Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Blockchain, Crypto, Digital Assets, Tokens, CBDCs, Stablecoins, Metaverse, NFTs
Key Findings from 2025 Advanced Payments and Fintech Survey
Fintech and Payments Research Report | Nov 12, 2024
Image: Advanced Payments and Fintech Report 2025 (Edgar, Dunn and Co.)
Insights and Opportunities for Global Payments and Fintech Innovations 2025
Edgar, Dunn & Co. has just dropped the 17th edition of the 2025 Advanced Payments and Fintech Survey (103 page PDF report) digging into the latest innovations and momentum powering the global payments industry forward. The report brings together insights from a 100 senior payment professionals from around the world who explore the influence of emerging technologies like AI, IoT, and blockchain, the rise of digital banking, and the impact of alternative payment methods and Central Bank Digital Currencies (CBDCs).
See: 2024 Global Payments Growth, Trends, and Fintech’s Edge
This post by NCFA Canada highlights the key findings from the payments survey and uncovers the latest data-driven and actionable insights to propel your business forward, providing a strategic roadmap for growth.
Key Findings from the Advanced Payments Survey
The survey was hosted between May and July 2024 with responses from 100 senior payments professionals around the globe.
1. Top Use Cases for AI and Machine Learning in Payments
- 85% of respondents see AI’s primary role in risk management and fraud detection.
- 51% identified customer behavior analytics as a growing application of AI.
- 55% say automating operations for error-free and quicker payments is a priority.
2. B2B Cross-Border Payments in Play
- 52% of respondents said B2B payments are the main focus for cross-border innovations given the demand for efficient and low cost international transactions.
See: AI, Funding Shifts and Regulatory Hurdles in Fintech 2024
3. Sectoral Growth in Digital Payments
- Retail and e-commerce are expected to lead digital payment adoption (65%), with remittances (48%) and travel (46%) also ready for growth.
4. Future Growth in Payment Methods
- Digital wallets (88%) and bank transfers (57%) dominate the future payment landscape, a shift away from traditional credit card payments.
- Buy Now Pay Later (BNPL) solutions are also gaining traction, particularly among younger consumers.
5. Mobile Solutions and Instant Payment Demand
- 68% of respondents expect instant payments to become standard, as consumers demand faster and more convenient transactions.
6. Influence of Regional Trends
- Asia-Pacific leads in expected payment innovations (50%), with Europe following at 23%. Canadian Fintechs can look to these regions for inspiration in mobile and instant payments.
7. IoT’s Role in Enhancing Payments
- IoT devices for payments such as wearables and connected cars are gaining momentum, particularly in retail and automotive sectors.
8. The Role of Security in Mobile Banking
- 63% of respondents stress the importance of biometric authentication to enhance mobile banking security.
- Real-time payment features are equally critical with 57% saying these as essential for consumer trust.
9. Open Banking and Open Finance as Innovation Catalysts
- According to the majority of responders, Open Banking is remain a major driver for financial innovation that enables third party access to financial data, fuelling the rise of customer-centric financial ecosystems. Open Banking is evolving into wider initiatives like Open Finance and Open Data, creating opportunities to enhance competition and improve customer experiences. (See: OECD 2023: Key Insights on Open Finance Policies | EU: MiCA, DORA, Open Finance Framework, and Digital Euro)
Image: Freepik/rawpixel.com
Strategic Insights from the Report
1. Digital Banks and Profitability
- Digital banks have seen huge growth but most still aren’t profitable (some are).
- Around 85% struggle with high customer acquisition and operating costs.
- Cutting acquisition costs by using AI for targeted marketing can save them up to 25%.
- Automating manual processes can trim costs by 30%.
- If digital banks can get customers to make digital banks their primary accounts it can make a big difference since primary account holders contributing almost 70% more in revenue.
2. AI and Machine Learning in Payments
- AI is transforming payments with powerful tools for fraud detection, personalization, and efficiency.
- Payment processors like Visa analyze millions of transactions per second with AI, catching suspicious activity instantly and reducing fraud-related losses by up to 30%.
- AI automation has been shown to reduce payment processing times by half, saving labour costs.
See: How Real-Time Agentic AI Will Boost Fintechs
- Personalized AI-based customer service is another advantage (becoming a new standard) with approx 45% of consumers now expecting personalized digital experiences whe it comes to their financial services.
