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 Regulations
XRP Price After Ripple vs SEC Lawsuit – Impact & Market Outlook
Aug 29, 2025
The Ripple vs. SEC lawsuit has been one of the most closely watched legal battles in the cryptocurrency industry. After nearly five years of uncertainty, the U.S. Securities and Exchange Commission (SEC) reached a settlement with Ripple Labs in August 2025. Ripple agreed to pay a $125 million fine, ending a prolonged dispute over whether XRP should be classified as a security. For investors, institutions, and regulators alike, this decision marked a turning point for the digital asset.
In the wake of the settlement, XRP surged above $3.30 before stabilizing slightly lower, with trading volumes and institutional interest spiking sharply. With regulatory clarity now in place, the market is assessing whether XRP is poised for sustained growth or if short-term speculation is fueling most of the momentum.
This article explores the post-settlement price action, institutional adoption trends, technical analysis, and the risks investors should keep in mind when considering XRP’s market outlook.
The Ripple vs SEC Settlement Explained
The legal battle began in December 2020 when the SEC accused Ripple Labs of conducting an unregistered securities offering through sales of XRP. Ripple countered that XRP was a digital asset designed for payments, not an investment contract. For years, this uncertainty suppressed investor confidence and limited XRP’s integration into mainstream financial institutions.
On August 8, 2025, the SEC and Ripple reached a final settlement. Ripple agreed to pay a $125 million fine, without admitting or denying wrongdoing. Crucially, the deal provided regulatory clarity: XRP is not classified as a security when traded on secondary markets, removing a major barrier for U.S. exchanges, institutional investors, and payment providers.
This resolution immediately influenced market sentiment, driving a strong rally in XRP and opening the door for broader adoption.
XRP Price Action Post-Settlement
Following the announcement, XRP surged above $3.25, peaking near $3.32 before stabilizing in the $3.14–$3.22 range. Trading volumes spiked more than 200% in 24 hours, surpassing $12 billion. This surge reflects renewed confidence from both retail and institutional investors.
For investors tracking digital assets, monitoring real-time benchmarks such as XRP price USD provides valuable insight into ongoing volatility and market sentiment. The legal clarity appears to have removed a key ceiling that previously capped XRP’s growth potential.
Additionally, derivatives markets saw a 15% increase in open interest, reaching nearly $6 billion. This suggests traders are positioning for further moves, with many anticipating bullish continuation.
Institutional Interest and Adoption
One of the most significant outcomes of the settlement is the restoration of institutional confidence in XRP. For years, major U.S. exchanges delisted the token due to regulatory risk. Now, with clarity from the SEC, institutions are showing renewed interest.
Trading firms and liquidity providers have increased exposure, and some payment service providers are considering XRP as a cross-border settlement tool once again. This institutional momentum mirrors broader trends in the crypto market, where regulatory clarity often leads to higher participation. For context, comparing digital benchmarks such as Bitcoin price USD against XRP can provide perspective on how investors weigh opportunities between established leaders and high-upside altcoins.
Financial institutions are particularly interested in XRP’s utility as a bridge currency for remittances and international payments. With legal uncertainty resolved, the token could see renewed integration into enterprise-level payment solutions.
Technical Analysis and Market Forecasts
From a technical standpoint, XRP faces a critical resistance zone near $3.35. Analysts argue that if the token can establish this level as new support, the next upside target could reach between $4 and $5. Several market strategists point to bullish fractal patterns reminiscent of XRP’s rally during the 2017 bull market, which saw exponential gains.
Some analysts even project medium-term targets of $8, with long-term possibilities of $10 or more, provided XRP maintains strong momentum and adoption growth. These forecasts, however, remain speculative and depend on broader crypto market conditions, including Bitcoin’s trajectory and macroeconomic factors such as interest rates and regulatory policies.
Key technical indicators to watch include:
- Relative Strength Index (RSI): Currently trending near overbought levels, suggesting possible short-term pullbacks.
- Moving Averages: XRP is trading above its 50- and 200-day moving averages, a bullish signal.
- Volume Trends: Sustained high volume could confirm accumulation and institutional demand.
