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
Memecoins, Regulation, and the SEC’s Changing Strategy
Crypto Regulation | Feb 12, 2025
Image: Commissioner Hester Peirce interview (Bloomberg Crypto)
SEC’s New Crypto Task Force and What It Means for Memecoins and Digital Assets
Bloomberg Crypto interviewed Commissioner Hester Peirce, the head of the U.S. Securities and Exchange Commission's (SEC) new Crypto 2.0 Task Force to discuss the SECs approach towards regulation, memecoins and digital assets. Below we summarize the key takeaways for your review - watch the full video for more.
SEC is Shifting Away from Regulation by Enforcement
The focus is now on making crypto rules clearer and avoiding the heavy enforcement actions of the past. Peirce says that the new leadership at the SEC wants to set policies first and then enforce them, rather than using lawsuits as a way to define the rules.
“We have been using enforcement cases to set regulatory policy. We're trying to shift that. So we actually set policy and then we bring enforcement cases as needed.”
See: Trump Picks SEC Chair, Shakes Up Crypto and Oversight
One of the first goals of the task force is to determine which digital tokens fall under SEC regulation. The SEC is figuring out which assets it can regulate, which might belong under the Commodity Futures Trading Commission (CFTC), and which are outside any current laws. This new approach is meant to provide clarity for businesses and investors.
Memecoins Likely Outside SEC’s Jurisdiction
Peirce admitted that many memecoins may not fall under the SEC’s jurisdiction. She said that each token would be reviewed individually but generally most memecoins do not meet the legal definition of securities. This includes the recently launched $TRUMP memecoin that shot up to $27 billion in market value or the former first lady's $MELANIA memecoin, too (NB: now whether or not political figures should be involved or memecoins or not is another thing). This means the SEC may not have authority over them unless new laws are passed. This means that memecoins could remain largely unregulated unless lawmakers step in.
“Facts and circumstances matter. We always have to look at the facts and circumstances, but many of the meme coins that are out there probably do not have a home in the SEC under our current set of regulations.”
This is a big pivot from the previous SEC leadership who often argued that most crypto tokens were unregistered securities and took significant legal actions against major exchanges and token traders like Coinbase, Uniswap, or Robinhood to name a few.
See: Regulatory Clarity for Crypto: Sacks Unveils U.S. Strategy
So what's the impact? Many believe that it's a good thing, arguing that memecoins are more like collectible items rather than investments. David Sacks, the White House's chosen crypto czar, said “Memecoins belong in a category of digital collectibles, not securities,” suggesting that they may not need (heavy) regulation. On the flipside, if memecoins remain largely unregulated, there will be more memecoin scams/rugpulls, increased volatility (wild price swings) and no safeguards for investors against manipulation.
Congress and the Future of Crypto Regulation
As the SEC adjusts its stance on crypto, Congress is also working on new laws that could define how digital tokens are classified. Lawmakers are debating whether certain tokens should be treated as securities, commodities, or something else entirely. Peirce has emphasized that the SEC’s job is to identify gaps in existing regulations but ultimately, it'll be up to Congress to decide how these assets should be regulated.
“And then it's up to Congress to fill that in. And of course, Congress is working in parallel. They're working on legislative efforts to provide more clarity.”
See: SEC Launches Crypto 2.0 Task Force Led by ‘Crypto Mom’
This suggests that any major changes to crypto regulation will likely come from lawmakers, not the SEC.
Key Takeaways
- The SEC is changing from relying on lawsuits to regulate crypto and is now focusing on creating clear rules first.
- Since many memecoins do not fit the SEC’s definition of securities, they might not be regulated unless Congress introduces new laws.
- People investing in memecoins could experience extreme price swings, scams, and little to no legal protection.
- Lawmakers are drafting new regulations to determine whether different cryptocurrencies should be treated as securities or commodities, which will shape the future of the industry.
Outlook
The SEC is focusing on policy clarity before enforcement, largely making it easier for businesses and investors to operate in crypto markets without the fear of sudden legal actions. Memecoins remain in a gray area but likely outside the jurisdiction of the SEC. Without clear regulations, they could thrive as speculative assets or face scrutiny if lawmakers introduce new rules.