3. Blockchain as a Cross-Industry Solution
- Blockchain technology reduces cross-border remittance costs by as much as 60%, thanks to its ability to remove intermediaries and process transactions directly. This savings potential is huge for the $750 billion remittance market.
- Blockchain’s secure, decentralized structure has reduced fraud cases by up to 30% in companies using it.
- Its versatility also extends beyond finance to industries like supply chain management and insurance who use blockchain to ensure transparency and accuracy in their operations. (See: Investing in the Future of AI and Blockchain)
4. IoT Payments Transforming User Experiences
- IoT-enabled payment devices such as wearables or connected cars are set to reach $6 billion in transaction value by 2028 with roughly 20% of consumers adopting these options especially in the retail and automotive sectors. See: Autonomous IoT Transactions and Micropayments
- Visa’s connected car technology allows drivers to pay for fuel directly from their vehicles, while Samsung’s wearable devices make payments as simple as a tap.
- Businesses benefit from real-time data insights that can boost sales by up to 25% through personalized offers and loyalty programs.
5. Alternative Payment Methods (APMs) and Mobile Wallet Growth
- Alternative payment methods, especially mobile wallets are on track to overtake credit cards as the primary payment choice by 2028.
- Mobile wallets already account for nearly 60% of online transactions in Asia, showing their global growth potential. However, the lack of compatibility between wallets (especially cross border) will limit usage until interoperability.
See: The Role of Fintech in the Circular Economy
- It’s estimated that increasing wallet interoperability could boost transaction volumes by around 30% with companies like Apple Pay and Alipay leading the charge in wallet expansion.
6. Central Bank Digital Currencies (CBDCs) in Cross-Border Payments
- Central banks are exploring CBDCs but most retail CBDCs face slow adoption.
- Wholesale CBDCs show promise in reducing cross-border transaction costs by 50% according to central bank estimates.
- China has issued over 180 million digital yuan wallets reaching $250 billion in transactions, while the European Central Bank is aiming for a digital euro by 2027.
- These efforts illustrate how countries are exploring CBDCs to make international payments faster and more cost effective.
7. B2B Cross-Border Payments and Fintech’s Role in Efficiency
- Traditional B2B cross-border payments face high costs, delays, and FX fees, often adding up to 8% in extra expenses.
- Fintech solutions are addressing these inefficiencies by cutting out intermediaries and offering better exchange rates.
- Companies like Ripple and Wise save businesses around 20% in transaction fees.
- The B2B cross-border market is projected to reach $56 trillion by 2030, and fintech solutions are essential in making these transactions more efficient and affordable.
8. Open Banking’s Evolution to Open Finance
- Globally, open banking is expected to grow to a $123 billion market by 2031, with platforms like Plaid and Moneyhub demonstrating the potential for open finance to enhance financial services.
- Data from a recent PwC study indicates that 72% of global Fintech investors favor open finance ecosystems due to their potential for customer retention and revenue growth.
See: Canada’s Innovation Paradox – Strong Start, Missing Impact
- Canada lags behind in open banking adoption limiting its fintech sector’s growth as investors are beginning to look outside Canada for open finance opportunities. Embracing open finance could boost competition and consumer choice, opening doors for more innovative financial products.
- 63% of Canadian consumers are interested in services that aggregate their financial data for streamlined financial planning. However, only 15% of Canadian banks currently offer comprehensive data-sharing capabilities.
- The UK has led the way with over 7 million open banking users and a 15% year-over-year growth in payment transactions linked to open finance. Canada’s hesitant rollout could place it at a disadvantage if regulatory and technical hurdles are not addressed quickly.
9. Digital Remittance Transformation
- Digital remittance solutions like Remitly and Xoom have significantly lowered transfer fees from traditional methods 7-10% to around 2-3% rates.
- Digital remittance is growing 10% annually, especially in areas with high migration rates such as Canada, offering an affordable alternative for underserved populations.
- Digital remittance platforms support financial inclusion by reducing fees which enables remittance families to retain more income for daily needs or investment.
10. Financial Inclusion Through Innovative Payment Solutions
- Roughly 24% of the global population is still considered unbanked (typically in emerging markets).
- Mobile money and digital wallet services are addressing this gap.
