Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Voices
Join NCFA at Consensus 2025 Toronto May 14-16
Consensus 2025 Toronto | Feb 28, 2025
Consensus 2025 Toronto
The Premier Web3 & Blockchain Event!
📅 May 14-16, 2025
📍 Downtown Toronto, Canada
NCFA Canada is proud to be an official community partner of Consensus 2025 Toronto, the most influential conference for blockchain, crypto, and Web3! As a partner, we’re thrilled to offer our community an exclusive 15% discount on tickets.
Why Attend?
- Connect with top industry leaders, investors, and innovators
- Explore groundbreaking advancements in blockchain, AI, and fintech
- Participate in exclusive side events, networking, and expert panels
- Discover game-changing startups at CoinDesk PitchFest
- Hack, build, and pitch at the EasyA Consensus Hackathon
Registration
- Pro Pass: $700 USD (Save $250) – Access to all stages, exhibition floor, networking app, and more.
- Platinum Pass: $1,400 USD (Save $350) – Includes all Pro Pass benefits plus exclusive access to the Executive Lounge, private meeting rooms, and VIP events.
- Startup Package: $700 USD (Save $250) – Special 3-for-1 Pro Pass bundle for startups.
Prices increase on March 14 at 4 p.m. ET. Secure your spot today!
Exclusive NCFA Discount
- Register now: go.coindesk.com/NCFA
- Use promo code: NCFACANADA15 at checkout for 15% off!
See: Investing in the Future of AI and Blockchain
Don't miss this opportunity to be part of the most influential event in the crypto and Web3 space. Join us in Toronto and be a part of the future of decentralized technologies. Stay tuned for updates and join the conversation using @consensus2025 #Consensus2025 #ConsensusTO
See you there!
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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Canadian Tech Open Letter to Defend Diversity & Inclusion
Advocacy | Feb 28, 2025
Image: Freepik/rawpixel.com
A Call to Action for Canada’s Tech Industry - Defending DEI
The Canadian tech industry is facing a critical moment in responding to the push back against diversity, equity, and inclusion initiatives otherwise known as 'DEI'. Almost 1000 tech and innovation founders, executives, and investors have signed an open letter titled "Innovation Includes Everyone" in support of DEI, a initiative spearheaded by Laura Gabor (Ecologicca/What in the Tech), Avery Swartz (Camp Tech), Sarah Stockdale (Growclass), Arlene Dickinson (District Ventures Capital), and Amber Mac (AmberMac Media), among many others, to ensure Canada's tech ecosystem remains inclusive by working together to raise awareness, mobilize support, and advocate for stronger DEI commitments in the tech industry. They believe that diversity drives better ideas, stronger businesses, and a more inclusive economy.
See: Why is venture capital still ignoring women? The case for investing is clear.
There have been concerns raised recently about some of Canada’s largest tech companies quietly scaling back support for marginalized communities such as women, 2SLGBTQIA+ individuals, Black and Indigenous professionals, and newcomers. The open letter calls on the tech community and policymakers to reject efforts that undermine inclusion and to stand firm in support of equity. It emphasizes that Canada’s strength lies in its ability to embrace talent from all walks of life and that businesses should not prioritize profit over people.
Global Trend in Scaling Back DEI
Alarm bells are ringing due to a broader global shift towards policies that weaken protections for marginalized groups. The political climate, especially in the U.S. with the new Trump administration, has created uncertainty around corporate DEI initiatives, leading to some Canadian corporations with U.S. operations adjusting their commitments to avoid potential backlash. Corporations are also under economic pressure dealing with budge cuts. Some businesses are deprioritizing DEI programs citing economic survival. There are even social activist movements arguing against DEI initiatives that are causing some companies to reconsider their approach in the face of potential consumer pushback.
However, despite these rollbacks, public sentiment in Canada remains largely in favour of DEI programs. A 2020 Statistics Canada survey found that 92% of Canadians aged 15 and older agreed that ethnic or cultural diversity is a Canadian value. According to Benefits Canada, a 2023 World 50 Group survey revealed that 72% of business leaders increased their organization's investment in DEI over the past year.
The Best Talent Comes from Inclusive Hiring
A common argument against DEI is the idea of hiring the “best person for the job.” However, finding the best talent is impossible without an inclusive hiring approach. By ensuring diverse candidates are considered, businesses in fact expand their talent pool which leads to higher-performing teams. Multiple studies have found that diverse companies outperform their competitors in revenue, innovation, and employee engagement.
NCFA’s Commitment to Inclusion
The National Crowdfunding & Fintech Association of Canada (NCFA) has always championed inclusion and the underrepresented, advocating for opportunities that empower individuals and businesses alike. Through awareness-building, collaboration, and action, NCFA remains committed to closing gaps and fostering an equitable innovation ecosystem.
