Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Regtech, Compliance, Governance
OSFI Approves Santander for Canadian Banking License
Banking License | April 7, 2025
Image: Freepik/rawpixel.com
Banco Santander Is Now a Canadian Bank
After almost a six year wait, Banco Santander has secured a Schedule II banking license in Canada, an achievement that could ramp up digital competition in banking. Santander first applied for a Canadian banking license back in July 2019. After a long multi-year regulatory process, Santander received letters patent from Canada’s Minister of Finance in June 2024, a required step to establish a new bank under federal law. Last weekend in the official government gazette newsletter, stated that the Office of the Superintendent of Financial Institutions (OSFI) issued an order for Santander to 'commence and carry on business early last month - meaning its clear to operate.
Santander is the largest bank in Spain (and one of the largest in Europe), and the new license will allow it to offer full retail banking services, such as deposit taking, lending, credit cards, and wealth management products and services. This approval places Santander alongside other foreign banks operating as Schedule II subsidiaries in Canada , such as Citibank Canada, ICICI Bank Canada, Amex Bank of Canada, and others. It also raises fresh questions about the future of competition, digital transformation, and fintech collaboration in Canada’s tightly held banking industry.
From Auto Loans to Full Retail Banking in Canada
Although the Canadian banking license is new, Santander has been operating in Canada for more than a decade by acquiring Carfinco Financial Group, a company focused on automobile financing. So Santander already has a foothold in the Canadian market but now with a retail banking license, they can now expand offerings.
See: Founder Salaries: Insights from Europe, U.S., and Canada
Santander bank is already a major player in Europe and Latin America, and it operates in the U.S. and Mexico through a mix of consumer lending, auto finance, and digital-first retail banking. From Banco Santander's 2024 Annual Report, here's what sets them apart:
- €12.57 billion in net profit in 2024
- Over 168 million customers worldwide
- A return on tangible equity of 16.3% (one of the strongest in global banking)
- Ranked 16th globally by total assets
Its Canadian strategy definitely won't be going toe to toe against incumbent banks like RBC, Scotia or BMO by opening up hundreds of physical branches. Santander is more likely to curate niche offerings in personal finance and use its robust digital infrastructure to scale quickly and efficiently.
A Market Where Entry Is Rare, Not Impossible
According to The Logic, Santander’s license is one of just 11 new federal banking licenses granted in Canada over the past 10 years. So, yes this license is pretty big news to competition aficionados.
Recently on March 4 2025, President Trump complained on his Truth Social platform that "Canada doesn’t allow American banks to do business in Canada, but their banks flood the American market. Oh, that seems fair to me, doesn’t it?” However this is not really accurate given that there are at least a dozen of U.S. Financial Institutions currently operating in Canada including 3 who also have a schedule II license the same as Santander.
So, U.S. banks can operate here in Canada but they face regulatory and market challenges, since foreign banks must either collaborate with a Canadian partner, setup a Canadian subsidiary, or get government approval to do business here. There are also foreign ownership restrictions preventing them from acquiring Canadian banks and their licenses outright. Canadian consumers may also prefer working with one of the big six Canadian banks or the inherent trust of walking into a physical branch.
See: Canada Post Launches Postal Banking With KOHO
The door to a banking license isn't locked for qualified foreign banks but they'll need to meet rigorous standards of risk management and governance. Santander's success in receiving a Canadian banking license may open the pathway for more foreign digital-first banks interested in entering Canadian markets.
Santander's Digital Platform and Partnership Potential
Santander is bringing more than just capital and niche retail services to Canada. They have a fully developed digital platform and a strong history of working with financial technologies. They even have their own fintech division that operates PagoNxt, their global payment service offering with tools for merchants and embedded finance features that can be integrated into both banking and non-bank platforms.
Santander also owns Openbank, which has grown into Europe’s largest digital only bank by deposits.
See: Will Competition Reforms Boost Fintech? Inside the Fight
As of May 2022, Santander had moved over 80% of their global it infrastructure to the cloud, which means they are a cloud-native system that can launch products quickly, iterate, and experiment with tools that traditional banks would likely take years to develop (without similar infrastructure).
