OCC Urged to Reject Sony Bank’s Effort to Join the Crypto Banking Sector

A leading US banking group has urged regulators to stop Sony Bank’s crypto venture, warning against its plan for a national trust that would issue a dollar-pegged stablecoin . Sony stunned markets last month when its banking arm filed to form Connectia Trust , a federally chartered institution that would issue a $1-backed stablecoin, manage the reserves behind it, and provide digital asset custody and management. If approved, Sony would join a short list of major firms seeking national digital bank status, alongside Coinbase, Circle, Paxos, Stripe and Ripple. In a Nov. 6 letter to the OCC, the Independent Community Bankers of America (ICBA) said it “strongly opposes” Sony Bank’s application and argued the proposal leans on an impermissible reading of trust bank powers. Group Accuses Sony Of Seeking Bank Benefits Without Obligations Further, the group warned that customers could confuse a stablecoin with a bank deposit, even though national...

https://cryptonews.com/news/sony-bank-crypto-plan-challenged-us-banking-lobby/