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
Bloomberg Invest: Banking and Blockchain Conversation with Former SEC Chair Jay Clayton and Dan Morehead of Pantera Capital
Pantera Capital | Dan Morehead | Jun 29, 2023
Image: Pantera Capital CEO, Dan Morehead
“I think the crisis is a harbinger for the future. If you think about it, banks are a terribly-designed stablecoin."
A conversation on banking and blockchain with Dan Morehead, CEO Pantera Capital Conversation and former SEC Chairman Jay Clayton at the Bloomberg Invest Conference on June 8th moderated by Carol Massar of Bloomberg:
Carol Massar: “On lending and banks, regional banks, obviously the other crisis….”
Dan Morehead: “I think the crisis is a harbinger for the future. If you think about it, banks are a terribly-designed stablecoin. “I’ll pitch you a stablecoin idea…”
Carol Massar: “Do you agree? Do you agree, Jay?”
Jay Clayton: “Banks serve an incredibly important function and they have been the source of liquidity transformation throughout the growth of our economy.”
Dan Morehead: “Let me pitch a stablecoin idea: I invest $15 million in equity in my project. Then I sell to the public $195 million stablecoins. With those proceeds I buy $210 million in risky assets. I promise the stablecoin holders incredible liquidity. With just one click on their smartphones, they can get their money back same-day – in unlimited amounts.
When asked: ‘Isn’t 13-to-one leverage kind of aggressive on a stablecoin?’
I’m honest – I tell everybody the truth: ‘If the risky assets go up, I’m keeping all the profits. But, if they fall in value, I’m going to stiff the taxpayer.’
“Unfortunately, that’s what a bank is.”
See: Global Regulatory Collaboration Key to Cryptocurrency Asset Oversight, Urges World Economic Forum
Banks as Flawed Stablecoins:
- According to Dan Morehead, CEO of Pantera Capital, traditional banks operate similarly to poorly designed stablecoins.
- Morehead argued that banks, like a hypothetical stablecoin, leverage funds at a high ratio, promising liquidity to holders while keeping profits from risky assets and passing losses onto taxpayers.
- This model, according to Morehead, is flawed and unsustainable, and recent failures in the U.S. banking system underscore this point.
Blockchain as the Future:
- Morehead emphasized the potential of blockchain technology to revolutionize the financial industry. He compared the advent of blockchain to the Medici family's use of double-entry accounting in the 15th century, which laid the foundation for modern banking.
- Blockchain, as the next evolution of distributed ledgers, offers transparency, decentralization, and resilience against crises, as demonstrated by the performance of cryptocurrencies and DeFi (decentralized finance) during recent banking failures.
- The conversation suggested that blockchain could gradually replace traditional banking systems, a transition that may already be reflected in the market valuations of cryptocurrencies compared to established banks.
Read: Dispelling FUD: Why Binance’s Exit from Canadian Crypto Markets Strengthens Canada’s Ecosystem
Regulatory Challenges:
- Clayton acknowledged the need for rigorous regulation of retail investment products, including those based on blockchain.
- Morehead, however, warned that lack of regulatory clarity in the U.S. could push innovation offshore, as has already happened with many blockchain protocols.
- Both agreed that it's in the national interest for the U.S. to embrace blockchain technology and provide clear regulatory guidance. The conversation suggested that the U.S. could learn from other countries that are actively supporting blockchain-based financial systems, including the issuance of sovereign debt.
Watch this Fireside Chat with Charoline D. Pham, Commissioner of the U.S. CFTC for a perspective on crypto regulations:
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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, 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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Amidst Regulatory Scrutiny, Institutional-backed EDX Markets Launches Non-Custodial Exchange
CNBC | Tanaya Macheel | Jun 20, 2023
Image: Freepik/pikisuperstar
EDX Markets, a new crypto exchange backed by industry heavyweights like Charles Schwab and Fidelity Digital Assets, has officially launched, offering trading in Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.
- Launch of EDX Crypto Exchange:
- Backed by financial giants like Charles Schwab, Fidelity Digital Assets, and Citadel Securities, EDX Markets has officially launched its crypto exchange.
- Offering trading in Bitcoin, Ethereum, Litecoin, and Bitcoin Cash, this institution-only exchange aims to reshape the digital asset landscape amid the heightened scrutiny of the sector in the U.S. The introduction of this exchange comes at a crucial time, following the collapse of FTX and the increasing regulatory pressure on other crypto firms like Binance and Coinbase.
See: From Collapse to Reinvention: The Emergence of a Decentralized Crypto Banking Ecosystem
- Non-custodial Model:
- Differentiating itself from the pack with a non-custodial model, EDX works with a third-party custodian, enhancing security and trust for institutional investors amid the heightened scrutiny of the crypto sector in the U.S.
