Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Fintech International
FCA Review of Deferred Payment Credit Rules (BNPL)
BNPL | July 23, 2025
Image: Freepik
FCA Consultation on New Consumer Focused Rules to Regulate £13 billion BNPL sector by July 2026
On July 18, 2025, the Financial Conduct Authority (FCA) published their approach to regulating Deferred Payment Credit (DPC), otherwise known as 'Buy Now Pay Later' (BNPL), or interest free credit service if repaid in twelve or fewer instalments within 12 months.
From July 15, 2026, third party lenders that provide DPC to finance purchases must be authorised by the FCA. Merchants that offer their own DPC directly and broking activity remain outside scope.
See: UK Exempts In-home BNPL Sellers From Licensing
The FCA says its approach is proportionate and designed to reduce consumer harm without creating unnecessary burdens. It relies on the Consumer Duty to deliver good outcomes while adding specific rules where gaps exist. The aim is to build trust in DPC, support financial resilience, and promote sustainable economic growth.
Regulatory Concerns
DPC lending has expanded rapidly from £0.06 billion in 2017 to more than £13 billion in 2024. The FCA Financial Lives Survey reports that 20% of UK adults or about 10.9 million people used DPC in the twelve months to May 2024.
BNPL is growing fast and because it's been exempt from regulation, borrowers may not receive enough information before taking on debt and some lending may be unaffordable (akin to payday lenders?). The FCA notes that DPC users are more likely to be in financial difficulty than the average broader population.
Proposed Rules
- Information Disclosure - The FCA proposes that firms present key product information before an agreement is made and provide it again afterwards in a durable format that customers can store and read. Required elements include repayment amounts and dates the amount of credit late fee triggers consumer rights such as withdrawal or cancellation and whether a credit search will take place
- Creditworthiness and treatment of borrowers - Existing FCA Consumer Credit Sourcebook rules on creditworthiness (CONC 5.2A) would apply to DPC so lenders must assess whether customers can repay without harming their wider finances. The FCA links this to concerns about arrears late fees and borrower vulnerability and intends that firms provide support where customers are in or approaching financial difficulty in line with CONC 7
See: BNPL Plans Are Starting to Affect Credit in Canada
- Missed Payments and Defaults - Standardised requirements for borrower communications and fair treatment under CONC 7
- Consumer Duty - Firms must act in good faith, avoid expected harm, and support consumers to meet financial objectives throughout the journey
- Dispute Resolution - All DPC borrowers will have access to the Financial Ombudsman Service
- Data Reporting - Introduction of Product Sales Data (PSD) submissions to enable FCA supervision
Implementation Timeline
- Consultation deadline is September 26, 2025
- Policy Statement with final rules can be expected early 2026
- Regulation starts July 15, 2026
- Companies can continue operating while seeking full authorisation under a temporary permissions regime
Complete the online response form for CP25/23 or email: cp25-23@fca.org.uk
Why It Matters
The FCA's proposed rules look to reduce avoidable harm from missed payments and unclear terms while maintaining access to short term interest free credit, for those who can afford it. With 20% of the adult UK population using DPC/BNPL in the last 12 months, it's near time that the FCA's rules are in market for consultation. It is designed to boost trust and bring sustainable economic growth to the 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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Lovable Hits $100M in 8 Months With Code Vibing Model
AI | July 23, 2025
Image: Freepik AI
Lovable Reaches $100 million ARR in 8 Months by Turning Plain Language Into Real Software
Lovable is now the fastest growing software company in history. In just eight months, it reached $100 million USD in annual recurring revenue and 2.3 million users and has hosted more than ten million projects. Based in Stockholm, the company raised $200 million USD series A led by Accel giving it a $1.8 billion USD valuation.
It's a very lean modern AI startup with fewer than 50 employees. The product is simple to use. A person types what they want, such as a subscription service, marketplace, or dashboard, and Lovable generates a working version of that software, complete with payment options, user accounts, and hosting. There is no need to write code or hire a developer to get started (Disclaimer: NCFA hasn't tested it out so try at your own risk).
What is Vibe Coding
Lovable pioneered what is now called vibe coding, a method of building software through natural language. It is not low code or no code. It is writing what you want and letting AI decide how to make it happen.
Lovable uses large language models to reason through structure, fix bugs, and update design. It handles back end and front end together, removing the usual friction between product and engineering. The experience feels like brainstorming and designing at the same time. Instead of wireframes, the output users receive is a live, working application.
See: The Rise and Implications of a New AI Software Workforce
Instead of submitting tickets and changes requests to engineers who prioritize, vibe coding users get instant revisions by AI, bringing the act of creation closer to the way people think and work.