See: How Fintechs Are Tackling Financial Inclusion in Canada
A common argument against DEI is the idea of hiring the “best person for the job.” However, finding the best talent is impossible without an inclusive hiring approach. By ensuring diverse candidates are considered, businesses in fact expand their talent pool which leads to higher-performing teams. Multiple studies have found that diverse companies outperform their competitors in revenue, innovation, and employee engagement.
Call To Action
Canada must remain a leader in inclusive innovation. If DEI efforts are abandoned, the industry risks losing what makes it a thriving, world-class tech hub. The letter urges all Canadians to take action by supporting businesses that uphold these values and holding those that don’t accountable. The petition remains open for signatures. Join now by adding your name to the growing list of supporters at What in the Tech?, and collectively let's ensure innovation truly remains whole!
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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Brookings Event March 5 – North American Trade and USMCA
Brookings Institute | Feb 27, 2025
Image: Freepik/rawpixel.com
USMCA Forward 2025 Mapping the Future of North American Trade
North American trade is at a critical juncture, and businesses need to be ready. The USMCA (United States-Mexico-Canada Agreement) or CUSMA (Canadian-United-States-Mexico Agreement as it's known in Canada) is expected to be reviewed in July 2026, and new U.S. tariff threats are adding uncertainty.
See: Canada and Trump Risk Index What Fintechs Need to Know
This hybrid event "USMCA Forward 2025 launch" is on March 5, 2025 is being hosted by the Brookings Institute a leading think tank in Washington, D.C. known for its comprehensive research on economic and global policy issues. The event will bring together experts to discuss the future of trade between Canada, the U.S., and Mexico and help Canadian businesses, investors, and policymakers understand what’s coming next and how to prepare.
Event Details
📅 Date: Wednesday, March 5, 2025
🕜 Time: 1:30 PM – 4:00 PM EST
📍 Location: The Brookings Institution, Washington, D.C. (Attend in person or online)
🔗 RSVP to attend in person or watch the webcast
Why This Event Matters
Topics include:
- USMCA’s upcoming 2026 review – Evaluating its effectiveness and necessary updates
- New U.S. tariffs on Canada and Mexico – Understanding Trump’s 25% import tariffs, potential delays, and retaliation risks
- Key industries at risk – Energy, manufacturing, and emerging tech sectors like EV production and AI regulation
- Canada’s role in trade competitiveness – Dealing with uncertainty while protecting Canadian economic interests
- Latest Tariff Updates
- A Canadian perspective will be shared by John Stackhouse, Senior Vice-President, Royal Bank of Canada, who is participating in a fireside chat with moderator
President Trump has announced new tariffs on imports from Canada and Mexico, including a 25% tariff on most goods and a 10% tariff on Canadian energy exports, starting March 4, 2025. However, there are signs the tariffs could be pushed back (again) to April 2, 2025, depending on ongoing negotiations. This decision comes after months of uncertainty. Canada and Mexico have warned they will respond with their own tariffs, raising concerns about a possible trade war.
For further background on the risks of tariffs and their impact on Canadian businesses, check out:
- The Risks of New U.S. Tariffs for Canadian Businesses
- Tariff Trade War Hits Canada – What’s Happening
- What Fintechs Need to Know About New U.S. Tariffs
- Trump’s Tariffs: Impact on Fintech and Canada’s Digital Tax
How to Participate
Register to attend in person or watch the free webcast
Questions can be submitted to panelists via email to events@brookings.edu
This is an important event to watch for anyone involved in North American trade.
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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1,000 Artists Protest AI Copyright Plans with Silent Album
AI | Feb 25, 2025
Image: Is This What We Want? (1000 UK Artists, Cover)
UK Musicians Release Silent Album to Protest AI Copyright Plans
More than 1,000 British musicians including Kate Bush, Annie Lennox, Cat Stevens, and Damon Albarn, have released Is This What We Want?, a silent album designed to protest the UK government’s proposed changes to artificial intelligence (AI) copyright laws that would allow AI companies to train their models on copyrighted material unless creators explicitly opt out.
The album is made up of recordings of silent studios and empty performance spaces, acting as a warning of what could happen if AI companies are allowed to use artists' work without limits.
Ed Newton-Rex, Composer and AI developer who organized the project:
“Almost silence to symbolize what we expect will happen if the government’s proposals go through.”
“The government’s proposal would hand the life’s work of the country’s musicians to AI companies, for free, letting those companies exploit musicians’ work to outcompete them. It is a plan that would not only be disastrous for musicians, but that is totally unnecessary. The U.K. can be leaders in AI without throwing our world-leading creative industries under the bus.”
