Cryptocurrency: US bankers want to block Sony’s stablecoin

Everyone has their own business! The recent passage of the GENIUS Act by the United States Congress paved the way for a regulatory explosion in the field of stablecoins . This situation is largely supported by established issuers such as Circle (USDC) and Tether (USDT), but it is also apparently being considered by some unexpected players such as Sony Group. Indeed, its subsidiary, Sony Bank, has applied for a license with the Office of the Comptroller of the Currency (OCC). An initiative that is not liked at all to American bankers…

Key points of this article:

• A subsidiary of Sony Bank has filed an application with the OCC (Organizational Currency Exchange Commission) for approval to issue stablecoins, causing shock among American bankers.
• The ICBA strongly opposes Sony’s move, calling it an “unacceptable reinterpretation” of federal law, while Coinbase supports Sony in its fight against traditional banking pressure.

The Japanese giant’s stablecoin upsets American bankers Is he going to Sony become a major player in the stablecoin sector? It question should be placed after filing an application for authorization for its Sony Bank subsidiary with the Office of the Comptroller of the Currency (OCC).

This one procedure required for the release of this type digital currency backed by the dollar, as required by the recently adopted The law of GENIUS . That is why it also affects other leading companies such as Coinbase, Crypto.com, Circle , Ripple , Bridge (Stripe) and Paxos .

However, it seems that this one initiative applied to the Japanese giant of the electronics industry, not to everyone like . Indeed, the national trade association representing small banks ICBA, just submitted a formal letter to the OCC. This letter contains a request to the regulator block this request which she believes “unacceptable rethinking” federal law.

“This approach appears to be designed by Sony Bank to take advantage of the US banking charter without being subject to the full spectrum of US banking regulation.”

Letter sent by OCC to US regulator – Source: The Independent Community Bankers of America (ICBA)

Sony’s desire to become a bank is clearly not to everyone’s liking – Source: Account X

Coinbase supports Sony’s initiative and criticizes bankers According to ICBA, this authorization application can “lead to confusion and harm to consumers in the event of insolvency.” This is explained by the fact that stablecoin Sony shares many characteristics with bank deposits, such as electronic transfers, point-of-sale charges and one-time payments.

However, according to ICBA, the Japanese group is keen avoid federal deposit insurance and Community Reinvestment Act requirements applicable to traditional banks . And this is obviously unacceptable to the respected American bankers, who are essentially to blame Sony in the desire to have advantages bank without it shortcomings .

Obviously not everyone interpret events equally, and Coinbase clearly supported by Sony. It should be said that the Japanese company faces the same criticism as well as the American crypto giant:

“ICBA’s opposition to Sony Bank and Coinbase’s applications for a trust charter is nothing more than an attempt by lobbyists to create regulatory barriers around their members. Competition is good for consumers and business.”

Paul Grewal, General Counsel, Coinbase – Source: Decrypt

Are American bankers trying to stifle competition before it starts? That’s exactly what Coinbase’s general counsel thinks, seeing it as simply protecting its territory. And considering the latest statements of traditional US banks we tend to agree.

Source: journalducoin.com