See: How Fintechs Are Tackling Financial Inclusion in Canada
- Greater financial inclusion through digital payments could add $3.7 trillion to emerging markets’ GDP by 2025.
- Kenya’s M-Pesa service exemplifies how mobile finance can provide essential banking services without traditional banks. Other countries can follow suit by improving digital infrastructure.
11. Insurtech and Embedded Finance Driving Financial Innovation
- Insurtech is growing rapidly with the market expected to hit $152 billion by 2030.
- Advanced data analytics let insurers offer custom policies, adjusting based on real-time user data.
- The offering of financial services by non-financial platforms via embedded finance is helping companies improve user experiences. For example, Shopify’s embedded financing options make it easier for small businesses to access funds directly on its platform with integrated services.
12. Evolving Retail and Gig Economy Payment Models
- Personalizing retail experiences increases purchase likelihood by about 40%, making social commerce and omnichannel strategies more essential.
- Gig economy workers and small businesses want real time payments. Half of gig workers prefer platforms offering instant payouts.
- Real-time payments also reduce administrative work for platforms so transactions run more smoothly and offer a better user experience.
13. The Resilience and Decline of Cash Usage
- Cash is losing ground worldwide as digital payments rise with some countries seeing cash used in less than 5% of transactions.
- Having said that, cash still plays a key role in areas with limited digital access or where people have less trust in banking institutions.
- While cash usage may continue declining, local economies and infrastructure gaps mean it won’t disappear anytime soon.
Closing Thoughts
The convergence of emerging technologies and their adoption globally reveal major shifts in global payments representing significant opportunities for fintechs as AI, IoT, blockchain, digital banking, open and embedded finance broaden access to financial services, making corss-border transactions faster and easier than ever before.
See: Industry Reports and Research
For fintech founders and investors, the survey uncovers prime areas for growth. Companies need to prepare for a more connected financial ecosystem and high bar for speed and inclusiveness to meet today's demand. Integrating these technologies and tools is about building a future of finance that's user-friendly, secure, and accessible.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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How Account Abstraction is Transforming Digital Identity Management
Nov 13, 2024
Photo by Shubham Dhage on Unsplash
The emergence of blockchain and decentralized technology is fundamentally reshaping how we control virtual identities. In the conventional Web2 world, digital identification is controlled via centralized entities, often leading to protection risks, privateness concerns, and cumbersome person reports. However, with blockchain’s evolution, a new technique called account abstraction is coming to the vanguard, presenting more flexibility, control, and protection for digital identity management.
In this article, we’ll explore how account abstraction is changing digital identification management and its implications for customers. Additionally, we will dive into an critical topic that regularly goes hand-in-hand with identity in the blockchain space: locating the best place to store your crypto to make sure your belongings are as secure as your virtual identity.
What is Account Abstraction
Photo by Shubham Dhage on Unsplash
Account abstraction refers to a change inside the way blockchain accounts function. Traditionally, blockchain networks have two varieties of money owed:
- Externally Owned Accounts (EOAs): These are controlled by way of non-public keys and controlled by means of individuals.
- Contract Accounts: These are controlled by means of smart contracts, which execute code based on predefined good judgment.
Account abstraction permits clever contracts to address moves generally reserved for EOAs, allowing extra customizable account control. This affords more desirable protection, such as multi-signature wallets and social healing, even as enhancing the consumer revel in.
Challenges of Traditional Digital Identity Management
In Web2 environments, users rely upon centralized entities to manage their virtual identities. This setup comes with numerous risks:
- Data Breaches: Centralized platforms are appealing objectives for hackers.
- Privacy Concerns: Users lack manipulation over their data.
- Account Vulnerability: Losing right of entry to an account can suggest losing manage of one’s virtual identification.
In evaluation, decentralized systems and account abstraction provide a greater steady and user-controlled way to manage virtual identities.
Identity Management Is Changed by Account Abstraction
Account abstraction introduces several benefits for dealing with digital identity in decentralized environments, inclusive of:
See: UK Proposes Bill to Recognize Crypto as Personal Property
Customizable Security
Users can undertake multi-signature wallets, requiring a couple of parties to authorize transactions. Social recuperation structures can help users regain manipulation of debts if they lose their non-public key, offering extra safety and peace of mind.