A Fight Over Creative Control
In December 2024, the UK government proposed changing copyright laws so that AI companies can use content found online to train their systems without asking permission from the original creators. Under the proposed "opt-out" rule artists would have to take action to stop their work from being used, instead of requiring approval first.
While the UK government claims that the changes are aimed at boosting AI innovation while balancing artists' rights, critics of the plan including the likes of Elton John, Paul McCartney, and Annie Lennox say that it's like 'legalized theft' of their work.
People against this plan say it’s unfair because it undermines the UK's creative industries which contributed £7.6 billion to the economy in 2023:
See: The Necessity of Copyrighting Your Voice in 2024
- Artists have no easy way to see or control how AI is using their work
- Stopping AI from using their content is complicated for anyone, especially for independent creators
- AI companies could make money from copyrighted material without paying any royalties, hurting musicians, writers, and other artists financially
AI content generation is of course a major legal and ethical issue globally. In the U.S. artists and media organizations have launched lawsuits against AI firms for using copyrighted material without permission.
What Happens Next?
The UK government insists that they are trying to strike the balance between AI development and protecting creative rights. A spokesperson from the Department for Science, Innovation and Technology said, "No decisions have been taken," and that "no moves will be made until we are absolutely confident we have a practical plan that delivers each of our objectives."
See: The Frontline of AI’s Copyright Law Battle in 2024
Proceeds from Is This What We Want? will go to Help Musicians, a charity supporting UK artists. But the questions remains, will policymakers listen before the silence becomes real?
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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Select Insights from Buffett’s 2024 Letter to Shareholders
Warren Buffet | Feb 25, 2025
Image: Berkshire Hathaway 2024 Annual Report (cover)
Warren Buffet's 2024 Letter to Shareholders is a Timeless Playbook for Strategic Growth and Resilience
Every year, the 'Oracle of Omaha', Warren Buffett, writes a letter to Berkshire Hathaway shareholders containing a treasure trove of insights. The 2024 edition (150 page PDF) was no exception, offering key advice to fintech leaders, investors and entrepreneurs on patience, investment strategy, and business leadership. With so much geopolitical unrest in the world combined with vast technical progress, Buffett's wisdom and approach should resonate with those seeking valuable life long lessons.
Reflecting on Charlie Munger’s Investment Wisdom
1. The Power of Patience and Strategic Cash Reserves
Berkshire Hathaway’s cash position soared to an incredible, record-breaking $334.2 billion. Although Buffet is sitting on deep piles of liquidity, instead of rushing to deploy capital, he makes it clear that waiting for the right opportunity is better than chasing overpriced assets.
"Often, nothing looks compelling; very infrequently, we find ourselves knee-deep in opportunities."
For fintech startups and investors this is a critical lesson. Growth at all costs is not (always the best) strategy. Sustainable success requires disciplined capital allocation as well as knowing when to sit on the sidelines. Companies that prioritize liquidity and financial resilience will be better positioned when real opportunities arise.
2. Insurance is a Growth Engine During Times of Uncertainty
In 2024, just over half or 53% of Berkshire’s 189 businesses reported lower earnings, but its insurance division thrived. GEICO, under Todd Combs’ leadership, improved underwriting, leading to a record profit of $7.8 billion.
See: Canada and Trump Risk Index What Fintechs Need to Know
Buffett emphasized that insurance growth depends on taking calculated risks and pricing appropriately. Higher interest rates also helped the insurance business make more money from investments.
"[Property-casualty] insurance growth is dependent on increased economic risk. No risk – no need for insurance."
For fintech, the key lesson is that accurately measuring risk is a big advantage. As the industry develops and adopts more AI driven underwriting and digital insurance tools, the companies that get risk assessment right will be the ones that succeed. The insurance sector is also sitting on piles of transactional data that can feed emerging AI models of the future. Companies that can tap into this exceptional data source, stand to gain big time.
3. One Great Decision Can Change Everything
Buffett pointed to key moments in Berkshire’s history like buying GEICO, to show how a single smart decision can lead to long-term success.
"A single winning decision can make a breathtaking difference over time."
So perhaps instead of chasing every trend, entrepreneurs and investors might benefit the greatest by focusing on one transformative, high-impact opportunity that can define a company’s future. In fintech, many sectors are filled with short lived hype cycles but those that focus on creating real value over time will thrive.
4. Betting on Global Markets and Diversification
At a time when the world is bifurcating and the U.S. seeks to protect their own interests, Buffet who has long favoured backing America companies, reinforced the importance of global diversification by increasing stakes in five major Japanese trading companies: Itochu, Marubeni, Mitsubishi, Mitsui, and Sumitomo.
See: Disruptive Innovations Driving Global Change in 2025
He wrote that the initial investment of $13.8 billion had grown to a market value of $23.5 billion by the end of 2024, and that these investments are projected to yield $812 million in dividends for 2025. He expressed confidence in the long-term prospects of these companies, indicating intent to hold these positions for many decades.
