Zach Witkoff stated that USD1 actively accepts OCC supervision.

World Liberty Financial co-founder Zach Witkoff responded to external doubts, stating that the company's application for an OCC national trust bank charter is aimed at accepting more continuous and stringent federal regulation, rather than evading it.

The Office of the Comptroller of the Currency (OCC) has granted preliminary conditional approval to World Liberty Trust Company. This trust bank plans to place the issuance, custody, and reserve management of USD1 under direct OCC supervision, but cannot officially operate until meeting pre-opening conditions.

Witkoff stated that the OCC charter means ongoing supervision, regular reviews, capital and liquidity requirements, Bank Secrecy Act anti-money laundering and sanctions controls, internal audits, operational risk standards, and federal enforcement authority; these regulatory obligations will not automatically disappear with the end of the current administration.

The OCC approval letter requires World Liberty Trust to maintain at least $20 million in Tier 1 capital, of which at least $10 million or half of Tier 1 capital (whichever is higher) must be kept as qualifying liquid assets; the institution must also maintain a liquidity reserve for 180 days of operating expenses.

The application was submitted in January of this year, and after review by professional regulators, the OCC granted conditional approval. The proposed trust bank will be headquartered in Bay Harbor Islands, Florida, with business including the issuance and management of USD1, reserve management, and digital asset custody.

Witkoff stated that USD1 is the second-largest stablecoin by market capitalization and trading volume that meets GENIUS Act standards; however, this claim is a statement from company executives, and market share, compliance qualifications, and the definition of "second largest" should still be verified based on stablecoin issuance volume, trading data, and applicable laws.

In terms of market mechanisms, World Liberty attempts to integrate the issuance, redemption, reserves, and custody of stablecoins into a single legal entity regulated by the OCC. Buyers are trading platforms, market makers, institutions, and cross-border payment users that require on-chain settlement in USD and redeemable reserve guarantees; sellers provide financial infrastructure for short-term U.S. Treasury bonds, cash custody, auditing, compliance, blockchain settlement, and liquidity. If the license is ultimately granted, USD1 could enhance institutional access capabilities due to federal oversight; however, capital, liquidity, review, and sanction compliance will increase operational costs and subject reserve assets, redemption mechanisms, and related transactions to higher transparency pressures.

Source: Public Information