From Weekend Projects to Real Revenue
Users have already launched working businesses. In Brazil, education company QConcursos used Lovable to create a premium app in two weeks. According to the Forbes article linked above, it earned over $3 million USD in its first 48 hours.
In Sweden, a film financing startup was built in ten days.
In the United States, solo creators have launched career services, restaurant tools, and job boards.
See: Goldman Sachs Deploys Agentic AI Engineer Devin
These apps are not static sites. They include working payment systems, data collection, and user flows. While NCFA hasn't verified the platform for production use in regulated financial services, it is already serving thousands of live projects across many sectors.
Implications for Fintech Founders in Canada
While fintechs cannot skip compliance and human review, platforms like Lovable can support real benefits if used in the right way. Founders can use it to build secure internal tools, demo customer interfaces, or iterate product development and user flows for future rollouts.
Instead of waiting months for a development sprint, they can validate ideas within a day. For new entrepreneurs, this model reduces early cost and lowers the barrier to entry. For accelerators, it means faster iterations and better pitch readiness. For investors, it reveals traction earlier, even before a technical team is hired.
It is an opportunity to apply the same tools and patterns where they fit. Sandboxed environments, staged deployment, and expert review can all be paired with AI created builds. With the right controls, teams can go from idea to working demo while staying aligned with Canadian regulatory frameworks.
See: Fiverr Launches AI-Powered Fiverr Go, Mixed Reactions
NCFA members can explore these tools in workshops, demo days, or internal projects.
"This is not about rushing code into production. It is about speeding up learning and expanding who gets to build, and as a result what's built."
Outlook
Software creation is changing and it's no longer reserved just for high paid developers. Now, innovation will start to emerge from people who actually know the problem, not just how to explain it. Canada has the talent and creativity, and now the tools are here to unleash the genie out of the bottle.
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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Schwab to Bring Crypto Trading to Its Brokerage Platform
Crypto | July 22, 2025
Image: Youtube Short - Charles Schwab CEO Rick Wurster interview CNBC Television
Charles Schwab Confirms It Will Let Users Trade Bitcoin and Ethereum Directly
On July 18, 2025, Charles Schwab CEO Rick Wurster confirmed in an interview with CNBC Television that Schwab will soon let users buy and sell Bitcoin and Ethereum directly in its brokerage accounts, with the trading option to launch within the next 12 months. The change means Schwab clients will be able to hold crypto alongside their stocks, ETFs, and bonds without having to rely on a separate platform.
See: Coinbase Buys Deribit for $2.9B to Lead Crypto Derivatives
Schwab already offers clients access to crypto ETFs, and it currently manages more than 20% of the U.S. crypto ETP market. But Wurster says clients have been asking for more, expressing interest to hold actual Bitcoin or Ether at Schwab. This means that Schwab will soon be directly competing with Coinbase and other crypto exchanges.
In an interview with CoinDesk, Wurster said clients say:
"I’ve got 98% of my assets sitting at Schwab. I can’t wait until you have bitcoin or [Ether] because I want them sitting alongside my other assets.”
Clients Want Simpler Access
According to Cointelegraph,crypto interest on Schwab's platform jumped more than 400%, and the new offering is a direct response to what clients are asking for.
See: Grayscale ETF Wins SEC Approval for 5 Crypto Assets
The company also plans to launch a Schwab-branded stablecoin at some point in the future, although it hasn’t said how or when that might happen.
This retail launch is separate from Schwab’s earlier involvement in building EDX Markets, a crypto exchange created for institutions and broker-dealers. That platform is still active, but this new offering will be aimed at regular investors using Schwab’s main trading platform.
Why This Matters for Canada
Schwab’s plan to bring crypto inside the brokerage account highlights a growing difference between the U.S. and Canada. U.S. companies like Schwab, Fidelity, and BlackRock are building full-service crypto options under existing financial rules. But in Canada, crypto trading is still kept separate from brokerage services.
Wealthsimple and a few other Canadian platforms do offer crypto trading, but none of the big Canadian banks or traditional discount brokerages offer integrated crypto and stock/ETF accounts yet. That means Canadian investors still have to open multiple accounts, transfer funds between platforms, and manage different levels of regulation and risk.
See: Quantum Safe Stablecoins Meet Real Time Finance Needs
Canada was early to approve crypto ETFs, but it has not moved forward on allowing spot crypto trading in mainstream financial accounts. Schwab’s move shows how U.S. rules are creating new opportunities that Canadian investors and fintechs are missing. Unless Canada modernizes its approach, it risks falling further behind in investor access, innovation, and market competitiveness.
Outlook
Schwab manages over $8 trillion in assets and serves more than 35 million investors. Once the retail services is switched on, Charles Schwab will instantly become one of the largest retail crypto access points in America.
