Tag: applications

The post Community Banks Fight Sony’s Crypto Banking Plans appeared com. The Independent Community Bankers of America (ICBA) wants federal regulators to stop Sony Bank from getting a special license to run crypto services. The banking group sent a letter to the Office of the Comptroller of the Currency (OCC) last week, asking them to reject Sony’s application. Sony Bank wants to create a new company called Connectia Trust that would issue digital coins tied to the U. S. dollar and store crypto assets for customers. But community banks say this plan breaks federal banking rules and could hurt consumers. Sony’s Digital Banking Plan Sony Bank filed paperwork on October 6 to start Connectia Trust as a national trust bank. The OCC application shows the company would operate from 25 Madison Avenue in New York and focus on three main services: Creating stablecoins backed one-to-one by U. S. dollars Storing digital assets safely for customers Managing crypto investments for Sony companies Sony joins other major firms like Coinbase, Circle, and Ripple trying to get similar federal licenses. These applications come after President Trump signed the GENIUS Act in July, which created the first federal rules for stablecoins. Banking Groups Push Back Hard The ICBA letter calls Sony’s plan “an impermissible reinterpretation” of federal law. Mickey Marshall, the group’s regulatory counsel, wrote that Sony wants “the benefits of a U. S. bank charter without becoming subject to the full scope of U. S. bank regulations.” Community bankers worry that Sony’s stablecoins would work like bank deposits but avoid important protections. Regular bank deposits have federal insurance and banks must reinvest in local communities. Sony’s digital coins would skip both requirements. The ICBA also questions Sony Group Corporation’s roughly 20% stake in Sony Financial Group, which is Connectia’s parent company. They want the OCC to investigate if this creates controlling influence that might trigger additional banking rules.