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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CFTC to Launch Digital Asset Pilot Under Acting Chair Pham
Regulation | Feb 10, 2025
Image: Pixabay/WorldSpectrum
CFTC Advances Digital Asset Pilot Program With Industry Giants
The U.S. Commodity Futures Trading Commission (CFTC) is launching a pilot program to test how digital assets like stablecoins can be used as collateral in financial markets. The initiative is being led by Acting Chair Caroline Pham and will explore how blockchain technology can improve market operations while maintaining oversight. To support the initiative, the CFTC is hosting a Crypto CEO Forum to launch the digital asset markets pilot including executives from industry giants such as Circle, Coinbase, Crypto.com, MoonPay, and Ripple. By working directly with industry experts to test how digital assets function in practice, the pilot aims to determine of blockchain financial products can indeed make transactions faster, reduce risks, and improve overall market stability.
Caroline Pham’s Leadership and Regulatory Shift
On January 21, 2025, Caroline Pham was appointed Acting Chair of the CFTC, replacing former Chairman Rostin Behnam. Her appointment reflects a more structured and collaborative approach to digital asset regulation. Pham has already made some moves since taking office. Notably, she's reoriented the Enforcement Division to focus on fraud prevention and investor protection instead of broad enforcement actions against digital assets. She's also appointed Harry Jung as Acting Chief of Staff, overseeing CFTC engagement with crypto, decentralized finance, and tokenization initiatives. And of course, she's progressed the digital asset pilot program (the focus of this article), which was stalled under the previous leadership.
Recent GMAC Guidance
The November 21, 2024 the Global Markets Advisory Committee (GMAC) issued guidance outlining that tokenized non-cash collateral, such as government securities and corporate debt, can be used under existing CFTC rules without requiring regulatory changes. It highlighted that distributed ledger technology was simply a new way to record and transfer assets, and firms can rely on their existing risk management policies to integrate it. The guidance recommended allowing market participants to tokenize and use eligible collateral while ensuring compliance with current legal and operational frameworks. See the slide presentation and video.
CFTC’s Digital Asset Pilot
The pilot program is setup to evaluate whether tokenized assets can function as collateral in regulated financial markets. Traditionally, firms rely on cash, government bonds, or highly liquid securities for margin requirements. The CFTC is focused on practical implementation rather than sweeping regulatory changes, so it's important that the program does not require new regulations, as existing legal frameworks allow firms to assess risks and manage tokenized collateral. Key aspects of the pilot include:
See: Responsible AI in Finance: CFTC’s New Framework
- Test tokenized versions of government securities, corporate debt, and money market funds as collateral
- Evaluate risk management standards for digital assets used in financial markets
- Assess compliance frameworks for integrating blockchain-based assets into regulated transactions
Note that in 2023, Caroline Pham introduced the concept of a digital asset pilot to explore applications in a regulatory sandbox but it was more theoretical and regulatory acceptance was uncertain. This new tokenization pilot is now more structured and being implemented under Pham's leadership and is advancing in collaboration between regulators and industry.
How This Could Impact Canada’s Fintech and Digital Asset Market
The CFTC’s approach may influence regulatory developments in Canada, where steady progress has been made in digital asset regulations particularly through the Office of the Superintendent of Financial Institutions (OSFI).
- In April 2023, OSFI launched a stablecoin consultations (fiat referenced crypto assets) to assess risks to inform future policy.
- In July 2023, OFSI proposed draft guidelines for capital and liquidity rules for banks and insurers holding crypto-assets. Final guidelines are expected in early 2025 which will look to align Canada with global standards.
- In November 2023, OFSI consulted on Public Disclosure Rules that would require financial institutions to disclose their crypto-asset exposures. New disclosure rules for banks are set to take effect in early 2026, which align with international best practices.
Additional digital assets are currently being researched and tested through sandbox programs run by provincial regulators and the Bank of Canada. Canadian fintech companies should be on the watch to see if the U.S. establishes stablecoins as valid collateral. If so, similar policies could be explored here in Canada.
See: Tech Leaders Launch Build Canada for Innovation Policy Reform
The tokenization of real world assets and financial instruments would open up new efficiencies for cross border financial transactions. Canada's financial regulators such as the CSA, IIROC, and the Bank of Canada might benefit from the CFTC's strategy and pilot program learnings and inform future policy of digital assets in Canada.
