Eric Trump Consents to Avoid World Liberty's Request for its Federal Bank

Eric Trump accepts in black and white not to get involved in the management of the future deposit bank of World Liberty Financial. On paper, a gesture of regulatory goodwill. In fact, a file that already drags its share of shadows… Between ongoing crypto lawsuits, loans recalling bad memories, and criticisms coming from all political sides.

In brief

Crypto: Eric Trump Agrees to Kneel Before Regulators

Eric Trump, the co-founder of World Liberty Zak Folkman, and the Emirati investor Hamad Khalfan Ali Matar Alshamsi have each accepted through related companies to stay away from management decisions of the group’s future federal deposit bank. The technical term is “passivity commitment”, a non-control commitment.

These agreements were made public at the moment when World Liberty just obtained its preliminary approval from the Office of the Comptroller of the Currency. If the federal charter is approved, the company could internally hold the reserves of its stablecoin USD1 which reaches nearly 4 billion dollars in capitalization, rather than depending on a third party for that. According to World Liberty spokesperson David Wachsman, the intention behind this maneuver is that the company plans to remain under federal supervision for years.