Community Bankers Oppose Sony’s Crypto Bank Charter Bid

The Independent Community Bankers of America (ICBA) has formally requested that regulators block Sony Bank’s application for a national trust bank charter to issue stablecoins. In a letter to the Office of the Comptroller of the Currency (OCC), the ICBA warned that Sony is attempting to circumvent traditional banking oversight through its proposed subsidiary, Connectia Trust.

The ICBA argues that Connectia’s stablecoin offering, which would involve dollar-pegged assets, reserve maintenance, and digital asset custody, shares characteristics with bank deposits while avoiding federal deposit insurance and Community Reinvestment Act requirements. They claim this approach allows Sony Bank to benefit from a U.S. bank charter without adhering to full regulatory scope.

Connectia’s plan to potentially issue debit cards raises concerns about statutory restrictions. The ICBA also questioned Sony Group Corporation’s stake in Connectia’s parent company, suggesting it warrants further investigation regarding potential regulatory implications.

The application joins a growing number of bids from crypto firms, including Coinbase, Crypto.com, Circle, and Ripple, seeking federal charters as the stablecoin market expands beyond $311 billion following the GENIUS Act’s passage in July.

The ICBA previously raised similar objections to Coinbase’s charter application. Coinbase Chief Legal Officer Paul Grewal accused lobbyists of erecting “regulatory moats.” Kadan Stadelmann, CTO of Komodo Platform, dismissed the banking lobby’s concerns as “overstated and driven by big-bank interests,” arguing that stablecoins foster financial inclusion and reduce bank-run risks.

Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility.