Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Web3, Decentralization, DAOs
Do Kwon Pleas Guilty as Bitcoin Nears Record High
Terra | Aug 13, 2025
Image: Freepik/Wirestock
Terraform Labs Founder Admits to Fraud While Bitcoin at Historic High, Offering Lessons for Innovators
On August 12, 2025, Terraform Labs founder Do Kwon pleaded guilty in a U.S. federal court to fraud charges connected to the $40 billion collapse of TerraUSD in 2022. The plea includes forfeiting more than $19 million and a recommended sentence of up to 12 years in prison, with official sentencing set for December 11, 2025. The development comes as Bitcoin trades near its all time high, shining a light on the incredible appeal and robustness of crypto even with major scandals lurking in the shadows.
Why TerraUSD Crumbled and Bitcoin Held Strong
The timing is ironic, if not remarkable. While one of the most infamous fraud cases in crypto history reaches its turning point, Bitcoin is showing resilience at a price near its all time high. This resilience is grounded in its transparent design and predictable monetary policy. For fintech innovators, it is a reminder that systems with verifiable trust can withstand industry turbulence and public scrutiny.
While Bitcoin is volatile it makes no promise of price stability and operates on open, verifiable code.
TerraUSD was an algorithmic stablecoin designed to maintain a $1 peg without real world asset backing. Prosecutors said Kwon misled investors by failing to disclose the intervention of an outside trading firm to restore the peg during the May 2021 depegging. The collapse revealed a complex and fragile financial system without external audits, reserve transparency, or proven crisis controls.
Integrity and Investor Protection
The Terra collapse destroyed billions in investor wealth and caused severe personal and economic consequences. The $4.5 billion civil penalty Terraform Labs agreed to in 2024 with the U.S. Securities and Exchange Commission confirms that regulators are increasingly prepared to hold firms accountable. Also Kwon still faces criminal charges in South Korea related to the collapse of TerraUSD. If he is removed from the U.S. after serving his sentence, Seoul may pursue extradition to face those charges
See: Brutal Kidnappings Target French Crypto Figures
For fintech builders, protecting investors should not be about checking off a regulatory box but rather a prerequisite for sustainable growth. Product design, public communications, and crisis response must all play a role in a culture of integrity.
Takeaway
The projects that survive and evolve into massive legacies are those that match technical innovation with foundational governance and operational integrity.
Innovation will continue to drive financial change, but trust is the asset that endures.
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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Crypto in Your 401(k)? Trump Opens the Door
Crypto Policy | Aug 11, 2025
Image: Freepik
An Executive Order Could Bring Crypto Into U.S. Retirement Plans
On August 7, 2025, President Trump signed an executive order called, "Democratizing Access to Alternative Assets for 401(k) Investors", directing U.S. regulators to explore ways to allow cryptocurrencies and other alternative assets in defined contribution plans like 401(k)s.
See: SEC Clears Crypto Staking. What It Means for Canada
While it doesn't immediately mean that Americans can directly hold crypto investments in their retirement accounts, it does instruct the Department of Labor (DOL), the Securities and Exchange Commission (SEC), and the Treasury to coordinate on new frameworks that could make it possible. If this happens, it will have significant implications for U.S investors but also for fintech innovators and regulators in Canada who are monitoring trends South of the border.
Executive Order Sets a Regulatory Process in Motion
The order requires the DOL to review and update its fiduciary guidance for retirement plan sponsors, with a specific focus on clarifying what due diligence, risk disclosure, and participant education would be required if crypto were included as an option.
It also directs the SEC to consider revisions to certain securities rules, including elements of the accredited investor framework, that could impact the packaging of crypto investment products for retirement plans.
See: Coinbase MiCA Licence Unlocks Europe Wide Crypto Access
Treasury and related agencies have been tasked with aligning tax, reporting, and compliance rules to avoid conflicting obligations. According to the official fact sheet, the review process is expected to produce proposed rule changes by early 2026.
Opportunities for Diversification and Market Access
Advocates explain that opening retirement plans to digital assets could help diversification and align with investor demand, especially among younger savers who already hold crypto in personal accounts.
This change could also create a massive new liquidity channel for the crypto sector while bringing it further into regulated financial infrastructure, as reported by Forbes.
For fintech and crypto innovators, Trump's executive order could blow up the addressable market for crypto retirement products, custody solutions, and participant education tools.
Fiduciary and Operational Hurdles Remain
With opportunity comes risks of course. The DOL has previously raised concerns about crypto’s volatility, liquidity constraints, and valuation complexities in retirement plans.
See: U.S. Crypto Week Will Impact Global Crypto Policy
Business Insider reported that plan sponsors could face elevated litigation risks if participant loses are tied to crypto holdings, especially without clear safe harbour protections. Implementation also requires custodians and record keepers to adapt their current systems for daily valuations, liquidity management, and tax reporting.