Outlook
The CFTC is in the process of finalizing the operational details of the pilot and are hosting the CEO Forum to determine how the program will be implemented and identify key risks. The data collected from market participants will be used to evaluate potential regulatory frameworks for digital assets in the U.S. and worldwide. This is a big shift in digital asset regulation. That is moving from an enforcement first approach to structured implementation testing and collaboration. If the pilot is successful, tokenized financial instruments could become a standard feature of global markets, a path that Canada would potentially follow.
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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Hester Peirce’s Crypto Taskforce Roadmap: What’s Next for Regulation?
Crypto Regulation | Feb 6, 2025
Image: Commissioner Hester M. Peirce
SEC's New Crypto 2.0 Task Force Begins Journey Towards Regulatory Clarity in Digital Assets
On Jan 21, 2025, the U.S. Securities and Exchange Commission (SEC) announced the formation of a Crypto 2.0 Task Force dedicated to the development of a comprehensive and clear regulatory framework for digital assets. The task force, led by Commissioner Peirce (aka Crypto Mom), has recently published a post on the SEC's website titled 'The Journey Begins' that serves as the starting point of much work ahead, and sets the tone and direction of a new chapter of crypto regulations in the United States.
For years, the SEC has been criticized for its "regulation by enforcement" approach and thumbing down innovative crypto firms without providing a clear regulatory framework. The result has been a train wreck that caused frustration among crypto entrepreneurs and investors who were forced to walk down a path of uncertainty and unnecessary risk.
Peirce acknowledged these challenges in her new role:
"It took us a long time to get into this mess, and it is going to take us some time to get out of it."
Where They Want to Go
The newly formed Crypto Task Force is chaired by Peirce with Richard Gabbert serving as Chief of Staff and Taylor Asher as Chief Policy Advisor. They are charting a new course with a mandate that includes:
See: Regulatory Clarity for Crypto: Sacks Unveils U.S. Strategy
- Engaging with SEC staff and the public to inform crypto regulation
- Developing clear registration pathways for digital asset firms
- Establishing disclosure frameworks for crypto projects
- Reassessing enforcement strategies to ensure a more effective regulatory approach
- Coordinating with other regulators like the Commodity Futures Trading Commission (CFTC) and international agencies
10 Key Areas of Focus (Roadmap)
In her post, Commissioner Peirce laid out the following ten priorities that will guide the task force's work:
- Defining Crypto Assets – Clarifying which digital assets qualify as securities
- Jurisdictional Boundaries – Determining which aspects of crypto fall outside the SEC's authority
- Token Offering Relief – Exploring temporary exemptions for compliant crypto projects
- Registration Options – Modifying existing rules like Regulation A and crowdfunding to make token registration easier
- Broker-Dealer Policies – Updating rules to allow broker-dealers to handle both security and non-security tokens
- Custody Solutions – Establishing safe and compliant ways for firms to store crypto assets
- Crypto Lending & Staking – Providing clarity on how these activities fit into securities laws
- Crypto ETFs & ETPs – Offering clear guidelines on approving crypto exchange-traded products
- Clearing & Transfer Agents – Addressing how blockchain technology interacts with these roles
- Cross-Border Collaboration – Creating international regulatory sandboxes to test crypto innovation
See: UK’s Regulatory Crypto Roadmap from Sandbox to Mainstream
All told, the task force is a welcomed policy shift in how in the SEC approaches crypto. One that is moving from a reactive enforcement by regulation approach to one that is a proactive regulatory framework. One of transparency and stakeholder engagement. However in her note, Commissioner Peirce stresses the need for patience:
"We need to do this in an orderly, practical, and legally defensible way."
The Journey Ahead
The SEC has launched a consultation process, inviting crypto industry participants such as startups, investors, developers, and policymakers to share their insights and help create the future of digital asset regulation (i.e., voice concerns, suggest improvements), and engage directly with regulators to build a robust and effective framework. Crypto Mom and the Task Force highlight that successful regulation requires collaboration.
See: Balancing Fintech Innovation and Regulation
The SEC has launched a dedicated webpage for the crypto task force and welcomes feedback via email (crypto@sec.gov). Industry participants are encouraged to submit written comments, request meetings, and take part in discussions about potential regulatory changes. With active participation from the crypto community, we're hopeful that the final destination benefits all stakeholders in the digital asset ecosystem.