For fintechs working on API based banking, automated lending and other similar innovative and novel products and services, Santander could be more than a competitor but a potential partner who can bring capital, research, and tech enablement all in one place, and ready to go.
Open Banking Would Boost Santander and Fintech Growth
Is Santander's license approval tied in some way to Canada's imminent open banking rollout (expected in 2026) or the need to diversify and strengthen Canada's economy?
While the timing is certainly interesting, and there may be some nuanced reasons into the approval of Santander's license, we'll refrain from any speculation and just reiterate that when consumer-driven finance finally arrives in Canada, it will help newer brands like Santander to connect with more customers, offer new products/services, and deepen financial relationships, all powered by artificial intelligence and cloud-native systems.
See: Robinhood’s WealthTech Push and Lifestyle Finance
As Investment Executive noted, Canada's largest banks have long benefited from their exclusive access to consumer data. Open banking could begin to shift that balance. And let's be clear, that shift will take time but open banking may certainly allow for more experimentation, more competition, and more chances for fintech firms and digital banks like Santander to connect with customers in new ways.
Take Aways
For NCFA's community, Santander’s arrival is a sign that the ecosystem is evolving. Canada’s financial future is bound to become more digital, more connected, and hopefully more competitive than ever. For fintech firms building in lending, onboarding, or data innovation, now is the time to explore how players like Santander could support growth through partnership.
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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OSC Green Lights Kraken’s Restricted Dealer Status
Crypto | April 4, 2025
Image courtesy of Kraken's blog post
OSC Approves Restricted Dealer License for Kraken to Operate Nationally in Canada
On April 2 2025, Kraken (Payward Canada Inc.) announced that it officially received approval as a Restricted Dealer, under the new registration framework for crypto platforms. The Ontario Securities Commission (OSC) issued Payward Canada Inc's approval order (63 page PDF) and has updated their live registry of 'Registered Crypto Asset Trading Platforms', which applies nationally under the passport system that allows provinces and territories to recognize each other's decisions, so Kraken is open for business from coast to coast, from B.C. to Newfoundland to Nunavut.
Kraken also announced that based in Toronto, Cynthia Del Pozo, is its new General Manager for North America and will focus on strengthening the firms regulatory, political and commercial partnerships and scale Kraken's growth and brand across North America. To celebrate the registration milestone, Kraken is offering free Interact e-Transfer deposits for Canadians, making it easier and cheaper for users to onboard funds onto the platform.
See: Kraken Acquires Retail Futures NinjaTrader $1.5B
In Kraken's blog post, it acknowledges that Canada has played a pioneering role in crypto adoption by being the first country to install a public Bitcoin ATM (downtown Vancouver) and also the first to launch a regulated spot Bitcoin and Ethereum ETFs in 2021.
Kraken Canada's Achievements
Over the past two years, Kraken has been scaling up its activity and presence in Canada:
- Doubling its Canadian workforce and number of active users
- Surpassing $2 billion CAD in client assets under custody(announced November 2024)
- Launching Canadian dollar trading pairs to help clients avoid foreign exchange fees
- Laying groundwork to serve institutional investors seeking regulated crypto access
Limitations with Kraken's Restricted Dealer License
While obtaining a Restricted Dealer registration status is a clear win, there are some key limitations and safeguards that Kraken Canada must follow, providing a clearer picture of how the OSC and other provincial regulators are tightening crypto rules.
1. Kraken Canada's users' assets aren't insured by the Canadian Investor Protection Fund (CIPF). That means if something goes wrong with the platform, there’s no insurance on your assets. Every user has to agree to this before they can trade.
2. Kraken’s Flexible Staking program that allows users to earn rewards while keeping control of their crypto must shut down within 120 days of April 1 unless regulators grant approval or an extension. New users are already blocked from joining it.
3. Kraken isn’t allowed to help create or promote new cryptocurrencies unless it gets the green light from regulators. This rule helps prevent conflicts of interest between Kraken and the projects/tkens listed on its platform.
See: SEC Drops Yuga Labs Investigation and Kraken Case
4. If a token is labelled a security or derivative by a regulator (in Canada or elsewhere), or if the people behind it have a track record of fraud, money laundering, or other serious violations, Kraken has to stop offering it right away.