A Canadian Policy Comparison
The U.S. executive order isn't about adding more ETFs to retirement accounts. It opens the door for 401(k) participants to gain exposure to actively managed investment vehicles investing in digital assets and other private market investments, directly within a tax-advantaged plan registered with the government. This could mean direct holdings of Bitcoin or Ethereum, or participation in private crypto funds not listed on public exchanges, if fiduciaries deem them prudent and compliant with ERISA standards.
In Canada, the gap is very real today. Registered plans like RRSPs, RRIFs, TFSAs, and employer pension plans cannot directly hold cryptocurrency. The Canada Revenue Agency’s qualified investment rules prohibit digital assets themselves from being held in registered accounts, whether or not the plan is self-directed. Investors can only gain crypto exposure through qualified investments such as Bitcoin or Ether ETFs listed on a designated stock exchange, or shares of publicly traded crypto companies. Private crypto funds, unlisted trusts, or direct wallet holdings are currently prohibited in all registered accounts.
See: Stronger Teeth Needed to Protect Canada’s IP
If the U.S. implements this framework, Canadian retirement plans would be at a competitive disadvantage in offering digital asset investment innovation. For Canadian fintechs, such U.S. policy could create new product development opportunities south of the border, while providing an unprecedented case study for domestic regulators on how to balance investor protection with access to alternative assets.
Outlook
This latest crypto policy development is another wake-up call and market opportunity for Canadian fintechs and regulators. The next 12 to 18 months will determine whether or not U.S. agencies can produce rules that satisfy both innovation advocates and investor protection, fiduciary watchdogs. If they succeed, Canada’s own retirement savings design could be the next frontier for digital asset integration, and if so, they need to be ready to respond.
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 Launches “Project Crypto” to Unleash Crypto Innovation
Crypto | Aug 4, 2025
Image: Freepik/brgfx
America’s Crypto Power Play Is Real and Canada Needs to Pay Attention
American crypto leadership is back and this time it is strategic. On July 31, 2025, U.S. SEC Chairman Paul S. Atkins delivered a major policy address, American Leadership in the Digital Finance Revolution, outlining a full plan to onshore digital asset innovation and modernize U.S. capital markets.
The centerpiece of the announcement is Project Crypto, a leading Commission initiative that includes new guidelines for tokenized securities, decentralized finance, crypto custody, and financial super-apps. Positioned as a generational opportunity to return blockchain finance to American soil, the strategy aligns closely with President Trump’s policy direction and has immediate implications for Canada’s competitiveness.
Paul Atkins, SEC Chair:
“We will not watch from the sidelines. We will lead. We will build. And, we will ensure that the next chapter of financial innovation is written right here in America.”
Token Issuance Will Move Back Onshore
Chairman Atkins clear states that the SEC will no longer treat most digital assets as securities and will instead create rules that clearly define asset categories.
“Despite what the SEC has said in the past, most crypto assets are not securities.”
Confusion created by the Howey Test has discouraged entrepreneurs from launching token projects in the U.S., but this new framework will encourage American participation and investment. The changes are expected to enable capital formation for crypto projects, and reduce reliance on offshore entities.
Canadian regulators have long pointed to U.S. uncertainty to justify delay. With this new clarity, the bar has been raised. Canada’s sandbox models and exemptive relief approach now risk falling behind.
“A Cambrian explosion in innovation could occur if we stay true to this course,” - SEC Chair Atkins
Rules to Support Tokenized Funds and Super-apps
One of the more significant features of Project Crypto is the SEC’s support for platforms that offer multiple services, combining trading, lending, staking, and payments under a single license. This opens the door for fintechs and broker-dealers to offer tokenized stocks, stablecoins, and on-chain financial services together.
Chairman Atkins also emphasized the SEC’s willingness to enable tokenized capital markets across all asset classes. Read NCFA’s coverage of Robinhood's tokenized securities and tokenized funds for a look at how this trend is already reshaping investment models.
Decentralized Finance Will Be Allowed to Operate in the Open
The SEC now plans to support integration of DeFi into U.S. markets. Atkins outlined a vision for DeFi platforms that do not require intermediaries, provided they meet transparency and code publication requirements. This includes automated market makers and consensus-based networks.
See: SEC Considers DeFi With Innovation Safe Harbour
For Canadian DeFi builders, it's an opportunity to create a presence in a jurisdiction that now welcomes non-intermediated finance, further challenging Canada's policy approach in the space.
Stablecoin Regulation is Now Federally Standardized
With the signing of the GENIUS Act, the U.S. has created a formal federal regime for stablecoin issuance and oversight. The SEC plans to align its rules accordingly and support market structure legislation that complements the Act.
Canada’s own stablecoin policy is still being shaped. See NCFA’s article on stablecoin regulation in Canada for current developments under OSFI.
