New York — 

Regulators appointed by President Donald Trump are allowing the Trump family’s flagship cryptocurrency venture to become a bank, a move that is alarming ethics watchdogs and some lawmakers.

World Liberty Financial, a crypto firm Trump and his sons launched in 2024, announced late Friday that it received a preliminary conditional approval from banking officials to become a trust bank. Final approval hinges on a series of conditions being met.

The green light from regulators is a big win for World Liberty.

The firm won’t be able to take deposits or make loans. But the…