5. Canadians can only access Kraken through its local Canadian platform (overseen by Canadian regulators), and not Kraken's global site.
6. Kraken isn’t allowed to include its own crypto holdings (unless those assets are connected to client accounts) when reporting its financial position. This keeps the company from padding its numbers with risky or volatile assets.
7. Kraken isn’t allowed to trade crypto for its own profit (can't be a market maker). It can only trade/fill client orders or manage risk. That means no speculative bets or operating a money making trading desk behind the scenes.
How Kraken’s Current Status Compares to the Next Regulatory Tier
Kraken also plans to apply for full investment dealer registration and join the Canadian Investment Regulatory Organization (CIRO), which would allow it to offer more services including an Alternative Trading System (ATS) for crypto trades.
See: Kraken’s Strategy for Canadian Market Growth
| Feature | Restricted Dealer (Kraken now) | Investment Dealer + ATS (Kraken future) |
| Regulatory Status | Temporary or limited-purpose license | Full dealer registration under securities law |
| Regulator | OSC + CSA with PRUs | CIRO (formerly IIROC) + OSC/CSA |
| Membership | Not a member of CIRO | Full CIRO member |
| Investor Protection | No CIPF coverage | Yes — CIPF protection for client funds |
| Eligible Clients | Retail and institutional | Retail, institutional, advisory, discretionary |
| Crypto Products | Crypto Contracts only (not securities) | Potentially securities, derivatives, asset-backed tokens |
| Trading Venue | Not a formal exchange or ATS | Can operate an ATS |
| Staking Products | Allowed with restrictions | Subject to broader oversight, possibly wider offering with CIRO approval |
| Market Making | Not permitted | May be permitted under ATS/marketplace rules |
| Capital Requirements | Lower — tailored to risk | Much higher; must meet CIRO's ongoing capital tests |
| Surveillance & Audit | Periodic OSC reporting | CIRO-mandated audits, books & records, daily capital reports |
| Risk Assessment | Suitability per trade (retail) | Full KYC, suitability, supervisory systems, conflict management |
Outlook
Kraken’s approval shows that crypto in Canada is moving into a more regulated phase with greater protection, clearer rules, and more accountability/responsibility. Kraken’s next step is to become a full investment dealer, which could lead to new services and even stronger safeguards for users.
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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UK FCA Plans Full Crypto Licensing Regime by 2026
UK Crypto Regulation | April 2, 2025
Image: FCA Crypto Roadmap (Financial Conduct Authority)
FCA Confirms UK Crypto Registration to Begin in 2026 Following Legislation this Year
In a recent interview with CoinDesk, FCA Director Matthew Long said that the UK intends to officially start licensing crypto firms under a comprehensive framework in 2026. It's contingent on consultations and final rule-making this year in 2025, and then being approved by Parliament.
Current Registration Landscape
As of April 2 2025, the FCA has registered 51 cryptoasset firms under a temporary anti-money laundering (AML) framework to ensure basic compliance until a more comprehensive framework is developed. Bookmark the above link if interested in tracking and verifying the registration status of crypto firms in the UK. The resource page is managed and kept up-to-date by the FCA. Crypto businesses were given ample time to register for the temporary regime including an extension.
Transitioning to New Comprehensive Framework
The new UK crypto licensing rules will go beyond just anti-money laundering checks. They’re expected to cover areas like how crypto is stored (custody), how tokens are listed on platforms, how market abuse is prevented, and how consumers are protected. This plan builds on two key FCA documents published in late 2024.
First in November 2024, the FCA published a Crypto Policy Roadmap outlining the FCA’s policy direction and timeline for implementing its comprehensive crypto framework. Then, there's a Discussion Paper DP24/4 (December 2024) that evaluated options for regulating cryptoassets with a focus on market abuse rules and establishing disclosure standards. Together, along with numerous updates to industry, its clear that the FCA is aiming to create transparent and fair crypto regs that support innovation while keeping the market safe and trustworthy.
The National Crowdfunding & Fintech Association (NCFA) has tracked and reported the FCA's progress towards crypto regulation by 2026 including initiatives like stablecoin rules and the Digital Securities Sandbox. Learn more: "UK’s Regulatory Crypto Roadmap from Sandbox to Mainstream
Implications
By providing clear regulatory guidelines, the FCA aims to enhance consumer confidence and attract legitimate crypto businesses.