- Despite the crypto market's tumultuous journey in 2022, the launch of EDX, along with BlackRock's application to introduce the first spot Bitcoin ETF, underscores the enduring institutional interest in cryptocurrencies."
- This model intends to address concerns around misuse of funds and provide a layer of security to institutions that remain curious yet skeptical about centralized crypto services providers.
- Institutional Interest in Crypto:
- Despite the regulatory uncertainties and the crypto industry's challenges in 2022, the launch of EDX signifies that institutional interest in the crypto market remains robust. This is further corroborated by BlackRock's recent application to launch the first spot Bitcoin exchange-traded fund in the U.S., signaling long-term institutional interest in the crypto industry.
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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, 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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BlackRock’s Bitcoin ETF Filing Fuels Bullish Momentum for Grayscale Bitcoin Trust
Decrypt | Pedro Solimano | Jun 19, 2023
The recent filing by BlackRock, the world's largest asset manager, to launch a Bitcoin spot price exchange-traded fund (ETF) has reignited hopes for the first U.S. Bitcoin spot ETF. This news has fuelled investor sentiment and given GBTC a significant boost, bringing it close to its 2023 highs..
- Experts believe that if BlackRock's ETF gets approved, GBTC could be the real winner.
- This is because BlackRock's success could pave the way for GBTC's conversion and resolution of its 40%+ discount on top of industry growth.
- Given BlackRock's track record and unique approach, including a redeemable trust structure, many believe that the firm's offering stands a good chance of receiving U.S. regulatory approval.
See: Majority of Professional Investors Yet to Embrace Crypto, But Nearly Half Might Enter Through ETPs
- BlackRock's move is not without controversy, with some questioning whether it is indeed an ETF.
- While some argue that it will merely be a similar trust to GBTC, others point out that this is an ETF as a redeemable trust, unlike GBTC.
- This nuanced view holds that the trust component enables BlackRock to list shares that represent a certain amount of Bitcoin, as it does not process units of Bitcoin directly at a clearinghouse.
- Regardless of the debate, investor interest in GBTC is on the rise. For example, hedge fund North Rock Digital has been consistently accumulating more Grayscale trusts over the past several weeks. They believe that the upside potential if Grayscale wins is significant, and the downside if they lose is minimal. This filing could be a catalyst to see them tighten to more rational levels.
- BlackRock's potential Bitcoin ETF have stirred up the crypto market, leading to an uptick in investor sentiment and GBTC shares.
Continue to the full article --> here
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, 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 Victory Against Ooki DAO
WSJ | Dylan Tokar | Jun 13, 2023
In a landmark ruling, the U.S. Commodity Futures Trading Commission (CFTC) has successfully held the decentralized autonomous organization (DAO), Ooki, accountable under the Commodity Exchange Act who has been ordered to pay a fine of $643,542 and shut down its website and blockchain-based application.
- This marks a significant victory for regulators, establishing a legal precedent for potential future lawsuits against DAOs. However, the challenge lies in enforcing this ruling due to the anonymous and informal organization of DAO members. DAOs, including Ooki, operate on a decentralized finance (DeFi) protocol, which allows control only through a majority vote by members. The identities of these members often remain undisclosed, making it difficult to collect the imposed fine.
See: Court Tests the Liability of DAOs and Their Makers: What You Need to Know
- Ooki DAO's protocol, which allowed users to invest and speculate on virtual currencies, was initially created by a limited liability company, bZeroX. However, the company transferred control to the DAO in August 2021. The CFTC alleged that this transfer was designed to shield the protocol from regulatory oversight.
- The ruling against Ooki DAO is part of a larger regulatory crackdown on the cryptocurrency industry, with the U.S. Securities and Exchange Commission recently launching lawsuits against Binance and Coinbase. With these legal challenges, the crypto industry is becoming increasingly subject to regulatory scrutiny.
Keywords: DAO, Ooki, CFTC, Commodity Exchange Act, DeFi, regulatory crackdown, cryptocurrency industry, Binance, Coinbase
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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, 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 Milestone: Ripple’s Successful Unveiling of SEC’s Hinman Emails
FX Street | Jun 16, 2023
Image: Pexels/Worldspectrum
In a significant moment for the crypto industry on June 13, Ripple triumphed in its extensive legal tussle with the Securities and Exchange Commission (SEC), achieving the public release of Hinman's emails.
- Ripple's Victory in Unveiling Hinman Documents:
- The ongoing SEC lawsuit against Ripple marked a significant milestone as Ripple successfully gained access to the Hinman documents. This event not only strengthened Ripple's defense by highlighting the SEC's lack of clarity on what constitutes a security but also benefited other crypto exchanges facing allegations of selling unregistered securities1.