It adds pressure on Canadian regulators and financial firms to review their approach. Canadian fintechs could lose users and assets to U.S. competitors that offer a more complete experience. For investors who want all their assets in one place, Schwab’s upcoming crypto service will make that possible. That could raise expectations on this side of the border too.
See: OSFI Drafting New Framework to Regulate Stablecoin Issuers
For Canada to be competitive, they will need to push for better policy alignment and faster integration of crypto into traditional finance, and ideally offer services that add value beyond what the big U.S. platforms offer.
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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Why AI Investment Is Missing What Workers Actually Want
AI Research | July 22, 2025
Image: Freepik AI
New Stanford Report Data Shows Gap Between AI Funding and What Workers Support
According to a recent WORKBank audit, a major new study from Stanford's SALT Lab, 41% of Y Combinator-backed AI agent companies are
to tasks that workers have no desire for automation. These 'no go zones' represent tasks that are technically automatable but socially or emotionally rejected by workers. It's a growing disconnect that highlights a fundamental challenge for the future of work.
Should AI companies and investors automate tasks that people do not want or lead to no progress, no matter how advanced these systems are?
Workers Perspective of AI's impact
The WORKBank database is based on a comprehensive survey of data collected between January and May 2025 from 1,500 U.S. workers across 104 occupations and 844 occupational tasks. Each task is drawn from the U.S. Department of Labor’s O*NET database and evaluated by worker preferences and AI expert assessments. Responses were collected using an audio interface to reflect practical real world task experience.
See: Double-Edge Sword of AI’s Impact on Workforce Experience
This structured format asked workers whether they would want a task fully automated by an AI agent, and how much human collaboration they believe is needed to maintain task quality.
Human Agency Scale Can Help Measure Collaboration
To assess the balance between automation and augmentation, the research team created the Human Agency Scale, a 5 level scale from H1 (no human involvement) to H5 (essential human involvement).
The most preferred response across the workforce was H3, an equal partnership between humans and AI agents. This level was dominant in 47 out of 104 occupations, however for 47.5% of tasks, workers wanted more human involvement than experts believed was technically necessary. It's a gap that could evolve into resistance points in high efficiency AI rollouts.
Workers Support Automation When It Supports Their Time and Wellbeing
Despite concerns, 46.1% of tasks received a positive rating for automation. Workers were most supportive of AI when it freed up time for more important work (69.4%), reduced repetitive or tedious tasks (46.6%), or improved quality (46.6%).
See: OpenAI Launches Operator, AI with Task Execution
On the other hand, resistance appeared from fear of losing trust, jobs, or creativity. Among those expressing concerns, 45% cited lack of trust, 23% named job loss, and 16.3% described the loss of a human touch. Arts, Design, and Media was the sector with the lowest interest in automation where only 17.1% of tasks received a positive score.
Are AI Investments Automating the Right Tasks?
Researchers compared the WORKBank tasks with descriptions of companies backed by Y Combinator’s public portfolio. The results show a concentration of capital in areas workers are skeptical about.
41% of companies were mapped to tasks in the Low Priority Zone or Automation Red Light Zone, where worker demand is weak or negative, while many tasks in the Automation Green Light Zone and R&D Opportunity Zone where workers want automation remains underfunded (Read: ripe for AI task automation).
Workforce Skills Are Evolving Toward Interpersonal Strengths
The research also looked at how AI is impacting the demand for certain job skills. Tasks that require higher levels of human agency usually involve interpersonal and decision making abilities rather than data analysis or technical information processing.
See: Balancing AI Automation and Ethics in Fintech
Comparing skill rankings based on wage data from the U.S. Bureau of Labor Statistics with human agency requirements revealed a trend away from solo technical execution toward organizational coordination, collaboration, and judgment. This suggests a shift in the kinds of competencies that AI will complement rather than replace.
Why This Matters for Canada and Fintech
Canada is investing heavily in AI innovation, fintech development, and reskilling strategies for the future economy. The WORKBank research shows that AI innovation must be aligned with worker needs and social context. If Canadian fintechs and investors focus only on technical feasibility without considering how workers feel about automation, they risk building tools that sit unused, untrusted, or even opposed. AI companies and investors must engage the people whose work is being transformed.
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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Kimi K2 Disrupts AI Pricing and Performance Metrics
AI Competition | July 21, 2025
Image: Freepik/Rochak Shukla
Moonshot AI’s Kimi K2 Offers Strong Open Source Performance at a Fraction of the Cost of Top U.S. Models
On July 11, 2025, TechTarget reported that Alibaba-backed Chinese AI startup Moonshot released Kimi K2, a fully open source language model to compete toe to toe with top U.S. AI models, such as ChatGPT-4.1 and Claude Opus 4. Kimi K2 is open source, cheaper, widely accessible, and optimized for coding performance, putting pressure on Western artificial intelligence labs that are delaying their own open models.