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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Regulatory Clarity for Crypto: Sacks Unveils U.S. Strategy
Crypto Regulation | Feb 5, 2025
Image: Freepik/wirestock
U.S. Crypto Czar, David Sacks, Unveils New Crypto Strategy: Key Takeaways from Inaugral Press Conference
President Trump's newly appointed 'Crypto Czar', David Sacks, held his inaugural press conference yesterday to outline the administration's vision for Bitcoin and digital assets, signalling a positive shift in U.S. policy. One that provides clear and transparent regulation and policies that will make the U.S. the global leader in digital assets and crypto. Below are the key takeaways from the event.
1. Regulatory Clarity
During the conference Sacks addressed the elephant in the room -- that is the lack of regulatory clarity, by saying he's spoken to countless of crypto entrepreneurs who expressed, "The number one thing founders have told me they need is clarity. They just want to know what the rules are so they can follow them." Sacks announced the formation of a federal digital asset working committee dedicated to developing a regulatory framework that balances oversight with innovation. The working group's mandate includes establishing rules for digital asset issuance and operations with a particular focus on stablecoins.
This approach is most welcomed by anyone in crypto, as the SEC of the prior administration faced criticism for ambiguity and regulating by enforcement, which stifled innovation in the U.S. digital asset ecosystem.
2. Stablecoins and the Future of the U.S. Dollar
Stablecoins were clearly a focus at the press conference. Senator Bill Hagerty introduced a new bill known as the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act that would create two levels of oversight for stablecoin issuers. Large companies holding more than $10 billion in assets would be regulated by federal authorities, while smaller issuers would continue to be supervised at the state level. The bill also requires stablecoin issuers to provide monthly reports on their reserves to ensure that they have suitable backing, enhance transparency and trust, and strengthen the role of the U.S. dollar in digital finance.
See: OpEd: Draft U.S. Bill on Stablecoins Highlight Differences with CBDCs
Stablecoins play an imperative role in cross-border payments and decentralized finance. By incorporating stablecoins into the regulatory framework, the U.S. plans to position the dollar as a dominant force in the digital economy to ensure capital flows through regulated U.S. channels rather than offshore alternatives.
3. Bipartisan Support - House and Senate Join Forces
Previously, U.S. crypto regulation was fragmented across agencies like the SEC and CFTC, causing considerable friction. Now, there's a bipartisan working group with members from the House and Senate's Financial Services, Banking, and Agriculture Committees all working together aiming to create a unified comprehensive legislative approach. Lawmakers including Senator Tim Scott and Representative French Hill emphasized the importance of keeping innovation in the U.S.
4. Exploring a U.S. Bitcoin Reserve
Czar Sacks confirmed that the administration is actively evaluating a Strategic Bitcoin Reserve. While details are limited, such a move is akin to the government considering Bitcoin as part of its national reserves, similar to how central banks hold gold today. If implicated, it would legitimize Bitcoin's role as a reserve asset, boost institutional confidence, and increase demand for bitcoin and digital assets broadly. But it's early days and requires further research and political/financial support.
What's Next?
The administration discussed plans for a market structure bill aimed at providing clear regulatory guidelines for digital assets. This proposed legislation will likely be modelled after the Financial Innovation and Technology for the 21st Century Act (FIT21), which previously passed the House with bipartisan support.
See: SEC Enforcement Director Grewal On Crypto Regulation
Senator Tim Scott, Chairman of the Senate Banking Committee, highlighted the urgency of this initiative and that both the market structure and stablecoin bills are priorities for the administration's first 100 days, and that the stablecoin bill would likely advance first followed by the market structure legislation.
Wake Up Call for Canada
This press conference marks the turning point in crypto regulation in the U.S. towards a pro-innovation, regulation-driven digital asset ecosystem. This shift raises an important question. How will these regulatory developments impact Canadian companies operating in both markets? Canada should not be left behind and consider adopting a structured framework to support and retain innovation in the crypto fintech sector.