Improved User Experience
Managing a non-public key can be complex, especially for non-technical users. Account abstraction allows for opportunity authentication techniques, consisting of biometrics or PINs, making blockchain extra handy.
Interoperability Across Platforms
Users can manage a single digital identity through a couple of decentralized programs (dApps) rather than developing separate debts for each platform, streamlining the enjoyment.
Automation and Personalization
Account abstraction allows users to automate duties, like placing transaction limits or automating fee bills, enhancing efficiency in coping with virtual identities.
Best Place To Store Your Crypto: Keeping Your Assets Safe
As digital identification control improves, safeguarding crypto assets will become just as critical. Your identity is often tied to your crypto holdings, so locating the Best Place to Store Your Crypto is vital for maintaining your property stable. Here are a few top storage options:
Hardware Wallets
Hardware wallets shop non-public keys offline, making them resistant to online hacks. They’re considered one of the most secure options for lengthy-term storage.
Cold Storage
Cold storage refers to keeping private keys offline, either in hardware wallets or paper wallets. While stable, a cold garage is greatly desirable for lengthy-term protection in place of common transactions.
Multi-signature Wallets
Multi-signature wallets require more than one approval for transactions, presenting an extra layer of protection. Account abstraction enhances those wallets by way of permitting customers to define precise permissions and limits.
Decentralized Wallets
Decentralized wallets offer clean admission to dApps and decentralized finance (DeFi) structures. While convenient, they will now not offer the same security as hardware wallets and need to be supplemented by other methods for large holdings.
How Account Abstraction Enhances Crypto Storage Security
Account abstraction now not most effectively improves identity management but also complements crypto garage safety. Users can put into effect:
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- Social Recovery: In the event of a lost key, users can get better their account with help from trusted people.
- Customizable Wallets: Users can set transaction limits and permissions, presenting higher management over crypto holdings.
These capabilities are important when thinking about the best place to store your crypto as they offer delivered safety for each identity and property.
Account Abstraction and Crypto Security in Web3
Account abstraction is transforming the way we control virtual identities in Web3, providing better safety, control, and a greater consumer-pleasant enjoyment. It’s additionally vital to pay attention to securing crypto belongings, as they are frequently tied to your digital identity. Whether through hardware wallets, bloodless storage, or multi-signature wallets, locating the exceptional region to keep your crypto guarantees that both your identity and assets are included within the evolving digital panorama.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Detroit to Accept Crypto for Taxes with PayPal
Innovation | Nov 7, 2024
Image courtesy of Freepik
Detroit Partners With PayPal to Accept Cryptocurrency for Tax Payments
Detroit just announced that starting from mid-2025, residents and local businesses will be able to use cryptocurrency to pay taxes and city fees. This makes Detroit the largest U.S. city to adopt crypto payments for government services, a big leap forward for digital finance transactions. The city is partnering with PayPal to manage these payments with the goal of bringing a modern, flexible option to handling finances, and a tech and innovation boost to the city.
See: How Fintechs Are Tackling Financial Inclusion in Canada
Detroit’s new approach gives residents who already own digital currency a direct way to handle taxes and fees, and hopes to make payments easier and more open to everyone. Crypto payments offer a way for people without traditional bank access to settle city expenses with a modern alternative. The city’s choice to accept crypto also shows its interest in attracting new businesses and skilled workers.
PayPal Partnership
Global digital payment giant, PayPal, will oversee Detroit’s cryptocurrency transactions. The partnership gives residents the comfort of using a familiar branded platform, making it easier to manage their digital payments without added confusion or worries about security or a newly run service by the local government.
Implications
Detroit’s move to accept crypto payments might inspire other cities to do the same, especially as blockchain technology becomes more common in government services. The city is also inviting tech experts and blockchain developers to pitch ideas for using blockchain in other areas of public service, looking to attract fresh ideas that could be valuable for Detroit’s future.
