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
Global Innovation Regulation 2024 Rankings
Research | March 25, 2025
Image: Global Regulation Index, Innovate UK
Innovate UK Report on 2024 Global Regulation Rankings - Who's Getting It Right?
Last summer, the UK’s national innovation agency, ranked 21 countries on how well their regulators support innovation in sectors like AI, fintech, and health tech. Rather than focusing on the number of innovative policies, competition, or economic growth, the 2024 Global Regulation Index (64 page PDF) looks at how adaptable, collaborative, and forward-thinking each country is when it comes to modern regulation.
How the Rankings Were Built
Countries were scored based on a combination of public data, policy analysis, consultation activity, and expert review. This means the rankings capture both measurable outputs and qualitative factors, such as how willing a government is to try new ideas or adjust outdated rules.
See: UK to Cut Regulatory Red Tape to Boost Tech and Growth
The report scores each country on 37 metrics across five core pillars that reflect how regulators engage with emerging (tech) innovations. In brackets is each pillar's weight to reflect its importance in calculating a country's final score, normalized on a 100 point scale.
- Adaptability (27.5%) – How responsive the regulatory environment is to change
- Clarity & Reliability (20%) – How understandable and stable the rules are
- Collaboration (20%) – How well regulators engage with innovators and stakeholders
- Experimentation (20%) – How often pilot programs or sandbox trials are used
- Entrepreneurship Support (12.5%) – How much the system enables startups to grow
Weighted Contribution Rankings by Country
All 21 countries examined received a total score out of 100, based on weighted contributions from the five categories mentioned above.
See: Innovative Approaches to Smarter Regulation
Here's the full list:
2024 Global Regulation Index – Summary Data Table
| Rank | Country | Overall | Adaptability | Clarity | Collaboration | Experimentation | Entrepreneurship |
|---|---|---|---|---|---|---|---|
| 1 | Singapore | 86.6 | 23.6 | 14.6 | 18.3 | 20.0 | 10.1 |
| 2 | The Netherlands | 83.5 | 20.3 | 15.5 | 18.4 | 19.6 | 9.8 |
| 3 | United Kingdom | 83.0 | 20.0 | 15.2 | 18.9 | 19.3 | 9.6 |
| 4 | Australia | 79.4 | 18.3 | 15.0 | 19.0 | 17.9 | 9.3 |
| 5 | South Korea | 78.8 | 17.9 | 14.3 | 17.7 | 20.0 | 8.9 |
| 6 | Germany | 78.2 | 19.6 | 15.6 | 19.1 | 14.3 | 9.6 |
| 7 | Canada | 77.2 | 17.1 | 15.4 | 15.4 | 20.0 | 9.4 |
| 8 | United States | 76.5 | 19.0 | 14.8 | 13.5 | 19.6 | 9.5 |
| 9 | Austria | 75.1 | 18.6 | 15.5 | 13.2 | 19.3 | 8.5 |
| 10 | United Arab Emirates | 73.1 | 20.9 | 13.8 | 16.5 | 13.6 | 8.4 |
| 11 | Finland | 72.0 | 21.3 | 16.1 | 15.8 | 9.3 | 9.5 |
| 12 | Japan | 69.0 | 16.0 | 13.1 | 16.0 | 14.3 | 9.7 |
| 13 | Switzerland | 68.7 | 14.7 | 16.5 | 15.0 | 15.0 | 7.5 |
| 14 | Norway | 68.3 | 14.7 | 14.1 | 13.9 | 19.3 | 6.4 |
| 15 | France | 67.8 | 18.6 | 15.2 | 11.2 | 14.3 | 8.6 |
| 16 | Sweden | 67.0 | 18.5 | 14.3 | 16.5 | 8.6 | 9.1 |
| 17 | Denmark | 66.6 | 14.9 | 16.2 | 12.7 | 13.2 | 9.6 |
| 18 | Israel | 65.1 | 16.7 | 15.1 | 10.9 | 13.9 | 8.4 |
| 19 | China | 57.3 | 13.0 | 9.3 | 13.1 | 14.6 | 7.3 |
| 20 | Brazil | 54.1 | 10.1 | 12.9 | 12.9 | 10.7 | 7.5 |
| 21 | Mexico | 49.8 | 10.9 | 12.9 | 13.3 | 5.7 | 7.1 |
Ranking Insights
Based on the data and rankings, a country will perform well in this study if they perform highly across the board, from clarity and adaptability to how much they support startups. That's what helps Singapore come out on top. They didn't have the highest score in a single area but they did well on all five, and their consistency makes it the most balanced and reliable regulatory environment for innovation in the study.