See: Coinbase Faces Legal Action from US SEC for Alleged Market Rule Violations
- Binance and Coinbase's Partial Wins:
- Amid their legal battles with the SEC, both Binance and Coinbase scored partial victories. The presiding judge in the Binance case encouraged the SEC and Binance to negotiate and reach common ground.
- Meanwhile, Coinbase received a response from the SEC acknowledging that there were no new decisions on crypto rules, highlighting the regulator's inability to provide clarity on crypto asset regulation.
- These developments underscore the evolving relationship between regulatory authorities and the crypto industry, and their impact on the future of crypto regulation is being keenly watched by stakeholders worldwide.
Continue to the full article --> here
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, 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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From Collapse to Reinvention: The Emergence of a Decentralized Crypto Banking Ecosystem
BNN Bloomberg | | Jun 9, 2023
Image: Unsplash/Bastian Riccardi
After the collapse of Silvergate Capital Corp. and Signature Bank, which previously catered to crypto companies, a new banking landscape is emerging due to the regulatory crackdown in the US.
- The new banking system for crypto companies is fragmented and less US-centric.
- Crypto firms are now turning to smaller regional banks in the US, as well as Swiss and Asian banks, for opening accounts.
- In the UK, companies are resorting to payment-service providers. The diversification of banking-service providers implies that the new system may be more resilient even though it is less seamless.
Interview with FV Bank CEO at FFCON23: Rebuilding Trust in Web3: The Role of Custodians and Banks
New Emerging Crypto Banking Landscape
| Region | Bank | Summary |
|---|---|---|
| US | Customers Bancorp | Based in Pennsylvania, it launched a real-time payments platform in late 2021. It caters to trading firms, exchanges, and institutional investors. |
| US | Cross River | New Jersey-based, offers banking services to crypto firms like Coinbase and Circle, provides real-time money movement with a $1 million limit per transaction. |
| US | Western Alliance | Phoenix-based, has a blockchain and digital-assets team, offers real-time payments capability powered by Tassat. |
| US | Axos Financial | Las Vegas-based, opens bank accounts for some crypto firms, had plans for retail crypto trading and launching a stablecoin which are now on hold. |
| US | FV Bank | Registered in Puerto Rico, offers digital-asset custody service allowing clients to hold Bitcoin and US dollars within the same bank account. |
| Asia | Standard Chartered | Provides banking services to a select group of digital-asset service providers in Singapore, Hong Kong, and the United Arab Emirates. |
| Asia | DBS | Singapore’s biggest bank, offers deposit accounts to regulated digital-asset and blockchain firms, provides on- and off-ramping through its DBS Digital Exchange platform. |
| Asia | ZA Bank | Hong Kong’s biggest virtual bank, plans to offer token-to-fiat currency conversions over licensed exchanges, provides account services to the digital sector. |
| Europe, UK | BCB Group | London-based, offers access to its payment network, Blinc, for digital-asset outfits, similar to Silvergate's SEN, also provides business accounts, digital-asset custody and treasury services. |
| Europe, UK | Bank Frick | Liechtenstein-based, offers banking services including business accounts for blockchain and cryptocurrency sectors, trading and custody of select tokens. |
| Europe, UK | SEBA Bank | Swiss firm, provides access to trading, investments in structured products, custody, and borrowing for digital and traditional assets. |
| Europe, UK | Sygnum Bank | Operates in Switzerland and Singapore, specializes in digital assets, offering custody, brokerage, tokenization, asset-management, lending, and business-banking services. |
| Europe, UK | Clear Junction | Payment-services provider, offers financial institutions including cryptocurrency companies access to UK accounts, virtual international bank account numbers, payment networks, currency exchange and electronic wallets. |
Continue to the full article --> here
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, 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 Files Emergency Action against Binance and Founder Changpeng Zhao to Protect Customer Assets
SEC Release | Jun 6, 2023
The U.S. Securities and Exchange Commission (SEC) has taken emergency action against cryptocurrency platform Binance.US and its founder, Changpeng Zhao.
They want to freeze assets and force the return of assets held for customers. This action is to make sure customer assets are safe and stay in the U.S. while the SEC investigates further.
Read: SEC Files Charges Against Binance for Mishandling Funds and Deceiving Regulators
In this emergency move, the SEC is asking for eight things:
- They want an explanation as to why an early court order shouldn't be applied to Binance and Zhao.
- They want to freeze BAM Management's assets.
- They want the return of assets held for customers of BAM Trading or BAM Management.
- They want further actions to protect the assets of BAM's customers.
- They want to stop the defendants from destroying records.
- They want a sworn statement of specific assets from the defendants.
- They want the right to quickly get information from the defendants.
- Lastly, they want the approval for alternate ways of service.
View the original release --> here
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, 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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