See: PayPal Introduces Confidential Stablecoin Transfers
Conclusion
This decision signals to residents, businesses, and the tech world that Detroit is open to fresh ideas for modernizing government services. Fingers crossed that the initiative is successful as it could lead to using crypto in government services throughout North America.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Ontario Court Blocks Binance’s Pricey Arbitration Clause
Crypto Enforcement | Nov 7, 2024
Image: Freepik/rawpixel.com
Ontario Court Rejects Binance’s Costly Arbitration, Allows Class-Action in Ontario
The Ontario Court of Appeal supported a previous court ruling against Binance’s arbitration clause. This means a class-action lawsuit against Binance can proceed in Ontario instead of being forced into costly arbitration in Hong Kong. The decision is a significant outcome for consumer rights in the world of digital finance.
See: FINTRAC Fines Binance $6M CAD for Compliance Failures
Binance, a leading global cryptocurrency exchange, required users to agree to address disputes in Hong Kong through an arbitration process. To use the exchange users had to accept the clause which is estimated to cost about $37,000 CAD excluding travel or legal fees, an amount of money that would likely be far out of reach for most users. In 2022, a group of Canadian Binance users launched a class-action lawsuit arguing that Binance violated Ontario securities law by selling crypto derivatives without following regulatory rules. Binance tried to have the case stopped, referring to its Hong Kong arbitration clause which they argued took precedence.
Court's Ruling and Implications
The Ontario Superior Court of Justice originally blocked Binance’s attempt to enforce arbitration, finding the clause unfair and a violation of public policy. Due to the high cost, the arbitration process effectively prevented users from seeking compensation making the clause unreasonable. The Ontario Court of Appeal agreed, setting a clear stance that arbitration clauses that burden users with excessive costs won’t hold up in Ontario courts.
The ruling highlights the importance of using a fair and accessible dispute resolution mechanism in the crypto sector. Companies operating in Canada must ensure that their arbitration clauses do not create unreasonable barriers for unhappy users seeking to resolve disputes.
See: OSC Pursues Binance Investigation, Unfazed by Crypto Exchange’s Departure from Canada
The decision also shows the court's willingness to overrule arbitration agreements that are designed to go around consumer protection laws.
Conclusion
Canadian courts are unlikely to enforce arbitration agreements if they impose high costs that make it hard for users to seek justice. Crypto companies operating in Canada must ensure their dispute policies follow Canadian laws and protect consumer rights. This ruling could influence future cases about arbitration clauses in the crypto industry.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Investing in the Future of AI and Blockchain
Investing | Nov 7, 2024
Image courtesy of Freepik AI
Investing in the Future of Autonomous Digital Economies
Coinbase Ventures recently shared insights into how AI and blockchain are creating a new digital economy where autonomous AI agents operate on decentralized networks. This convergence of technologies leverages AI’s analytical power and blockchain’s transparent, secure infrastructure that are powering innovative applications across finance, data, and autonomous transactions. Mashed together they promise a future where AI agents can perform secure and independent actions that will change digital and economic interactions forever.
Layers in the AI Meets Blockchain Stack
AI needs a lot of computing power to run complex models. Networks like Gensyn make this easier by letting people access extra GPU power, helping to cut costs and improve availability for AI tasks. "Machine intelligence will soon take over humanity’s role in knowledge-keeping and creation."
Data is the fuel for AI growth. Platforms like Vana allow secure data sharing (Data DAOs), giving AI systems the data they need while keeping user privacy protected.
See: California DMV Digitizes 42M Car Titles on Avalanche Blockchain
Middleware makes it possible to securely deploy and manage AI models on a decentralized network. Nous is an example of a company working on helping AI run independently on blockchain systems.
Applications are the tools that users interact with directly, showcasing what AI and blockchain can do together. Examples include Taoshi for AI-driven trading and Worldcoin for decentralized identity.
Promising Opportunities for Investors
1. Foundational Infrastructure
Platforms like Akash for computing power and Ocean Protocol for data access are helping to make AI tools more accessible and affordable. By focusing on this kind of infrastructure, you’re investing in the core building blocks and resources that will support many future AI applications long term.
2. The Agentic Web
The “Agentic Web” is an emerging concept where AI agents handle transactions, manage assets, and complete tasks autonomously (all on their own). These agents are likely to use the latest crypto payment rails that are flexible and low cost.
See: How Real-Time Agentic AI Will Boost Fintechs
Coinbase Wallet is specifically designed for these AI agents that will operate/manage/pay/transact in their own digital economies. AI agents are bound to play a big role in decentralized networks.