South Korea is another good example. It led the rankings in policy clarity and did well in startup support too. With solid scores in adaptability and experimentation, it climbed to second overall. So it's not just about trying new things but about doing them well, consistently, and at scale.
See: Balancing Fintech Innovation and Regulation
The United States had high marks for adaptability and experimentation, which makes sense given its size and diversity of its innovation economy but it scored lower in collaboration and reliability. Likely because it's such a complex regulatory system and federal and state rules often overlap, so it can mean uncertainty and slower timelines for businesses.
Further down the list, sizable economies like France, Germany, and Japan received middle rankings. While their regulations are generally stable and clear they haven't moved as quickly to adapt or test new ideas. A steady approach is predictable but it can hinder innovation when new technologies and/or industries appear.
At the lower end, countries like India, Brazil, and Nigeria scored high in entrepreneurship support (a lot of energy and activity for their startup ecosystems). But they struggled with clarity, coordination, and the ability to keep up with change. The talent and ambition are there but the policy foundation to support it, may be lacking.
Canada Ranks Top in Experimentation But...
Canada’s story is different. It ranked first in the world for regulatory experimentation (actually tied for first rank together with Singapore and South Korea), which means regulators are doing more testing, piloting, and sandboxing than anyone else. That's got to be a positive sign, as it shows willingness to study new approaches whether it's for digital assets, open banking or AI oversight. But experimentation only accounts for a fifth of the overall score and that alone isn't enough.
See: The Crisis Canada and Fintech Can’t Afford to Waste
In other areas like adaptability, clarity, and support for entrepreneurs, Canada lands more in the middle of the global rankings. The real challenge is moving from testing ideas to turning them into clear, national rules that help startups scale and compete. Right now, overlapping rules across provinces and slow implementation timelines are still a barrier for many. So while Canada is active on the front end of innovation, it hasn’t yet turned those efforts into major economic or competitive advantages.
Why This Matters
Good innovation policy isn’t just about making new rules. It’s about building systems that let businesses grow, take risks, and move forward without getting stuck in red tape. Canada's report ranking shows that regulators are starting in the right place by asking questions, running pilots, and listening to industry. But in other countries, those early steps turn into action more quickly. If Canada wants to keep up, it needs to make its rules clearer, reduce overlap between provinces, and move faster to turn pilot programs into policies that business can rely on at scale.
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’s Crypto Roundtable Reveals Friction, Few Answers
Crypto Roundtable | March 25, 2025
Image: Freepik
SEC's First Crypto Roundtable A Step Forward, But Not Far Enough
On March 21, 2025, the U.S. Securities and Exchange Commission (SEC) held its first public roundtable focused on crypto. Interim SEC Chair, Mark Uyeda, delivered opening remarks, and started by admitting that the law hasn't kept pace with digital asset innovation.
See: SEC Commissioner Peirce Consults on Crypto Regulations
Uyeda pointed out that U.S. courts can’t even agree on how to apply the Howey Test, a legal rule from 1946 that’s often used to decide if something is an investment contract. Some courts say what happens after someone buys a token matters most. Others say what happens before the sale is enough. This kind of confusion makes it hard for the industry to know what rules to follow. While the SEC's hope is that the roundtable was a first step towards more clarity and a better approach towards regulating crypto, some lawmakers felt that the SEC's first crypto roundtable was a missed opportunity.
Old Questions, Few Answers
Bitcoin.com reported that the discussions were fiery. Some panelists said most crypto tokens are clearly securities. Others argued the old rules don’t fit new technologies.