See: UK vs. Canada: A Tale of Two Different Crypto Consumers
It aligns the UK with global efforts to standardize crypto regulation, and continues to position the UK competitively among jurisdictions like the European Union and the United States.
Conclusion
Given that the UK is entering a new phase of crypto regulation, with full licensing expected to begin in 2026, crypto firms looking to operate in the UK should stay engaged with the FCA to prepare for the new rules, and implement the required compliance and governance procedures.
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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eToro Files Nasdaq IPO After Crypto Revenue Surge
Public Market Funding | March 31, 2025
Image: Freepik/macrovector
Trading platform eToro officially files to go public on Nasdaq as IPO interest builds
On March 24, 2025, an Israeli fintech platform known for social trading and crypto investments, eToro filed paperwork with the U.S. Securities and Exchange Commission, confirming intent to go public on the Nasdaq under the ticker symbol “ETOR". After several years of IPO uncertainty and decline, here's a
of 10 private fintech companies watching and waiting to see how IPOs in early 2025 perform before announcing their own.
About eToro
eToro is an Israeli fintech company with offices in Cyprus, UK, US, Australia, Germany and the UAE, and not currently available to Canadian residents. It's an online, multi-asset trading platform founded in 2007 where users can trade stocks, exchange-traded funds (ETFs), cryptocurrencies, and commodities. Uniquely it offers social trading features where users can view, follow, and copy the investment strategies of other traders. This innovation makes investing more accessible for those new to trading and financial markets.
See: 10 Fintech and Crypto IPOs 2025 – Boom or Bubble?
eToro is a digital-first platform that operates entirely online via web and mobile apps, reducing many of the barriers traditionally associated with investing. It was one of the first early fintech players to embrace crypto trading which helped democratize digital assets among retail investors. With a friendly UX/UI, real time data tools, and low starting requirements, eToro is often compared to fintech giants like Robinhood, Revolut, and Wealthsimple and is part of the broader movement to challenge incumbents by using new technologies to offer simpler, faster, and often cheaper alternatives.
eToro’s financial performance has been strong heading into 2025. In 2024, the company generated $931 million in commissions, an 31% increase over the year prior. Net income also jumped to $192 million from just $15 million the year before. Why the growth? A surge in crypto trading made up 38% of their commissions last year which is up more than double from 17% in 2023 per investopedia reporting.
IPO Market 2020-2025
Initial Public Offering markets have been hit or miss over the past five years, due to economic uncertainties, investor sentiment and global events. Below is an overview.
2020-2021 - IPO activity surged. Low interest rates and a bullish stock market created favourable conditions that leads to a record number of companies going public. In 2021, global IPO proceeds raked in $508.9 billion, an 80% increase compared to 2020.
2022-2023 -IPO decline/uncertainty. Due to rising inflation, rising interest rates, and geopolitical tensions, IPO momentum slowed in 2022 and 2023. Investors were caution leading to a big drop in IPO activity. In 2023, global IPO proceeds fell like a stone to around $117.9 billion, the lowest in the last decade.
2024 - IPO markets showed signs of recovery. While the U.S. led in IPO proceeds, India surpassed other countries in IPO volume, highlighting regional strengths. Private equity and venture capital-backed IPOs played a key role with tech, industrials, and consumer sectors leading activity.
2025 - pentup IPO demand / optimism Returns? With easing inflation and anticipation for further rate cuts, some confidence is returning to IPO outlook, proceeds in 2024 were up 45% and the number of IPOs also rose 40% from the previous year. Sectors like artificial intelligence, fintech and crypto are gaining traction due to a shift in the regulatory outlook, especially in the U.S. under the new administration. At the same time, tariffs and trade wars are dominating the narrative putting pressure on investor's outlook and economic uncertainty.
So after a period of volatility, IPO markets in 2025 appear to be ready for renewed activity but not without risks. As such, companies waiting in the IPO queue are watching with abated breath to see how proceeds and investor sentiment are before launching their own IPOs, including firms like BitGo, Gemini, Kraken, Circle, Klarna and Chime.
eToro's IPO Outlook
This isn't eToro's first kick at the IPO can. Back in 2021, eToro planned to list through a SPAC deal, a type of company that exists just to be taken over so firms can go public quickly. That deal would have valued eToro at over $10 billion but it fell through in 2022 according to investopedia.