"Our holdings of the five are for the very long term, and we are committed to supporting their boards of directors."
Opportunity isn’t confined to a single region. While U.S. fintech firms often dominate the headlines, emerging markets and global players might offer untapped potential for those willing to expand to new horizons.
5. Leadership Transition That Every Business Should Plan For
At 94 years old, Buffett addressed his succession plan, confirming Greg Abel as his successor. He emphasized that leadership transitions must be carefully managed to ensure continuity and stability.
"At 94, it won’t be long before Greg Abel replaces me as CEO and will be writing the annual letters."
This is a great reminder that succession planning is critical. Whether scaling a startup or managing an investment portfolio, businesses that outlast their founders must have strong leadership continuity baked into their DNA.
Why This Matters
Buffett’s insights offers fintechs, alternative financiers and investors looking to build sustainable, long term businesses, key insights:
See: Digital Export Trends and Global Trade Fintech Opportunities
- Smart money management and patience are more important than chasing fast growth.
- Accurately assessing risk is key to success in financial services.
- A single well-planned decision can define a company’s future.
- Expanding beyond one market is crucial in today’s global economy.
- Preparing for leadership changes helps businesses stay strong over time.
Closing Outlook
Warren Buffett’s 2024 letter is a masterclass in patience, strategic decision making, and long term value creation, reminding investors and entrepreneurs that disciplined growth, risk management, and leadership continuity are the keys to lasting success. Download Buffett's 2024 Annual Report 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, 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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Milei Faces Political Crisis After $LIBRA Crypto Collapse
Crypto | Feb 18, 2025
Image: Freepik/natanaelginting
Political Turmoil as Argentina's Presidents Endorsement Leads to Investor Losses, Lawsuits, and Impeachment Calls
As widely reported, Argentina’s President Javier Milei is facing a political crisis after promoting a cryptocurrency called LIBRA, which rocketed in value before suddenly collapsing nearly 97% within hours, however insiders cashed out millions ahead of the collapse, resembling a classic 'rug pull' scam. The fallout has led to financial losses for thousands of investors, triggering lawsuits, political backlash, and calls for Milei’s impeachment.
Milei's administration claims he was unaware of the project’s details but opposition leaders argue that his promotion directly fuelled speculation and losses. With over 100 legal complaints filed at Argentina’s Supreme Court and lawmakers demanding Milei answer questions before Congress, the crisis is deepening.
How the LIBRA Scandal Unfolded
On February 14, 2025, Milei tweeted to his 3.8 million followers, promoting LIBRA as a private initiative to fund small businesses. His endorsement triggered a viral price surge that pushed the token’s market cap to $4.56 billion within minutes.
Behind the scenes however, eight wallets linked to the LIBRA team quietly withdrew $107 million in liquidity, and automated trading bots linked to insiders also bought the token at $0.38 and sold at peak prices generating millions in minutes. Everything signalled that this was an orchestrated exit. Panic spread and LIBRA plummeted from $4.97 to $0.19 within hours, wiping out 74% of investor funds.
See: Crypto scams, DeFi hacks, and rug pulls: Why the crypto industry needs insurtech
Milei deleted his post at 10:38 PM, claiming he had “obviously no connection” to the project and was not familiar with its details. However, critics noted that he had met with the project’s backers just weeks before the launch. By midnight Feb 15 the crash was complete.
Legal and Political Fallout
After the collapse more than 100 legal complaints were filed at Argentina’s Supreme Court accusing Milei of participating in a fraudulent scheme. Opposition lawmakers estimate 40,000 investors suffered financial losses with some losing up to $100,000. The scandal even rocked Argentina's stock arket with the Merval index dropping 5.6% on February 17. Calls for Milei's impeachment grew louder with former President Cristina Kirchner branding him a "crypto fraudster".
Who Else Was Involved in LIBRA?
Two companies were behind LIBRA which were largely unknown in the crypto sector before launching the project.
- Julian Peh, KIP Protocol positioned his firm as a blockchain initiative but had no previous ties to crypto investments
- Hayden Mark Davis, Kelsier Ventures later blamed Milei for withdrawing support saying his endorsement was promised to continue
What Happens Next?
Milei has ordered an internal investigation but critics argue that it's a political maneuver to deflect responsibility. Argentina’s Supreme Court is investigating whether Milei was involved in the scam or simply made a mistake. If found guilty, he could be impeached or face criminal charges, which could further weaken Argentina’s already unstable economy.
Aside Update: Decrypt reports that Binance founder Changpeng Zhao (CZ) has since donated 150 BNB (about $60,000 USD) to help people who lost money in the $LIBRA scam. While the donation offers some relief, it still only represents a small part of the total losses.
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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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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