- John Reed Stark, a former SEC enforcement official said he believes people are buying crypto to make money and as a result they are 'investors' not hobbyists collecting things. He also said that he's even received threats for supporting stronger crypto regulations.
- enjamin Schiffrin, a policy expert from Better Markets, added that many broker websites list crypto assets right next to displaying stocks and bonds, and if that’s how it’s being offered to the public then it doesn’t make much sense to treat digital assets differently.
- Teresa Goody Guillen, a lawyer at BakerHostetler, asked whether or not a legal rule from the 1940's (aka Howey Test) was even the right tool for crypto? She said blockchain isn’t just a new product, it’s a whole new way of doing business, and old rules might not fit.
As illustrated by the comments above, not everyone agreed and there's still no consensus on how to classify digital assets.
A Missed Opportunity for Coordination
A former prosecutor and crypto lawyer Renato Mariotti penned an OpEd for CoinDesk, said the roundtable was disappointing. While he agreed it was better than the SEC’s past approach of regulating by enforcement, he felt the discussion focused too much on old arguments instead of evaluating solutions.
See: SEC Confirms Crypto PoW Mining is Not a Security
He was also quick to point out that the Commodity Futures Trading Commission (CFTC), another key regulator for crypto, wasn't involved at all or even mentioned during the session. As such the SEC missed a chance to contribute ideas that will help shape new crypto laws currently being discussed in Congress.
Outlook
Industry just wants clear rules, and in order to develop them, it's important for the SEC and CFTC to cooperate with everyone at the table. Lessons to learn here. The next roundtable will focus on DeFi and stablecoins, where clarity is also badly needed.
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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U.S. Deregulates Ownership Rules, Frees Tornado Cash
De-regulation | March 24, 2025
Image: Freepik/wirestock
U.S. Rolls Back Corporate Transparency Rules & Lifts Restrictions on Tornado Cash
On Friday March 21 2025, the Trump administration made two announcements related to the relaxation of financial oversight and corporate transparency requirements. First, the U.S. Treasury removed economic sanctions placed on Tornado Cash originally applied by the previous administration, a popular crypto mixing tool used by money launderers and accused of helping North Korean hackers hide stolen funds. Then secondly, in a separate Interim Final Rule (36 page PDF) issued by the Financial Crimes Enforcement Network (FinCEN), suspending beneficial ownership reporting requirements for most U.S. registered companies and U.S. citizens.
Tornado Cash Sanctions Lifted
Tornado Cash was placed on the U.S. sanctions list in 2022 after allegations it facilitated more than $7 billion in illicit transactions, including over $455 million connected to the Lazarus Group. The protocol operates autonomously on the Ethereum blockchain and is not controlled by any entity. Legal challenges last November, including a key court ruling in 2024, argued that the Treasury had exceeded it's authority in sanctioning open-source software.
In response, the Treasury officially removed Tornado Cash from its sanctions list, acknowledging the legal and technical landscape in the case but emphasized it would continue to monitor national security risks involving crypto. Open source advocates welcomed the decision while lawmakers and cybersecurity experts warned that the move may open the door to continued misuse of the crypto mixing tool by bad actors.
Corporate Transparency Act Enforcement Suspended
Additionally, the U.S. Treasury’s FinCEN divison rolled back key parts of the Corporate Transparency Act that was passed in 2021 to prevent criminals from hiding behind anonymous shell companies. The original law required most U.S. companies to report who really owns them, and about 32 million businesses were expected to comply but now most U.S. firms and citizens no longer have to report ownership. Only some foreign companies still need to file, and they don't have to name U.S. owners.
See: Memecoins, Regulation, and the SEC’s Changing Strategy
The Treasury says the change will reduce costs for small businesses and is part of a broader push to deregulate. Critics warn that it will weaken efforts to fight money laundering and financial crime because without data, investigations will have a harder time tracking illegal activity hidden behind complex company setups.
Implications and Outlook
These changes are being framed as pro-business and innovation-friendly but one questions how the U.S. will continue to meet international expectations around transparency, financial integrity and compliance? For Canadian fintechs, investors and regulators with cross-border interests, due diligence processes will need to adjust in the absence of ownership data from U.S. firms. In the same vein, regulatory checks and balances towards privacy tools in crypto markets could affect risk assessments, partnerships and compliance frameworks.
