoin against cronyism claims, citing $4 billion in circulation and $1.7 billion in trailing 24-hour volume, as the Trump-linked venture nears bank charter approval.

"There's over $4 billion of USD1 in circulation and over a billion dollars trades every single day in volume in USD1," Witkoff told CNBC's "Squawk Box" Tuesday. "Before I came on set, I checked the volume metrics — it was $1.7 billion in the trailing 24 hours, and that speaks to the use case of USD1."

The defense comes as the Office of the Comptroller of the Currency granted preliminary approval for World Liberty Trust Company to operate as a national trust bank, which would bring issuance and custody of USD1 in-house from current custodian BitGo. Trump's annual financial disclosure showed roughly $515 million in income from WLF token sales and $65 million from equity sales in the holding company during 2025.

The allegations extend beyond the Trump family's finances. A UAE-linked group's purchase of a 49 percent stake in WLF has prompted congressional Democrats to question whether the investment influenced administration policy on AI-chip exports and arms sales. The Trump family was also entitled to roughly $500 million from a deal between WLF and Alt5 Sigma, whose shares subsequently plunged.

OCC Approval Shifts Custody In-House

Witkoff said he has "never talked to" the president about business and "never has, never will," emphasizing that USD1 is a small part of the Trump family's broader business empire. He said he spends his time "thinking about how I execute on behalf of our employees and ultimately our customer."

The OCC's preliminary approval, if finalized, would mark a significant structural shift for WLF. The company would no longer rely on BitGo for stablecoin issuance and reserve custody, gaining direct control over the dollar reserves backing USD1. This integration into the US financial system is exactly the kind of development that supporters of the "Crypto-Trump" theory point to as possible pre-election support for the sector.

The timing is notable. Bitcoin's aggregate demand on spot and futures markets turned positive for the first time since October 2025, according to CryptoQuant, and VanEck data shows 8 of 12 tracked indicators in the capitulation zone. BlackRock continues to recommend a 1-2 percent bitcoin allocation in diversified portfolios, citing its role as an alternative monetary asset as US government debt and budget deficits rise.

Political Spending Raises Questions

The crypto industry has contributed about $189 million to the 2026 election cycle, more than a third of all corporate donations, according to data cited in market analysis. In 2024, crypto companies became the largest corporate political donors. The scale of this spending has fueled speculation that the White House may continue delivering favorable regulatory news ahead of November's congressional elections.

The broader stablecoin sector is watching closely. If WLF secures final approval, it would become one of the few stablecoin issuers operating under a national trust bank charter, potentially setting a precedent for how other issuers navigate US banking regulation. The outcome could influence governance standards across the sector, particularly around issuer transparency and reserve management.

For investors, the key question is whether the OCC's preliminary approval opens a broader regulatory path for stablecoin issuers or represents a one-off arrangement tied to political connections. The answer will shape how other issuers approach US banking charters and how regulators balance innovation with conflict-of-interest concerns.

This article is for informational purposes only and does not constitute investment advice.