Market Drivers Behind XRP’s Growth
Several factors are contributing to XRP’s momentum:
1. Regulatory Clarity
With the SEC settlement finalized, U.S. exchanges can now list XRP without fear of litigation. This regulatory green light has major implications for liquidity and adoption.
2. Institutional Participation
Data shows a sharp increase in institutional trading volume, with open interest in derivatives markets climbing steadily. This suggests long-term players are taking positions rather than short-term speculation alone.
3. Broader Crypto Market Conditions
XRP’s rally is occurring in a context where Bitcoin and Ethereum continue to dominate the sector. If Bitcoin remains strong, it often sets the tone for altcoin performance, providing XRP with a favorable environment.
4. Utility in Payments
Unlike many altcoins driven purely by speculation, XRP has practical use cases in cross-border payments and settlement. This differentiates it from tokens that rely solely on hype cycles.
Risks and Uncertainties
While optimism is high, it is important to recognize potential risks:
- Volatility: XRP has a history of sharp price swings, and the recent rally could face corrections. Sudden downturns are common in crypto markets.
- Regulatory Landscape: Although the U.S. case is settled, other jurisdictions could impose restrictions on XRP or similar tokens.
- Market Dependence: XRP’s growth may depend heavily on Bitcoin’s performance. If Bitcoin weakens, altcoins typically follow.
- Speculative Excess: Analyst projections of $8–$10 rely on technical and historical patterns, which may not play out under current macroeconomic conditions.
Investors should view XRP’s rally with cautious optimism and remember that cryptocurrency markets carry significant risk. This analysis is for educational purposes only and does not constitute investment advice.
Conclusion: What’s Next for XRP?
The conclusion of the Ripple vs. SEC lawsuit marks a watershed moment for XRP. The settlement removes years of legal uncertainty, reigniting institutional interest and sparking renewed confidence in the token’s role as a payment-focused digital asset.
In the near term, XRP’s ability to hold support above $3.35 will be critical to sustaining momentum. If successful, analysts see the potential for XRP to target $4–$5, with more ambitious projections aiming for $8–$10 in the coming months or years.
For long-term adoption, regulatory clarity could pave the way for XRP’s deeper integration into the global payments industry, aligning with Ripple’s original vision. However, investors should remain mindful of the risks associated with crypto markets, particularly volatility and regulatory changes across different jurisdictions.
See: Ripple Seeks US Bank Charter for Stablecoin Expansion
In summary, while the lawsuit’s end represents a significant milestone, XRP’s next chapter will be defined by market resilience, institutional adoption, and the broader trajectory of the digital asset ecosystem.
Always conduct independent research and consult financial professionals before making investment decisions. Cryptocurrency markets are volatile and carry substantial risks.
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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BIS Proposes Scoring Model for Crypto AML
AML | Aug 21, 2025
Image: Freepik/Sentavio
BIS Introduces AML Compliance Score Model for Crypto
On August 13 2025, the Bank for International Settlements (BIS) published a new bulletin proposing a fresh approach to anti money laundering (AML) compliance for cryptoassets. The paper suggests using the public record of blockchain transactions to generate AML compliance scores that could be applied when crypto is exchanged for fiat at off ramps.
Key Takeaways
- Traditional AML rules that rely on intermediaries are not effective for permissionless blockchains
- Blockchain transaction history can be used to assign AML compliance scores
- These scores could be checked at off ramps to prevent illicit funds from entering banks
- A scoring model could encourage a culture of duty of care across the crypto ecosystem
Why Traditional AML Approaches Fall Short for Crypto
Most AML rules today rely on regulated intermediaries like banks to perform customer checks, however that approach doesn't work well for permissionless blockchains, where records are maintained by decentralized validators instead of a single entity. Once crypto moves from an exchange to an unhosted wallet, conventional checks lose their reach. This gap is important as stablecoins have overtaken bitcoin as the main vehicle for illicit crypto transactions, accounting for an estimated 63% of criminal activity in 2024 according to both the Chainalysis 2025 crypto crime report.
