Donald Trump clinching the presidency in November 2024 was a major win for crypto. Promises of warm rules, a Strategic Bitcoin Reserve, and accelerated Bitcoin and crypto mining were a perfect base for Bitcoin and some of the top cryptos to buy to jump. And they did.
Bitcoin flew to over $125,000 sometimes in 2025 before recoiling to spot rates. Within the same year, something amazing in crypto regulation in the United States happened: The approval of the GENIUS Act. DeFi was rejuvenated, and institutions channeled billions to promising crypto firms. Considering the pace of capital injection, there is no doubt that some of the top DeFi protocols by market cap could easily be 100X heavyweights by the end of the decade.
The way towards this future is for DeFi firms to find more regulatory clarity and actually comply with existing laws. Leading the way is the World Liberty Financial, a crypto firm tied to President Donald Trump’s family.
On January 7, the World Liberty Financial said they had applied for a federal banking charter to issue and manage its USD1 stablecoin. Following this news, the Bitcoin price held steady around $90,000, showing that traders treated this as a regulatory signal, not a price catalyst.
The bigger story sits in Washington, where crypto firms now line up to look more like banks.
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A Banking Charter: What Does It Mean for World Liberty Financial
Simply put, a banking charter is a license from regulators that lets a company operate under federal banking rules. Think of it like a health inspection grade for money handlers. With it, firms avoid a messy patchwork of state laws.
World Liberty Financial wants a national trust charter from the Office of the Comptroller of the Currency (OCC).
That charter would let it issue USD1, a dollar-backed stablecoin, under federal supervision. Stablecoins aim to hold a steady $1 value, acting like digital cash on a blockchain.
As of January 8, there are over $3.4Bn of USD1 in circulation.
(Source: Coingecko)
For context, that puts it in the mid-tier of stablecoins. Big enough to matter. Small enough to move fast.
If regulators approve the charter, USD1 would sit closer to the US banking system. That can mean smoother conversions between dollars and crypto. Fewer frozen transfers. Clearer rules when things go wrong.
Zach Witkoff, the proposed President and Chairman of World Liberty Trust Company, said if the application is approved, it will allow them to offer a “full-stack” solution.
“Institutions are already using USD1 for cross-border payments, settlement, and treasury operations. A national trust charter will allow us to bring issuance, custody, and conversion together as a full-stack offering under one highly regulated entity.”
Overall, the application fits a wider trend.
Firms like Circle, BitGo, and Paxos chase similar licenses.
Even with this progress, as 99Bitcoins reported, traditional banks are pushing back against crypto firms receiving banking licenses, worried about competition.
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WLFI Crypto Rallying
News of World Liberty Financial seeking a banking license comes on the back of a solid WLFI crypto performance.
In the last week of trading, WLFI crypto rose nearly +20%, stabilizing just below a key resistance at $0.182. If this level is broken, ideally at the back of the expanding trading level, WLFI USDT price could rally to $0.255, reversing losses of Q4 2025.
If the license is approved, WLFI crypto holders may see further gains in Q1 2026.
After all, political ties add noise. World Liberty Financial lists Trump’s sons as co-founders, with Trump as co-founder emeritus.
That attention can speed things up.
On the flipside, however, it can also slow approvals if regulators feel pressure to look extra tough.
Still, WLFI crypto looks solid at spot rates, and any expansion building on this week’s gains will likely pull in more bulls.
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The post Trump-Linked World Liberty Financial Crypto Firm Moves Toward Bank Status, WLFI Crypto Rally appeared first on 99Bitcoins.