How Kimi K2 Compares
Built using a Mixture-of-Experts (MoE) architecture with 384 experts, Kimi K2 can process long technical documents and perform code automation. Moonshot trained the model using AI agent-style simulations and synthetic task scenarios. The model is open access with few restrictions and performs well on global developer benchmarks like SWE-Bench, GPQA, and AIME.
See: Claude Launches AI Toolkit for Financial Workflows
Unlike closed models like Claude and GPT-4.1, Kimi K2 can be used freely through its app or run locally by downloading the model files. Commercial use is allowed, with attribution required only for very large services.
Pricing Benchmark Comparison
| Model | Input Cost / 1M Tokens | Output Cost / 1M Tokens | Open Source | Coding Performance |
| Kimi K2 | $0.15 | $2.50 | ✅ Yes | Outperforms Claude Opus 4 on SWE-Bench, GPQA, AIME |
| GPT-4.1 | $2.00 | $8.00 | ❌ No | High general performance, strong reasoning |
| Claude Opus 4 | $15.00 | $75.00 | ❌ No | Strong general model, weaker in code |
| DeepSeek V3 | Free (GitHub) | Free | ✅ Yes | Former top open model; Kimi K2 exceeds on GPQA |
Implications for Fintech and Developers
For Canadian fintech teams and AI builders, Kimi K2 is a cost-efficient way to automate development and build internal coding agents. It supports customized and secure deployments in regulated environments because files can be downloaded and can operate locally. There are team building tools like legal summarizers, compliance anlayzers, or custom service assistants that could be used to save costs at scale.
See: Botpress Raises $25M USD to AI Agent Infrastructure
The pricing and accessibility of Kimi K2 shows that global leadership in open AI no longer belongs only to Silicon Valley. With more Chinese labs like Moonshot and DeepSeek producing high performance and competitively priced models, the AI infrastructure landscape is still jockeying for position with more powerful deployments inevitable.
This improvement in AI capabilities comes as Canada recently committed $240 million to fund local compute infrastructure via a new AI data centre with Cohere.
Why It Matters
At just 15 cents per million input tokens, its cheaper than GPT-4.1 by more than 90% and Claude Opus by more than 99%. Combined with strong coding performance and open access, the Kimi K2 release is one of the most powerful free-to-use models available on the market today.
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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US House Pushes Crypto Reform Forward with Key Bills
Digital Asset Regulation | July 18, 2025
Image: Freepik/cookiestudio
Three US Crypto Bills Pass House Vote, One Heads to Trump's Desk
The US House of Representatives moved mountains yesterday and approve 3 major crypto bills during what lawmakers called 'Crypto Week', reflecting growing political support for crypto regulation. Some observers warn though that it could create another shadow banking system without sufficient oversight.
On Thursday, July 17, AP News reported the House passed the CLARITY Act in a 294–134 vote. The bill, which outlines crypto market structure reforms, will now move to the Senate for further debate. The GENIUS Act, focused on stablecoin rules, passed 308–122 and has already cleared the Senate. It now awaits President Donald Trump’s signature, with the White House expected to approve it. A third bill, the Anti-CBDC Surveillance State Act, passed by a narrower 219–210 margin and also heads to the Senate.
ICBA Reaction
The Independent Community Bankers of America (ICBA) released a statement opposing key provisions in both the GENIUS and CLARITY bills. ICBA President Rebeca Romero Rainey wrote:
"[The bills risk] establishing a parallel banking system that lacks the regulatory framework necessary to protect consumers and preserve financial stability, [if crypto firms are allowed to bypass traditional oversight]. [The proposed reforms could] allow crypto companies to offer products that resemble deposits or banking services without adhering to the same prudential standards."
The ICBA urged Congress to prohibit nonbanks from accessing Federal Reserve master accounts and to bar stablecoin issuers from offering yield-like products via affiliates or subsidiaries.
See: U.S. Crypto Week Will Impact Global Crypto Policy
Crypto markets responded with optimism with prices pushing all time highs, but not all stakeholders are convinced. Sen. Elizabeth Warren warned that the CLARITY Act could allow firms like Tesla or Meta to tokenize assets and sidestep SEC oversight.
Why It Matters
If President Trump signs the GENIUS Act, it will become the first U.S. federal law specifically regulating stablecoins, setting up a nationwide reserve, audit, and disclosure standards for issuers. The Senate’s upcoming hearings on the CLARITY and Anti‑CBDC bills will determine whether U.S. crypto markets receive cohesive federal oversight or remain subject to a fragmented mix of state rules and judicial rulings. With pressure mounting from banking groups, consumer advocates, and industry, the final outcome will determine if Washington will become a true global magnet for blockchain innovation, or a shadow financial system without full protections.
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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