How AML Compliance Scores Could Work
The BIS paper suggests using blockchain’s public history to assign compliance scores to cryptoassets. A higher score would indicate clean funds tied to verified wallets, while a lower score would suggest links to illicit addresses. Authorities could set thresholds for AML triggers, with banks, exchanges, or stablecoin issuers applying the rules at off ramps.
See: UK FCA Plans Full Crypto Licensing Regime by 2026
This scoring model could range from strict to permissive. A strict version would only allow coins from verified 'okay listed wallets'. A permissive version would block only those funds that have touched 'not okay listed addresses'. Intermediate models could combine multiple criteria, such as recent wallet history, periods of holding on allow listed addresses, or interaction with suspicious protocols.
This approach aligns with the Financial Action Task Force’s travel rule guidance for virtual assets and VASPs and complements Canada's domestic efforts by FINTRAC to strengthen monitoring of crypto transactions. By integrating compliance scores at conversion points, Canadian exchanges and banks could reduce risk while supporting innovation.
There are also implications for monetary policy and sovereignty. The BIS notes that widespread cross border use of stablecoins can undermine local regulations. Differentiating coins based on where they come from could help Canada maintain stronger controls over its financial system. In practice, clean stablecoins could trade at a premium over those with a questionable history, creating incentives for compliance.
Building a Duty of Care Culture
If compliance scores were the standard, all ecosystem participants from retail wallet holders to major exchanges would need to exercise a duty of care. That alone could spur growth of third party compliance services as the market moves to support cleaner transactions.
See: OSC Crypto Trading Platform Compliance Review Findings
Compliance scoring would increase new technical requirements for fintechs while opening the door for services and tools that help users assess risk. As Canadian and global regulators weigh next steps in crypto regulation, the BIS compliance scoring model offers an approach that combines blockchain transparency with regulatory safeguards. NCFA members can stay ahead of these changes by subscribing to the weekly NCFA newsletter for updates on compliance, policy, and fintech innovation.
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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Do Kwon Pleas Guilty as Bitcoin Nears Record High
Terra | Aug 13, 2025
Image: Freepik/Wirestock
Terraform Labs Founder Admits to Fraud While Bitcoin at Historic High, Offering Lessons for Innovators
On August 12, 2025, Terraform Labs founder Do Kwon pleaded guilty in a U.S. federal court to fraud charges connected to the $40 billion collapse of TerraUSD in 2022. The plea includes forfeiting more than $19 million and a recommended sentence of up to 12 years in prison, with official sentencing set for December 11, 2025. The development comes as Bitcoin trades near its all time high, shining a light on the incredible appeal and robustness of crypto even with major scandals lurking in the shadows.
Why TerraUSD Crumbled and Bitcoin Held Strong
The timing is ironic, if not remarkable. While one of the most infamous fraud cases in crypto history reaches its turning point, Bitcoin is showing resilience at a price near its all time high. This resilience is grounded in its transparent design and predictable monetary policy. For fintech innovators, it is a reminder that systems with verifiable trust can withstand industry turbulence and public scrutiny.
While Bitcoin is volatile it makes no promise of price stability and operates on open, verifiable code.
TerraUSD was an algorithmic stablecoin designed to maintain a $1 peg without real world asset backing. Prosecutors said Kwon misled investors by failing to disclose the intervention of an outside trading firm to restore the peg during the May 2021 depegging. The collapse revealed a complex and fragile financial system without external audits, reserve transparency, or proven crisis controls.
Integrity and Investor Protection
The Terra collapse destroyed billions in investor wealth and caused severe personal and economic consequences. The $4.5 billion civil penalty Terraform Labs agreed to in 2024 with the U.S. Securities and Exchange Commission confirms that regulators are increasingly prepared to hold firms accountable. Also Kwon still faces criminal charges in South Korea related to the collapse of TerraUSD. If he is removed from the U.S. after serving his sentence, Seoul may pursue extradition to face those charges
See: Brutal Kidnappings Target French Crypto Figures
For fintech builders, protecting investors should not be about checking off a regulatory box but rather a prerequisite for sustainable growth. Product design, public communications, and crisis response must all play a role in a culture of integrity.
Takeaway
The projects that survive and evolve into massive legacies are those that match technical innovation with foundational governance and operational integrity.