3. Generative AI for On-Chain Experiences
Generative AI is making it easier for people to use blockchain, such as creating smart contracts from a simple request. Companies like Replit are leading in this area, letting users type requests in everyday language, which the AI then turns into code that can be executed on the blockchain. Investing in generative AI for blockchain will help makes blockchain accessible to everyone (not just tech experts), and in doing so people will create a wide range of new use cases and value.
4. Tokenized Asset Opportunities
Tokenization allows investors to own small portions of an asset that benefit from blockchain's liquidity and trading without needing a large upfront investment. Companies such as Prime Intellect for GPUs, or Masa for Data are a couple of examples.
Outlook
The convergence of AI and blockchain is is a gateway to new, accessible, and intelligent digital economies where independent agents are transforming how people and businesses interact with the digital world. These are the building blocks of tomorrow's digital society (and just the beginning) as the possibilities are soon no longer limited to merely human imaginations.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Trump’s Win Puts SEC Chair Gary Gensler at Risk
Gary Gensler | Nov 6, 2024
Image: Freepik
With Trump’s win, SEC Chair Gensler May Step Down, Reshaping U.S. finance
Now that Donald Trump has been re-elected as President of the United States, analysts predict that Gary Gensler Chair of the Securities and Exchange Commission (SEC) will likely resign leading to a shift in the regulatory landscape.
- Historically, an SEC chair typically steps down with a new president so the incoming administration can align leadership. For example, that's what happened to Jay Clayton who was appointed by Trump but stepped down for the Biden transition to office.
- Trump publicly criticized Gensler’s tough stance on crypto at the 2024 Bitcoin conference when he announced plans to replace Gensler and make the SEC friendlier towards digital assets. Like all promises, time will tell what the outcomes will be.
See: Key Takeaways from Bitcoin 2024 Conference
- Gensler's term as SEC Chair has been full of strict crytpo oversight and a raft of notable enforcement actions, so if he exits his role and combined with Trump's pro-crypto stance we can expect more normalized (with less red tape) regulations.
- Once Trump's victory was claimed, it sent Bitcoin to a new all-time-high of $75,000, with the market voting their optimism for lighter regulation on digital assets.
When Gensler was asked about his possible departure, he said:
“I sleep fine.”
Conclusion
Beyond Gensler's anticipated resignation, digital asset stakeholders should monitor upcoming appointments and policy shifts that will influence the financial landscape and future of crypto in the United States. As for who might replace Gensler as the new SEC Chair? We can think of a few candidates of the hop. Crypto mom anyone?
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Ex-FTX Exec Avoids Prison as Bankruptcy Plan Repays Customers
FTX | Oct 31, 2024
Image: Freepik
Ex-FTX Exec Nishad Singh Dodges Jail After Aiding Prosecutors in Fraud Case While Bankruptcy Plan Sets Full Repayment for Customers
United States District Judge Lewis Kaplan decided not to send the former FTX Director of Engineering, Nishad Singh to prison for his remorse and assistance in cooperating with prosecutors in convicting his former boss, FTX founder Sam Bankman-Fried (SBF), of a multi billion dollar theft of client cash in the now bankrupt crypto exchange. Singh's testimony about fund misuse and political donations highlighted his part in the case.
See: Ex-FTX Exec Ryan Salame Starts 7.5-Year Jail Sentence
Note that another former exec at FTX and co-founder, Gary Wang, is set to be sentenced on November 20, 2024. Similar to Nishad Singh, Wang cooperated with prosecutors in SBF's trial by sharing important details about FTX’s financial wrongdoings.
Court Approves Repayment Plan
On the financial front, the court also approved a repayment plan that could allow FTX to distribute up to $16.5 billion collected from asset sales. This represents about 98% of former customers who were owed less than $50,000 and they could see full repayment of their claims, which will be paid out in cash (not crypto) to the disappointment of some people given that uptick in market gains recently.
See: Caroline Ellison Sentenced 2 Years for Role in FTX Fraud
Even FTX shareholders might recover some of their equity investment with an expected payout of $230 million. Payments are set to begin later this year once logistics are finalized.
Why It Matters
FTX case will no doubt make for a remarkable 'case study' on how insider cooperation with the courts, and a very well executed asset recovery can lead to accountability and acceptable outcomes for adversely affected customers. It may even motivate whistleblowers.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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