See: How Fintechs Are Unlocking Value in Private Markets 2024
This time, eToro has big brand banks backing its IPO like Goldman Sachs, Jefferies, UBS, and Citigroup. If eToro’s IPO is successful, it could open the door for more tech and fintech firms that have been patiently watching on the sidelines and may finally be able to enter the public markets.
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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National Plan to Unlock Growth and Innovation
Royal Commission | March 28, 2025
Image: Freepik
Canada Needs a Bold National Plan to Support Innovation, Economic Growth, and Attract Investment
A group of Canadian policy experts from across the country at Policy Options are calling for a royal commission to secure Canada's future — and they're probably right if the first outputs and key decisions can be delivered on a very quick timeline (i.e. less than 6 months). They warn that Canada’s economic model is outdated, our policies are stuck in the 20th century, and our global competitiveness is slipping (let's not forget our continued productivity decline and inability to track significant investment).
See: The Crisis Canada and Fintech Can’t Afford to Waste
Canada's economy is underperforming. The country is slow to adopt modern financial infrastructure. Interprovincial trade barriers are costing billions. Canada lacks a coordinated innovation and startup scale-up strategy.
They argue that only a national, non-partisan effort like a royal commission can bring Canadians together to build a future-ready plan. For fintech, innovation, and entrepreneurship. If Canada is serious about attracting investment, scaling startups, and competing globally, it needs a national strategy that streamlines regulation, opens interprovincial trade, unlocks innovation and capital, boosts economic growth and attracts investment, and a royal commission could make that happen. Now is the time to act.
Royal commissions have worked before. The Macdonald Commission (1982–85) laid the groundwork for free trade and modern economic policy. A new commission could once again unite governments, entrepreneurs, and civil society to chart Canada's strategy in an uncertain future, but only if it moves quickly.
Why It Matters
Canada has amazing human capital - talent, ideas, and potential, but we need a national strategy that makes it easier for entrepreneurs to launch, raise capital, scale technologies, and compete globally, which would drive significant economic growth.
See: Canada’s AI Competition Report Faces Big Tech Challenges
A royal commission could align innovation, regulation, trade, and investment around a shared economic vision. Done right, it would empower the next generation of Canadian companies and secure long term prosperity, not by protecting incumbents but by empowering performance.
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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Are Your Tokens Securities? New EU Rules Say Maybe
EU Crypto Guidelines | March 28, 2025
Image: Guidelines - Crypto assets as financial instruments (ESMA)
New EU Guidelines Help Clarify the Line Between Crypto and Securities
Last month, the European Securities and Markets Authority (ESMA) published detailed guidelines (21 page PDF) as part of Markets in Crypto Asset Regulation (MiCAR) that help regulators and crypto companies figure out whether or not a specific crypto asset should be treated like a financial instrument and be regulated under Europe’s traditional investment rules, affecting how it's issued, traded, and supervised. This article provides an overview of the guidelines for your review.
Tokens That Act Like Shares or Bonds Will Be Regulated Like Them
For anyone new to securities laws, one of the first things you'll hear and/or learn is the expression, "If it walks like a duck, and talk like a duck, then it's probably a duck!" This means that regulators aren't necessarily looking how a token is built or which blockchain it runs on. What really matters is how it behaves.
See: 10 Insights from IOSCO’s Report for Crypto Investors
Under MiFID II, a token or crypto asset is probably a tradeable security if all 3 conditions are true:
- the crypto asset functions as a payment tool (i.e. not just used to buy stuff)
- the crypto asset belongs to a group or “class” with identical rights (like dividends or votes)
- the crypto asset is tradeable on capital markets
That includes tokenized shares, debt instruments, and some structured products. So if it walks and talks like a stock, Europe will treat it like one. Having said that, if any one of the above conditions is false then it doesn't qualify as a transferable security under EU rules.
Other Financial Products Can Be Tokens Too
Not every token that’s regulated is a stock or share. Some crypto assets are more like short-term loans (or money market instruments). Other tokens might give you a piece of a shared investment fund, placing them in the pooled fund category. Some tokens are derivatives where the price simply follows the price of something else like a stock or index.