Innovation will continue to drive financial change, but trust is the asset that endures.
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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Crypto in Your 401(k)? Trump Opens the Door
Crypto Policy | Aug 11, 2025
Image: Freepik
An Executive Order Could Bring Crypto Into U.S. Retirement Plans
On August 7, 2025, President Trump signed an executive order called, "Democratizing Access to Alternative Assets for 401(k) Investors", directing U.S. regulators to explore ways to allow cryptocurrencies and other alternative assets in defined contribution plans like 401(k)s.
See: SEC Clears Crypto Staking. What It Means for Canada
While it doesn't immediately mean that Americans can directly hold crypto investments in their retirement accounts, it does instruct the Department of Labor (DOL), the Securities and Exchange Commission (SEC), and the Treasury to coordinate on new frameworks that could make it possible. If this happens, it will have significant implications for U.S investors but also for fintech innovators and regulators in Canada who are monitoring trends South of the border.
Executive Order Sets a Regulatory Process in Motion
The order requires the DOL to review and update its fiduciary guidance for retirement plan sponsors, with a specific focus on clarifying what due diligence, risk disclosure, and participant education would be required if crypto were included as an option.
It also directs the SEC to consider revisions to certain securities rules, including elements of the accredited investor framework, that could impact the packaging of crypto investment products for retirement plans.
See: Coinbase MiCA Licence Unlocks Europe Wide Crypto Access
Treasury and related agencies have been tasked with aligning tax, reporting, and compliance rules to avoid conflicting obligations. According to the official fact sheet, the review process is expected to produce proposed rule changes by early 2026.
Opportunities for Diversification and Market Access
Advocates explain that opening retirement plans to digital assets could help diversification and align with investor demand, especially among younger savers who already hold crypto in personal accounts.
This change could also create a massive new liquidity channel for the crypto sector while bringing it further into regulated financial infrastructure, as reported by Forbes.
For fintech and crypto innovators, Trump's executive order could blow up the addressable market for crypto retirement products, custody solutions, and participant education tools.
Fiduciary and Operational Hurdles Remain
With opportunity comes risks of course. The DOL has previously raised concerns about crypto’s volatility, liquidity constraints, and valuation complexities in retirement plans.
See: U.S. Crypto Week Will Impact Global Crypto Policy
Business Insider reported that plan sponsors could face elevated litigation risks if participant loses are tied to crypto holdings, especially without clear safe harbour protections. Implementation also requires custodians and record keepers to adapt their current systems for daily valuations, liquidity management, and tax reporting.
A Canadian Policy Comparison
The U.S. executive order isn't about adding more ETFs to retirement accounts. It opens the door for 401(k) participants to gain exposure to actively managed investment vehicles investing in digital assets and other private market investments, directly within a tax-advantaged plan registered with the government. This could mean direct holdings of Bitcoin or Ethereum, or participation in private crypto funds not listed on public exchanges, if fiduciaries deem them prudent and compliant with ERISA standards.
In Canada, the gap is very real today. Registered plans like RRSPs, RRIFs, TFSAs, and employer pension plans cannot directly hold cryptocurrency. The Canada Revenue Agency’s qualified investment rules prohibit digital assets themselves from being held in registered accounts, whether or not the plan is self-directed. Investors can only gain crypto exposure through qualified investments such as Bitcoin or Ether ETFs listed on a designated stock exchange, or shares of publicly traded crypto companies. Private crypto funds, unlisted trusts, or direct wallet holdings are currently prohibited in all registered accounts.
See: Stronger Teeth Needed to Protect Canada’s IP
If the U.S. implements this framework, Canadian retirement plans would be at a competitive disadvantage in offering digital asset investment innovation. For Canadian fintechs, such U.S. policy could create new product development opportunities south of the border, while providing an unprecedented case study for domestic regulators on how to balance investor protection with access to alternative assets.
Outlook
This latest crypto policy development is another wake-up call and market opportunity for Canadian fintechs and regulators. The next 12 to 18 months will determine whether or not U.S. agencies can produce rules that satisfy both innovation advocates and investor protection, fiduciary watchdogs. If they succeed, Canada’s own retirement savings design could be the next frontier for digital asset integration, and if so, they need to be ready to respond.