See: Overcoming Barriers to Growth in Financial Regulation
As most jurisdictions move to strengthen ownership disclosure and digital asset monitoring, the U.S. is going for a lighter touch (and their policy divergence grows wider). Will these changes support competitiveness or increase exposure to financial abuse? Another policy that Canadian fintechs with cross-border engagements need to follow closely and adjust as required.
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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Ottawa Unleashes Policy Blitz to Support Economy
Economy | March 24, 2025
Image: Freepik/rawpixel.com
5 Policy Updates Announced by the Canadian Government to Support the Economy
Ottawa has made a flurry of policy announcements in response to growing economic pressure and global trade tensions including a reversal on the planned capital gains tax, a snap federal election, and commitment to aligning with Europe on carbon pricing to support trade, all in just a few days.
See: Trade War Hits! Markets Roil, What Fintechs Need to Know
For Canada's fintech sector, these changes will impact investment, regulation, taxation and international trade and growth. Below are five announcements made since March 20, 2025, and what they mean for fintech:
1. Capital Gains Tax Hike Cancelled
Prime Minister Mark Carney has cancelled the previously proposed increase to the capital gains inclusion rate, which would have raised the taxable portion of gains above $250,000 from 50% to 66.7% (controversial policy). Also, the government will still increase the Lifetime Capital Gains Exemption (LCGE) to $1.25 million from 2025 which means that entrepreneurs can protect (tax-exempt) an additional $233,164 compared to the LCGE in 2024 ($1,016,836).
That's good news for startup founders and investors. It's supportive of innovation because it rewards risk-taking and helps nurture entrepreneurial talent. Investors may be more willing to back early stage ventures if the tax environment remains favourable at exit, encouraging investment in innovative sectors.
2. Snap Federal Election Set for April 28, 2025
Carney has officially called a snap federal election for April 28, saying he needs a new mandate to deal with growing trade tensions with the U.S., a shaky economy, and pressure to stay competitive on climate and carbon policy. The outcome of a federal election can completely change the country's fintech policy agenda from open banking and digital assets to consumer protection and payments modernization. Regulatory clarity will likely be delayed until after the vote.
3. Corporate Tax Deferrals for Tariff Impacted Businesses & Eased Access to Employment Insurance (EI)
Ottawa will tariff impacted businesses delay their corporate tax payments from April 2 to June 30. This support is primarily targeted at companies that export physical goods that are directly affected by new U.S. tariffs. However, fintech companies with U.S. clients or disrupted revenue may also be considered on a case-by-case basis. If your business has been impacted by the trade situation, it’s a good idea to start gathering records now. More details on who qualifies will be released soon by Finance Canada.
See: Carney Shakes Up Leadership and Vows to Protect Canada
In the same release it was also announced that changes are being made to make it easier for workers laid off due to the trade conflict with the U.S. to access employment insurance. Note, fintech platforms offering tools in job search, benefits/support navigation, short term lending, gig economy income smoothing may also see an increased demand due to the potential impact of job losses.
4. Plan to Eliminate Interprovincial Trade Barriers
Prime Minister Carney announced that Canada will table legislation by July 1, 2025 to remove internal trade barriers between provinces to build a stronger and fairer economy. He plans to eliminate all federal barriers to interprovincial trade and labour mobility, and to remove all federal exemptions under the Canada Free Trade Agreement. He met with the premiers to share his plan of building a stronger Canadian economy including items such as mutual recognition of rules, harmonizing licensing, and standardization of goods and services across provinces. Standardized rules across provinces will reduce costs for businesses and consumers, strengthen domestic supply chains, boost productivity (fewer compliance headaches), and unlock new opportunities for Canadian firms.
