Zach Witkoff, the CEO of World Liberty Financial, has pointed to the trading activity of USD1 as proof of organic market demand, pushing back against critics who characterize the stablecoin as a tool to gain influence with the President of the United States. The debate intensifies following a recent federal regulatory decision granting a bank charter to the company, which increases the Trump family's involvement.
Over a 24-hour period, USD1 recorded approximately $1.42 billion in trading volume, with a market value of around $4.03 billion and a turnover ratio exceeding 35%. Witkoff attributes this activity to organic growth, stating that institutions trust the project's operations and that enterprise-scale confidence warrants federal supervision. He added that the company welcomes scrutiny from federal regulators.
The Office of the Comptroller of the Currency (OCC) granted World Liberty Trust Co. preliminary conditional approval on August 14 to operate a national trust bank. The designation permits the company to issue and redeem USD1 directly, hold its backing reserves, and provide custody services independently of external partners. However, the charter is unconventional as it restricts the institution from issuing loans, credit cards, or federally insured deposits.
While World Liberty aims to drive mainstream adoption of USD1, the approval has amplified ethical debates. Critics, including Georgetown University associate professor James Angel, argue that holding USD1 is motivated by its proximity to the White House. Skeptics also highlight the scale gap between USD1 and larger competitors, noting that Tether holds approximately $183 billion in circulation and Circle's USDC exceeds $70 billion, compared to USD1's roughly $4 billion.
Political opposition has also mounted. Senator Elizabeth Warren criticized the OCC decision as a severe instance of self-dealing, and alongside Representative Maxine Waters, requested that the SEC clarify whether the President's financial ties influenced World Liberty's management. A financial disclosure revealed approximately $600 million in proceeds from World Liberty token and equity sales for Donald Trump, whose family venture, DT Marks DEFI LLC, owns about 38% of the holding company controlling World Liberty Financial.
World Liberty maintains that no conflict of interest exists, asserting that the President has no management role in the company and that none of its staff or leaders are government employees. A company spokesperson stated that critics are missing the point and that the organization focuses on complying with necessary regulations and oversight.