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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SEC Launches “Project Crypto” to Unleash Crypto Innovation
Crypto | Aug 4, 2025
Image: Freepik/brgfx
America’s Crypto Power Play Is Real and Canada Needs to Pay Attention
American crypto leadership is back and this time it is strategic. On July 31, 2025, U.S. SEC Chairman Paul S. Atkins delivered a major policy address, American Leadership in the Digital Finance Revolution, outlining a full plan to onshore digital asset innovation and modernize U.S. capital markets.
The centerpiece of the announcement is Project Crypto, a leading Commission initiative that includes new guidelines for tokenized securities, decentralized finance, crypto custody, and financial super-apps. Positioned as a generational opportunity to return blockchain finance to American soil, the strategy aligns closely with President Trump’s policy direction and has immediate implications for Canada’s competitiveness.
Paul Atkins, SEC Chair:
“We will not watch from the sidelines. We will lead. We will build. And, we will ensure that the next chapter of financial innovation is written right here in America.”
Token Issuance Will Move Back Onshore
Chairman Atkins clear states that the SEC will no longer treat most digital assets as securities and will instead create rules that clearly define asset categories.
“Despite what the SEC has said in the past, most crypto assets are not securities.”
Confusion created by the Howey Test has discouraged entrepreneurs from launching token projects in the U.S., but this new framework will encourage American participation and investment. The changes are expected to enable capital formation for crypto projects, and reduce reliance on offshore entities.
Canadian regulators have long pointed to U.S. uncertainty to justify delay. With this new clarity, the bar has been raised. Canada’s sandbox models and exemptive relief approach now risk falling behind.
“A Cambrian explosion in innovation could occur if we stay true to this course,” - SEC Chair Atkins
Rules to Support Tokenized Funds and Super-apps
One of the more significant features of Project Crypto is the SEC’s support for platforms that offer multiple services, combining trading, lending, staking, and payments under a single license. This opens the door for fintechs and broker-dealers to offer tokenized stocks, stablecoins, and on-chain financial services together.
Chairman Atkins also emphasized the SEC’s willingness to enable tokenized capital markets across all asset classes. Read NCFA’s coverage of Robinhood's tokenized securities and tokenized funds for a look at how this trend is already reshaping investment models.
Decentralized Finance Will Be Allowed to Operate in the Open
The SEC now plans to support integration of DeFi into U.S. markets. Atkins outlined a vision for DeFi platforms that do not require intermediaries, provided they meet transparency and code publication requirements. This includes automated market makers and consensus-based networks.
See: SEC Considers DeFi With Innovation Safe Harbour
For Canadian DeFi builders, it's an opportunity to create a presence in a jurisdiction that now welcomes non-intermediated finance, further challenging Canada's policy approach in the space.
Stablecoin Regulation is Now Federally Standardized
With the signing of the GENIUS Act, the U.S. has created a formal federal regime for stablecoin issuance and oversight. The SEC plans to align its rules accordingly and support market structure legislation that complements the Act.
Canada’s own stablecoin policy is still being shaped. See NCFA’s article on stablecoin regulation in Canada for current developments under OSFI.
New Flexibility for Crypto Custodians and Compliance Tools
The SEC will revise outdated custody requirements and support multiple business lines under one registration. This will make it easier for new entrants and regulated institutions to provide safe crypto custody and enable self-custody options. The Commission also highlighted support for protocols like ERC3643 that embed compliance functions directly into token standards that support tokenization of Real-World-Assets (RWA).
Inclusive Public Engagement via Crypto Task Force Roundtables
As part of its strategy to gather industry insights and boost regulatory transparency, the SEC’s Crypto Task Force will host a series of roundtables across the U.S. from August to December 2025, focusing on issues like custody, tokenization, DeFi, and trading infrastructure. These sessions reflect the agency’s intent to involve stakeholders early in the policy creating process and to include perspectives from small crypto startups and innovators
Outlook
Project Crypto is a very real operational directive to all SEC policy divisions. A coordinated national policy backed by the White House and reinforced by the President’s Working Group on Digital Asset Markets.