5. Trade Diversification + Carbon Border Adjustment Commitment
Last week, Prime Minister Carney visited the U.K. and Europe to stress the importance of Canada strengthening trade ties with reliable partners beyond the U.S.. As part of Canada’s plan to diversify trade, the PM saidthat the EU is moving ahead with its carbon border taxes called Carbon Border Adjustment Mechanism (CABM), so Canada would benefit to keep its industrial carbon pricing system to avoid new tariffs on exports to Europe. This sounds reasonable but there's a trade-off. Since the U.S. won't have the same carbon rules, the higher carbon costs in Canada could make our goods less competitive to our biggest export market - the U.S. Per reporting on the Hub, Carney put it bluntly: “Guess what one of the requirements is to diversify trade with the EU? A form of carbon pricing.”
See: The Crisis Canada and Fintech Can’t Afford to Waste
If The impact on fintechs may be twofold. Clean fintechs involved with ESG, carbon credit tracking/management, sustainability analytics etc stand to benefit but legacy exporters, and fintechs serving them, may feel the cost squeeze of stricter environmental standards.
Closing Outlook
These announcements highlight Canada's evolving federal economy strategy. Ottawa is recalibrating its tax approach, trade perspectives, and domestic relief tools in response to Trump's tariff war and global volatility. Fintech leaders should actively track these changes and be ready to adapt as more policies roll out after the election.
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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Kraken Acquires Retail Futures NinjaTrader $1.5B
Crypto M&A | March 21, 2025
Image: Freepik/wirestock
Crypto Continues to Woo Wall Street, Turning Point for Retail Futures Trading
On March 20 2025, Kraken announced that it has entered into an agreement to acquire NinjaTrader for $1.5 billion, a Chicago-based platform know for providing everyday retail traders access to futures markets, the largest crypto and TradFi deal to date.
Why This Deal Is Different
At first glance, it might seem like U.S. retail traders already have access to both crypto and traditional futures—and technically, they do. For instance, platforms like Interactive Brokers let you trade Bitcoin and oil futures listed on the CME but this experience is still rooted in the traditional finance world. You’re using a conventional brokerage interface with separate workflows for spot crypto and regulated futures, and often without native crypto funding or wallet integration. Coinbase offers small-sized crypto futures (limited derivatives), but you can’t use the same account to trade traditional commodities or financial futures. And many crypto-native platforms don’t offer access to regulated futures at all, especially not in the U.S.
See: CFTC to Launch Digital Asset Pilot Under Acting Chair Pham
What Kraken is building through its acquisition of NinjaTrader is a more integrated setup because they are acquiring a registered Futures Commission Merchant (FCM) license from the U.S. Commodity Futures Trading Commission (CFTC), which allows them to combine regulated futures access with crypto native infrastructure, all under a single app, account, and compliance framework. So Kraken becomes a direct gateway to both crypto and traditional derivatives - a 'one stop shop' for trading everything from Bitcoin to corn futures under a fully regulated setup.
Also there's a global market expansion benefit. Kraken already has licenses in the U.K., Europe, and Australia. Now, with NinjaTrader's U.S. footprint, Kraken can roll out a consistent product across multiple jurisdictions which is something very few companies can do in either the crypto or traditional finance world.
Implications for the Market
This acquisition brings two trading world's together that have mostly stayed separate until now: (1) Crypto trading which is 24/7, quick settlement and lots of innovation (but often kept at arms lengths by U.S. regulators); an (2) Traditional futures trading - highly regulated, slower, and not always that easy for retail traders to access.
Kraken is trying to bridge the gap by creating a unified experience with a single login/dash/account that can hold crypto and cash, offering futures/crypto/FX tools and more, all in one place with real-time settlement and potentially better pricing. It will simplify a lot of friction for retail traders and for professionals, it opens up cross-asset strategies that were harder to execute across multiple platforms before.
See: SEC Drops Yuga Labs Investigation and Kraken Case
Arjun Sethi, Kraken co-CEO:
“Traditional markets run on post-WWII, 1950s banking systems, exchanges that close at 4 p.m. ET and settlement delays that take days to resolve. Crypto rails fixed these issues, operating with efficient and real-time infrastructure. But legacy finance and crypto have remained separate ecosystems, until today. This transaction is the first step in our vision of an institutional-grade trading platform where any asset can be traded, anytime,”
Why It Matters
Kraken’s move to buy NinjaTrader is highly strategic and proves that fintech crypto pltforms can evolve beyond niche products and become full service, bridging traditional finance and crypto. Will Canadian crypto trading platforms be allowed to offer a similar one-stop-shop trading experience, and will Canadian regulators support it?
