Crypto: Eric Trump Signs Non-Control Commitment for Future World Liberty Bank
Eric Trump has explicitly agreed not to interfere in the management of the future deposit bank of World Liberty Financial. On paper, this is a gesture of regulatory goodwill. In reality, it is a case that already carries its share of uncertainties... Between ongoing crypto lawsuits, loans reminiscent of bad memories, and criticism from all political sides.
In brief
- Eric Trump, Zak Folkman, and an Emirati investor agree to stay away from the management of the future World Liberty Financial bank.
- Justin Sun accuses World Liberty of freezing his tokens and blocking his voting rights; the case remains before a federal court.
- The OCC has already approved similar charters for Ripple, Paxos, Fidelity, and Coinbase, signaling a clear pro-crypto shift.
Eric Trump, co-founder of World Liberty Zak Folkman, and Emirati investor Hamad Khalfan Ali Matar Alshamsi have each agreed through their affiliated companies to stay away from the management decisions of the group's future federal deposit bank. The technical term is "passivity commitment," a commitment of non-control.
These agreements were made public at the moment when World Liberty has just received its preliminary approval from the Office of the Comptroller of the Currency. If the federal charter is validated, the company could internally hold the reserves of its USD1 stablecoin, which amounts to nearly $4 billion in capitalization, rather than relying on a third party for that. According to World Liberty spokesperson David Wachsman, the intention behind this maneuver is for the company to remain under federal supervision for years.
World Liberty Financial's commitment to transparency comes at a time when the company is burdened by a heavy legal case that tarnishes its image. Justin Sun, the founder of Tron and the largest external investor in the project with $75 million injected, filed a lawsuit against World Liberty in April. The company allegedly:
- Frozen all of his tokens;
- Deprived him of his governance voting rights;
- Threatened to permanently destroy his assets.
World Liberty has, of course, countered with a defamation lawsuit, accusing Justin Sun of orchestrating a smear campaign after he himself breached his contractual commitments. Both proceedings are still ongoing, and a federal judge even refused to send the Sun case to private arbitration.
Another detail fueling doubts is an investigation published in April revealing that World Liberty had deposited $5 billion of its own WLFI tokens on the Dolomite lending platform as collateral to borrow approximately $75 million in stablecoins. The process feels familiar to anyone who followed the collapse of FTX... Using one's own token as collateral to raise funds... a circular leverage scheme that several observers have deemed risky. This has led to public criticism from all sides, notably from Hunter Biden, who today denounces what he calls a blatant conflict of interest.
This World Liberty case does not play out in a vacuum, as the current Comptroller of the Currency, Jonathan Gould, seems to have made the approval of new bank charters one of his stated priorities. This marks a sharp turn from the previous administration, which was much more hesitant regarding requests from the crypto sector. Ripple, Paxos, and Fidelity Digital Assets also received similar conditional approvals in 2025. Coinbase followed earlier this year.
In other words, the climate has shifted. What was once the exception just two years ago is becoming almost the norm today for major crypto names seeking a federal bank charter. Recently, it was Donald Trump himself who hosted leaders from several crypto companies at the White House while the SEC was simultaneously finalizing a broader regulatory framework for the entire sector.
The non-control commitment signed by Eric Trump for World Liberty Financial appears on paper to meet the requirements of federal regulators. But with an ongoing lawsuit involving Justin Sun, a loan that recalls the worst hours of FTX, and family financial ties that have never been completely dissipated... The promise to remain "passive" struggles to erase the lingering questions.
-- Price
This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.
You may also like

Billions of Dollars in Crypto Assets Exposed to Risk: Who Will Insure Them?

Trump's Envoy, Crypto Shareholder: The Double Game of Steve Witkoff

Judge Keeps Sun's World Liberty Claims In Court

Bitcoin Layer 2 Network Botanix: Why Did We Choose to Dissolve?

Data: WLFI spent $115 million to expand the market for USD1, stablecoin scale increased by 50%, trading volume increased tenfold

WLFI repaid 25 million USD1 loans at Dolomite, and the deposit interest rate has returned to 10.43%

The Trump family's cryptocurrency project WLFI has been exposed for borrowing tens of millions of dollars through related agreements, raising questions about conflicts of interest

Memecoins: 17 Days to Reach the Peak, One Year to Lose 95%!

Starknet Considers Separating from Ethereum to Become Quantum-Resistant

Bitcoin Directly or via an ETP in a Securities Account: What to Choose?

AMC's No Does Not Automatically Halt AMC Stock Tokens Abroad on Robinhood

Microsoft exposes how USDT-funded phishing network targeted 75,000 organizations

XRP Fails to Match Bitcoin and Ether's Success for Long-Term Holders: Why the Token Lags Behind the Market

Fortitude sold $8.3 million in borrowed Zcash to fund its mining expansion

Bank of America: Still Expecting Rate Hike in October, Raises Forecast for Fed's Favorite Inflation Indicator

Study finds $188 billion in risky funds linked to crypto exchanges

September Web3 Security Monthly Report: 48 Major Security Incidents, Over $760 Million in Stolen Funds

Papertrade Revenue Surpasses Circle? It's Just a 'Liquidation Harvesting Machine'

Pearl's Strategic Power: Not Eliminating Useless Miners, But Naturally Phasing Them Out Through Economic Principles

Scammers First Deceive, Then Offer to Help Recover Losses

Ripple opens Wall Street’s door to Hyperliquid’s $59 billion trading market

MSCI New Rules Implemented, 14 Crypto Companies Enter Potential Impact List

G7, AI and Stablecoins: The 3 Stablecoin Issues Ignored by Finance Ministers

What Do the New Tesla Roadster Specs Mean for Tesla (TSLA) Stock?
Explore the new Tesla Roadster specs, reservation payments and 2028 production plan, plus what the reveal could mean for Tesla stock and future profits.
Quant (QNT) Price Prediction 2026–2030: Can Bank Adoption Drive a Return to $500?

Spout raises $2M to offer 0% interest loans on Solana

RWA Weekly: Ant Group and HSBC Test Agent Tokenized Payments; Robinhood Explores Tokenized Actively Managed ETFs

Chips, AI and Bitcoin: Reading Cross-Market Risk Appetite After a Volatile Week

Is a Bitcoin record closer than you think? This one indicator reveals everything