See: U.S. Maps Out Plan to Lead World in Crypto
For Canada and much of the world, this means the U.S. is will now be one of the preferred destinations for digital asset ventures, tokenized capital formation, and DeFi projects. Canadian stakeholders must respond with a coordinated strategy of their own that modernizes regulation, supports responsible innovation, and protects sovereignty in financial technology. Canada cannot afford to watch from the sidelines. A future of digital finance is being built now, and the center of gravity is moving.
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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U.S. Maps Out Plan to Lead World in Crypto
Crypto Regulation | July 31, 2025
Image: Strengthening American Leadership in Digtal Financial Technology, White House report
White House Releases Roadmap to Make the US a Global Leader in Crypto
On July 30, 2025, the White House released a major 160 page PDF report from the President’s Working Group on Digital Asset Markets called, "Strengthening American Leadership in Digital Financial Technology". The document lays out how the United States plans to build a clear rulebook for crypto and position itself as a leading global hub for blockchain technology, a huge change in direction from a government that previously relied on regulation by enforcement.
Clear Rules for Crypto Markets
The White House report says the US needs a stronger framework for digital asset markets. It calls on Congress to pass the Digital Asset Market Clarity Act to remove gaps in oversight. The plan would give the Commodity Futures Trading Commission authority over trading in digital assets that are not securities, while the Securities and Exchange Commission would focus on those that are securities. The two agencies are asked to provide clear guidance on custody, registration, and record keeping so that new products can launch faster without long delays.
See: SEC Policy Reversals and Crypto Case Dismissals
For fintech companies and investors, a more predictable environment is welcomed, and means that developers and platforms would know in advance what licenses they need and how to stay compliant instead of risking enforcement.
Banking Rules That Include Digital Assets
A large part of the report focuses on modern banking regulation. It urges federal banking regulators to stop blocking lawful digital asset companies from access to banking, a practice that was known as Operation Choke Point 2.0.
It also suggests a clear process for banks to gain approval for activities such as custody of crypto, tokenization of assets, issuing stablecoins, and using blockchains in financial services. If these changes are implemented, banks will have a clearer path to offer blockchain based products and services, which could expand customer access to digital assets directly through mainstream banks.
Stablecoins and the US dollar
The report confirms the importance of stablecoins that are backed by the US dollar. It points to the GENIUS Act, signed into law on July 18, 2025, as the foundation for a federal framework for stablecoins. It also calls for a law to ban central bank digital currencies in the United States, emphasizing that the private sector should lead innovation in payments.
See: Quantum Safe Stablecoins Meet Real Time Finance Needs
It suggests that the U.S. views private stablecoins as a way to maintain the dollar’s global role. It could lead to faster payments and new payment rails, but it's also a policy preference against government issued digital money.
Tighter but Modern Anti Money Laundering Standards
The Working Group recommends updating anti money laundering rules to reflect how digital assets work. The plan would clarify the reporting obligations for different types of actors, including those in decentralized finance, and protect the right of law abiding citizens to hold their own digital assets. This could make it easier for compliant companies to operate while still giving regulators more effective tools against bad actors.
Digital Asset Tax Rules
The report asks the Treasury and IRS to publish clear guidance on how taxes apply to crypto, including on staking, mining, and small day to day transactions. It also calls for Congress to adjust the tax code so that digital assets are treated consistently with other assets such as securities or commodities. Simplified tax rules could lower the cost of compliance and help bring more participants into the market.
Why It Matters
If the recommendations are carried out, the US could become a more attractive market for crypto investment and product development. Other countries, including Canada, need to watch closely, as competition for talent and venture funding heats up.
See: US House Pushes Crypto Reform Forward with Key Bills
For Canadian fintechs and blockchain companies, this development could open up opportunities for cross border partnerships but also create a more competition.
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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SEC Exploring Ethereum Standard for Tokenized Securities
Tokenization | July 21, 2025
Image: Freepik
SEC Meets Ethereum Groups on Tokenized Securities Standards
On July 16, 2025, the U.S. Securities and Exchange Commission (SEC) held a private meeting with Ethereum-linked groups including ERC-3643 Association and Chainlink Labs to explore standards for compliant tokenized securities. At the same time, SEC Chair Paul Atkins confirmed that the agency is reviewing an innovation exemption that could allow programmable compliance frameworks to operate with targeted regulatory relief. It's a new development that confirms growing regulatory support for tokenized finance, further raising the bar for Canadian policymakers to respond.
