The U.S. House Financial Services Committee held a hearing that day, focusing on stablecoin regulation and World Liberty Financial's banking license application. The company's ties to U.S. President Trump and his family have once again brought it into the political spotlight.

OCC Responds to Allegations of Political Pressure

OCC Administrator Jonathan Gould said allegations that he acted on behalf of Trump in the licensing process were unfounded. He stated that the political pressure he felt came primarily from Democratic lawmakers, not the White House.

Gould also stated that the OCC will process World Liberty Trust Company's application for a national trust banking license in accordance with relevant laws and ethical guidelines. Democratic lawmakers, however, continued to question the company's suitability for a U.S. banking license, arguing that its ties to foreign investors and crypto partners previously implicated in misconduct jeopardized its eligibility.

Stablecoin bill promotes supporting rules

Another key focus of the hearing was the progress of the GENIUS Act. FDIC Chairman Travis Hill said that regulators will soon introduce new rules requiring stablecoin issuers to establish customer identification procedures.

NCUA Chairman Kyle Hauptman defended stablecoins in his testimony, arguing they could make payment settlements faster, even on weekends and holidays. Democratic Representative Brad Sherman, however, stated his opposition to using stablecoins for government payments, arguing it would weaken the dollar's status.

Federal Reserve clarifies Kraken account permissions

During the hearing, lawmakers also questioned Federal Reserve Vice Chair Michelle Bowman about the access granted to the Fed's master account by cryptocurrency exchange Kraken. Bowman stated that the approval only granted "very limited" access to payment systems, initially for a period of 12 months.

She stated that the Federal Reserve will continue to monitor the situation during this period and prepare for formal rules accordingly. There is also considerable interest in whether more crypto institutions will gain similar "simplified" master account access in the future.