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 ETF Battle Intensifies with XRP Dogecoin and Solana
Crypto | Feb 3, 2025
Image: Freepik/jcomp
Crypto ETF Competition Heats Up as XRP, Dogecoin, and Solana Gain Traction
Canada’s Purpose Investments announced that they officially filed a preliminary prospectus to Canadian regulators to launch an XRP exchange-traded fund (ETF), which may beat American competitors to market. The proposed XRP ETF will provide investors with direct exposure to XRP through a regulated investment vehicle, which further expands on its pioneering role of launching the world's first Bitcoin and Ether ETFs in the crypto sector in early 2021.
Som Seif, Founder and CEO of Purpose Investments:
"At Purpose, we remain steadfast in our commitment to innovation and to bridging the gap between traditional and decentralized finance. As XRP sees increasing adoption and institutional interest, we believe an ETF can offer investors a transparent and familiar way to access it within a regulated framework."
See: BlackRock Expands IBIT Bitcoin ETF Offering in Canada
Although this would be North America’s first spot XRP ETF, similar products already exist overseas such as Swiss-based 21Shares XRP ETP (AXRP), which trades on several European exchanges and is fully backed by XRP with currently $500 million USD AUM.
At the same time, U.S. firms such as Grayscale, Bitwise, WisdomTree, Canary Capital, and 21Shares have all submitted applications to launch their own XRP ETFs however the SEC has yet to greenlight any of these proposals. Approval of XRP ETFs in the U.S. is still being held up by the legal saga between Ripple and the SEC. Most recently, the SEC has filed an appeal against a previous court ruling that partially favoured Ripple, with Ripple’s response due by April 16, 2025. As a result, many industry experts believe that Canada’s more favourable regulatory stance could help Purpose Investments get its product to market first. Time will tell.
XRP isn’t the only crypto ETF game in town. Bitwise recently submitted a filing for a Dogecoin ETF, which would be the first meme-based digital asset ETF. Also, the Chicago Board Options Exchange (CBOE) has made it's third attempt to gain approval for a Solana ETF.
New Sheriff In Town
There's no question that the return of Donald Trump to the White House is promising for a crypto-friendly regulatory approach in the United States, as compared to the previous administration's SEC's regulate by enforcement approach under Gary Gensler. Thus, many experts are hopeful that this new regulatory shift will accelerate the approval process for the numerous crypto ETFs on hold in the queue including XRP, Dogecoin, and Solana.
See: Trump Media’s Patriot Economy Expands into Fintech
The change in regulatory sentiment can be seen on Polymarket where the probability of an XRP ETF getting approved in the U.S. in 2025 has risen to 80%.
Adding to the regulatory discussions, David Sacks, the U.S. Digital Asset Czar, is set to host a press conference on the future of digital assets tomorrow at 2:30PM ET, which may provide insights into the governments views of crypto regulations and ETF approvals.
Closing Outlook
With both Canadian and U.S. regulators reviewing applications and a new sheriff in town, investors are watching the developments closely. The potential approval of multiple crypto ETFs would significantly improve market access to a new basket of cryptocurrencies while boosting adoption and liquidity for digital assets.
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 Rescinds SAB 121, Allowing Banks to Custody Bitcoin
Crypto Regulation | Jan 24, 2025
Bye Bye SAB 21 -- Hello SAB 122, Banks Can Now Securely Custody Cryptocurrency Assets
On January 23, 2025, the U.S. Securities and Exchange Commission (SEC) cancelled the controversial Staff Accounting Bulletin No. 121 (SAB 121) and replaced it with an updated SAB 122. This move addresses the concerns about the accounting treatment of digital assets, opening the door and making it easier for banks, fintech companies, and crypto custodians to legally provide cryptocurrency custody services.
Key Insights
- The problem with SAB 21 is that it required all financial institutions such as banks, fintech firms, and crypto custodians to record customer crypto assets as liabilities on their balance sheets, inflating the financial and operating risks (of doing business with crypto). This accounting treatment discouraged banks from offering custody services for crypto because it inflated their liabilities making their financial positions look risky, impacting regulatory compliance.
- Now with the new SAB 122, financial institutions can now report their services more accurately without inflating liabilities by following well known accounting Financial Accounting Standards Board (FASB) rules in the U.S. or similar international standard.
See: Trump Signs New Order for Crypto Rules, Bans CBDCs, Eyes Asset Reserve
- The updated bulletin reminds entities to maintain clear and detailed disclosures that allow investors to understand obligations related to the company's responsibilities to safeguard crypto assets, such as detailing operations, potential risks, and management practices.