Key Developments
- SEC meets with Ethereum-based organizations
- Programmable compliance and tokenized securities standard
- GENIUS Act signed into U.S. law, and SEC exploring innovation exemption
- Implications for Canadian fintech regulation
1. SEC Engages Ethereum Ecosystem About Compliant Tokenization
In a major development during Crypto Week, the SEC held a private session with Ethereum-aligned groups, such as the ERC‑3643 Association, Chainlink Labs, the Enterprise Ethereum Alliance, Etherealize, and LF Decentralized Trust to explore the use of public blockchain infrastructure for regulated securities.
See: Peirce: You Can Tokenize Securities but Not Skip the Rules
The meeting focused on how blockchain systems can follow existing rules for verifying identities, tracking ownership, and controlling who can buy or sell tokenized securities. The groups shared technical solutions that help meet these requirements while still using decentralized public blockchains.
Dennis O’Connell, president of the ERC‑3643 Association said the SEC showed a “noticeable shift in tone” and openness to openly source industry standards.
2. Programmable Compliance: ERC‑3643 and Chainlink ACE
Two frameworks were at the center of the meeting:
- ERC‑3643 — An Ethereum token standard designed to support compliant transfers of tokenized securities by embedding identity verification, issuer registry, and onchain control mechanisms
- Chainlink Automated Compliance Engine (ACE) — allows for smart contract-based enforcement of regulatory rules across jurisdictions. It integrates existing ID systems with onchain logic and supports public and permissioned chains
See: Robinhood Tokenizes Stocks and Launches Blockchain
Chainlink Labs in a statement:
“Only Chainlink provides the compliance, privacy, cross-chain, and data infrastructure needed to scale digital asset adoption in a single platform.”
In partnership with the Blockchain Association, Chainlink recently launched Tokenized in America, a national ranking of blockchain leadership across all 50 U.S. states.
3. Policy Momentum as GENIUS Act Becomes Law
The SEC meeting coincided with Crypto Week where rapid legislative developments were taking place in Washington. The GENIUS Act was signed into law, establishing a federal framework for stablecoin regulation, and recognizing the role of tokenized payment infrastructure. It was passed alongside the CLARITY Act, which defines treatment for digital assets, and the Anti-CBDC Surveillance State Act.
SEC Chair Paul Atkins spoke publicly about the Commission’s interest in creating an “innovation exemption” that would allow compliant tokenized securities to be piloted without full adherence to legacy rules, saying:
“If it can be tokenized, it will be tokenized.”
See: Is TikTok Going Blockchain? Impact on Creator Economy
Sergey Nazarov, Chainlink co-founder:
Excited to see our industry reaching new heights and getting global adoption from governments because of the fundamental value that our technology provides.
The GENIUS Act is a huge step forward for stablecoins, forming the basis of on-chain payments for retail users in both… https://t.co/QlgtUgOHlu
— Sergey Nazarov (@SergeyNazarov) July 18, 2025
4. What this means for Canada
Canada is already evaluating stablecoins under its existing regulatory framework. The CSA classifies fiat-backed coins like USDC as “Value‑Referenced Crypto Assets” and recently allowed more time for issuers to comply. At the same time, OSFI, Department of Finance and the Bank of Canada are developing new federal rules to license stablecoin issuers to include reserve requirements, redemption, audits, and consumer protection.
See: Fintech Grows 3x Faster, 97% of Market Still Untapped
However, Canada currently lacks equivalent legal tools for programmable compliance mechanisms like ERC‑3643 or Chainlink ACE. If the SEC approves a standards-based tokenization model, Canadian fintechs will face increasing cross-border friction unless policymakers adapt quickly. NCFA previously highlighted this policy gap in its advocacy post, such as Coinbase Pushes for Tokenized Equities Approval commentary. Canadian regulators cannot fall further behind.
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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