See: Crypto Meets Wall Street as SEC Approves Yield Stablecoin
There’s even the potential for carbon credit tokens, if they enable the right to emit greenhouse gases under Europe’s trading system. Each of these different types of token behaviours has its own legal checklist but generally, if a token offers financial returns and matches one of the above types, it will probably be treated as a regulated investment.
Utility Tokens, NFTs & Hybrids? It Depends.
Some tokens are meant to unlock access to perks like discounts, special features, or premium content. The ESMA calls these utility tokens which aren't treated like investments unless they also come with for profit rights or trade on open markets like stock/shares.
Now, what about NFTs in the EU? Just because an NFT may be considered 'unique' doesn't mean it avoids the rules. If the NFT provides financial benefits or trades like a stock, then it could still be recognized as an investment. This is true even for fractional NFTs but if they act like tiny investments then they could be regulated just like regular securities.
See: Stablecoins Are Growing Faster Than You Think
Some tokens combine utility and investment features together and are considered hybrid tokens. In these cases, the ESMA says the financial part trumps the utility part, and like in all cases, if the token looks like an investment, it needs to follow investment rules, regardless how many other functions it provides.
Conclusion
This new crypto guidance (translated versions in multiple languages) helps reduce the grey area between securities and crypto assets. It also puts pressure on projects to think very carefully when designing a token's feature set, value proposition, and how it's marketed. It also shows that regulators in the EU are trying to adapt and not just crack down.
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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Atkins Pushes for Clear Rules, Less Politics at SEC
Regulation | March 27, 2025
Trump’s SEC Pick Vows to Cut Red Tape and Boost Investment
On March 27 2025, Paul Atkins, President Trump’s pick to lead the U.S. Securities and Exchange Commission (SEC), testified before the Senate Banking Committee as part of his confirmation process. While he hasn’t yet been confirmed, Atkins published prepared remarks for his nominee hearing, explaining how he’d run the agency and what he thinks needs to change. Atkins criticized the current state of U.S. financial regulation, calling it a drag on investment and innovation.
Quote Highlights
Below are some key quotes touching upon hot button themes.
See: SEC Policy Reversals and Crypto Case Dismissals
Atkins makes it clear that he wants to reset the SEC's priorities. His approach would focus on transparency, clear rules and making it easier for companies to raise capital:
“The current regulatory environment for our financial system inhibits investment and too often punishes success. Unclear, overly politicized, complicated, and burdensome regulations are stifling capital formation, while American investors are flooded with disclosures that do the opposite of helping them understand the true risks of an investment.”
He promised to keep politics and fraud out of securities laws and regulations:
“I will strive to protect investors from fraud, to keep politics out of how our securities laws and regulations are applied, and to advance clear rules of the road that encourage investment in our economy to the benefit of all Americans.”
While digital assets were just one part of the hearing, Atkins highlighted the need for a clear regulatory framework for crypto:
See: U.S. Senate Moves to Regulate Stablecoins
“A top priority of my chairmanship will be to work with my fellow Commissioners and Congress to provide a firm regulatory foundation for digital assets through a rational, coherent, and principled approach. Since 2017, as I have led industry efforts to develop best practices for the digital asset industry, I have seen how ambiguous and non-existent regulations for digital assets create uncertainty in the market and inhibit innovation.”
What's Next?
While Atkins has finished his SEC nominee hearing in front of the Senate Banking Committee, he still needs to be officially confirmed. The voting outcome could happen quickly or take longer depending on how much push back he gets, especially around his past work, investments and connections to/with the crypto sector.
For example Senator Elizabeth Warren questioned whether those ties could affect how he regulates the space. Critics worry that he might be too soft on the crypto industry or overlook potential risks to investors. If Atkins is confirmed, it will likely end of the regulate by enforcement era that has plagued the U.S. for years, a positive signal for clearer, upfront rules.
Conclusion
Canadian fintechs, investors, and policymakers should be watching closely, as any changes to SEC policy could have ripple effects across markets, especially for firms operating in both countries and could influence cross-border innovation, investment and policy making.
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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