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 Confirms Crypto PoW Mining is Not a Security
Regulation | March 21, 2025
Image: Freepik
SEC says Proof-of-Work mining doesn’t fall under U.S. securities laws
On March 20 2025, the U.S. Securities and Exchange Commission's (SEC), Corporate Finance Division, issued a statement making it clear that mining crypto on proof-of-work (PoW) networks like Bitcoin isn’t considered a securities transaction. That includes both solo miners (operators) or if someone is part of a mining pool (pooled miners) operating in the U.S. do not need to register with the SEC.
Howey Test Doesn’t Apply Here
This update from the SEC gives the crypto mining community more clarity about where they stand legally in the U.S. as solo or pooled PoW miners. The message is if you’re earning tokens by providing computational effort to secure a PoW network, that doesn't count as investing in a security.
See: Fidelity Report Insights on Digital Assets in 2025
The reasoning is that the infamous Howey Test (used to help determine whether or not an activity is considered a security), is only a security if profits are expected mainly from another party's managerial or entrepreneurial work. In the case of PoW mining, the reward is derived from the miner's own work/effort and hardware, so the activity is not akin to an investment security.
The same statement applies to mining pools where many miners group together and share computing power to improve their chances of solving cryptographic puzzles to earn block rewards. Even when rewards are split and managed by a pool operator, the SEC said the core activity remains technical and administrative, and as such is not an investment contract.
Pushback from Within the SEC, but Industry Welcomes Clarity
Not everyone at the SEC agrees though. Commissioner Caroline Crenshaw issued a dissenting opinion on the same day, saying the analysis was too broad and should be handled on a case by case basis. She warned that some mining setups could involve passive income arrangements that might still fall under securities rules.
See: Marathon Bitcoin Miner Ventures into Whisky Barrels
Still, most reactions online have welcomed the added legal clarity and Bitcoin advocates see this as a win for decentralization. Some have noted that this may influence policy beyond the U.S. and could help shape mining rules in other jurisdictions, such as Canada.
Outlook
While the statement doesn't alter the environmental debates around PoW, it potentially lowers compliance risks and may encourage investment in mining infrastructure. At the end of the day, 'Crypto miners can keep on digging'.
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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Arizona Supreme Court Launches AI Avatar Pilot
AI Innovation | March 19, 2025
Image: Freepik
Can AI Make the Legal System More Transparent and Accessible?
As reported by AP news, the Supreme Court in Arizona has launched two AI avatars called Daniel and Victoria to explain court rulings in simple terms to make the judicial system more publicly accessible. So instead of publishing length, complex legal documents filled with jargon that the average individual can't wrap their head around, the two AI avatars deliver easy to follow video summaries within 30 minutes of the ruling, a game changer compared to traditional video production time lines.
AI Avatars Launched After Controversial Ruling
The initiative was pursued after public confusion and backlash over a controversial ruling that prompted the courts to innovate a a better way to communicate its decisions.
These video summaries can also be quick and digestible in a way that can help build trust in the legal system but some are concerned that the explanations might be unreliable, oversimplified, or misinterpret legal nuances, raising important questions about trust, transparency, and responsible AI.
AI in Public Institutions is Growing
With the use of AI in public institutions is growing, financial regulators may not be far behind. Fintech companies, banks, and regulators globally are already using AI for automated fraud detection, risk assessment, and compliance.
See: Balancing AI Automation and Ethics in Fintech
So we shouldn't be surprised if AI avatars are soon explaining financial regulations and complex tax rules to the public and companies. If so, how do we ensure accuracy and accountability, or will people trust AI to be the messenger?
Conclusion
Canada has yet to test AI in legal or regulatory communications in this way and at this scale but the possibilities are worth considering. Artificial intelligence could play a role in making financial and legal systems more transparent but ethical concerns must be addressed. One to watch and learn, whether this is the future of public engagement and a smarter way to administer at scale.
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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