- The rescission is to be applied retrospectively, starting from December 15, 2024 with options for early adoption.
SEC Commissioner Hester Peirce Reaction on X:
"Bye, bye SAB 121! It’s not been fun" -
Why it Matters
The rescission of SAB 121 further highlights the regulatory pivot currently evolving on digital assets and their imminent role in mainstream finance and broader financial landscape. It could attract billions of dollars in institutional investments into crypto markets, further bridging the gap between traditional versus digital finance while boosting innovation and the credibility of cryptocurrencies.
See: SEC Launches Crypto 2.0 Task Force Led by ‘Crypto Mom’
This development could set a precedent for other jurisdictions to follow. As regulatory clarity improves, crypto market potential as a core piece of the global financial ecosystem grows stronger.
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 Signs New Order for Crypto Rules, Bans CBDCs, Eyes Asset Reserve
Crypto Regulation | Jan 23, 2025
Image of the White House Executive Order
Trump Signs Executive Order to Boost Crypto Innovation, Ban CBDCs, and Explore a U.S. Digital Asset Reserve
O January 23, 2025, President Donald Trump made good on his promise to the crypto sector by signing a new executive order titled "Strengthening American Leadership in Digital Financial Technology" aimed at boosting innovation, providing regulatory clarity, banning the establishment of Central Bank Digital Currencies *CBDCs) and protecting financial freedom, and exploring a national digital asset 'stockpile' (read: reserve).
Key Provisions of the Executive Order
- The executive order highlights the importance of blockchain and digital assets in driving U.S. innovation and economic growth, and guarantees protections for individuals and companies to access and use blockchain networks for legal purposes including self custody of digital assets.
- The order restricts any federal agencies from creating or promoting CBDCs, and outlines concerns around privacy, financial stability, and U.S. sovereignty.
- The newly formed Presidential Working Group on Digital Asset Markets to evaluate the potential of creating a national digital asset reserve that could also include cryptocurrencies that were lawfully seized by federal agencies.
- The order ensures that all law abiding individuals and businesses have fair access to banking services to address the long standing concern that regulators are trying to keep crypto out of the banking industry.
- Trump's executive order revokes Biden's previous executive order 14067 on responsible development of digital assets, and Treasury Department frameworks, signalling a significant policy shift.
- The order promotes lawful, U.S. dollar-backed stablecoins to strengthen U.S. dollar sovereignty and support their global growth as a secure digital asset.
New Presidential Working Group on Digital Asset Markets
A key component of the order is the establishment of a Presidential Working Group on Digital Asset Markets which includes leaders from the Treasury, Justice Department, Commerce, and other major federal agencies. Within 180 days, the group will propose a federal framework to regulate digital assets focusing on structure, consumer protection, and risk management.
See: SEC Launches Crypto 2.0 Task Force Led by ‘Crypto Mom’
Note the Presidential Working Group is different than the SEC's Crypto 2.0 task force led by Commissioner Hester Peirce who is tasked with establishing a clear regulatory framework for crypto, addressing issues like market integrity and investor protection within the scope of the SEC.
Industry Reactions
A mix of enthusiasm and skepticism.
Katherine Kirkpatrick Bos, General Counsel at StarkWare told MarketWatch:
“has been a very positive stretch. I honestly don’t even know how to process this much good news for crypto at once.”
David Sacks, Chair of the newly formed Presidential Working Group on Digital Asset Markets said at an industry event:
“The war on crypto is over. This is the beginning of America reclaiming its position as the world’s innovation leader.”
See: U.S. Bets Big On Crypto and What It Means for Canada
Nathan McCauley, CEO and co-founder of crypto company Anchorage Digital on Reuters:
"Today’s crypto executive order marks a sea change in U.S. digital asset policy. By taking a whole-of-government approach to crypto, the Administration is making a significant first step toward writing clear, consistent rules of the road."
Some critics have raised ethical concerns over the launch and promotion of Trump's meme coin $Trump, due to conflicts of interest. They also have questions about the long term implications and market oversight.
Closing Outlook
This executive order positions the U.S. as a serious player in the global crypto space. By banning CBDCs, protecting industry access to banking, and proposing a strategic Bitcoin reserve, President Donald Trump and his administration are making a bold and clear statement about their vision for the future of finance.
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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