In brief
- The ICBA says Sony Bank’s charter would let it issue deposit-like stablecoins outside traditional banking rules.
- The group’s concerns over Connectia Trust are “overstated and driven by big-bank interests,” an expert told Decrypt.
- Crypto firms, including Coinbase, Circle, and Ripple, are pursuing similar charters.
The Independent Community Bankers of America (ICBA), a national trade association representing small banks, has asked regulators to block Sony Bank’s bid for a national trust charter to issue stablecoins.
In a letter sent last week to the Office of the Comptroller of the Currency, the group warned the Japanese financial giant is exploiting regulatory loopholes to bypass traditional banking oversight.
