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
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