New Flexibility for Crypto Custodians and Compliance Tools
The SEC will revise outdated custody requirements and support multiple business lines under one registration. This will make it easier for new entrants and regulated institutions to provide safe crypto custody and enable self-custody options. The Commission also highlighted support for protocols like ERC3643 that embed compliance functions directly into token standards that support tokenization of Real-World-Assets (RWA).
Inclusive Public Engagement via Crypto Task Force Roundtables
As part of its strategy to gather industry insights and boost regulatory transparency, the SEC’s Crypto Task Force will host a series of roundtables across the U.S. from August to December 2025, focusing on issues like custody, tokenization, DeFi, and trading infrastructure. These sessions reflect the agency’s intent to involve stakeholders early in the policy creating process and to include perspectives from small crypto startups and innovators
Outlook
Project Crypto is a very real operational directive to all SEC policy divisions. A coordinated national policy backed by the White House and reinforced by the President’s Working Group on Digital Asset Markets.
See: U.S. Maps Out Plan to Lead World in Crypto
For Canada and much of the world, this means the U.S. is will now be one of the preferred destinations for digital asset ventures, tokenized capital formation, and DeFi projects. Canadian stakeholders must respond with a coordinated strategy of their own that modernizes regulation, supports responsible innovation, and protects sovereignty in financial technology. Canada cannot afford to watch from the sidelines. A future of digital finance is being built now, and the center of gravity is moving.
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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xTAO TSX.V Listing Opens Access to Decentralized AI
Listing | July 28, 2025
xTAO Raises $23M and Gains TSX Venture Exchange Listing to Expand Bittensor Decentralized AI Network
On July 23 2025, xTAO Inc announced that it raised $23 million financing round to support the growth of Bittensor decentralized AI network, and that xTAO will begin trading on the TSX Venture Exchange under the symbol XTAO.U.
The funding included $22.8 million dollars through subscription receipts and an additional 200000 shares sold at one dollar each in a private placement on July 21 (shares are subject to a hold period of four months and one day). The company also said that a portion of the proceeds will be used to acquire TAO tokens for its treasury.
A Pubco Entry Point Into Decentralized AI
Bittensor is a blockchain network built specifically for artificial intelligence. Instead of keeping AI models locked inside single companies, it allows developers and organizations to share models and computing power on an open system. The network uses a digital token called TAO to reward those who contribute useful models and resources.
See: Bitcoin Treasury Corp Files Preliminary $300M Prospectus
xTAO’s role is to run the infrastructure that keeps this network running smoothly. Its systems check how well each model performs, and it helps other companies plug into the network so they can use or add to it. The better the network grows and performs, the more value xTAO earns because its operations generate TAO tokens that become part of the company’s own reserves.
Leadership with a Fintech Track Record
The company was founded by Karia Samaroo who previously led WonderFi before its sale to Robinhood. The new capital will be used to expand beyond core infrastructure into tools and services that make it easier for enterprises to build on Bittensor. This approach aims to provide a bridge between the blockchain based network and companies looking to work with decentralized AI.
This listing marks the first time a company focused entirely on Bittensor has entered public markets. It gives investors a regulated way to take part in the growth of decentralized AI without having to hold crypto assets directly.
See: DOGE Aims to Use AI to Cut 50% of Regulations
Investors need to consider the risks of an early stage network and the volatility of the TAO token which will affect the value of xTAO as the company holds TAO as a reserve asset.
Outlook
The listing puts xTAO in a position to act as a gateway between public market investors and a developing decentralized AI ecosystem. It now has new capital to expand infrastructure and create tools that could make Bittensor easier to use. The company’s arrival on the public market is another sign that blockchain projects and capital markets are overlaping as new technologies move into public investment channels.
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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AuCan Backs Viral Gold Game with $10M in Real Prizes
Release | July 24, 2025
Image: Freepik
Gamified Gold Meets Tokenised Assets
On July 24, 2025, Flashy Finance announced a sponsorship with AuCan Gold to launch a new Play for Gold game model that bridges real world assets and Web3 entertainment.
The first title, Dig It, will let users earn digital Nuggets tokens that can be redeemed for tokenised gold prizes backed by physical reserves. Up to $10 million in gold will be distributed across Flashy's game ecosystem, creating one of the largest real world asset reward pools in crypto gaming to date.
See: Strategies for Achieving Product-Market Fit in Web3
The collaboration builds on AuCan Gold’s July 22 launch of a US$2.5 billion tokenised gold platform for accredited investors. This expansion into the gaming market brings that same infrastructure to a new demographic of Web3 users while offering a way to win verified gold exposure through gameplay. Tokens earned in Dig It will be linked to physical gold via redemption programs supported by AuCan’s reserve-backed vault infrastructure.
Turning Gameplay into Gold Ownership
Flashy’s upcoming suite of gold games will reward attention, creativity, and community engagement with real world value. The launch title Dig It is designed as a viral, tap-to-dig mobile experience.
A follow-up AR title called Go For Gold is also in development. In both games, players collect Nuggets tokens, which can be redeemed through licensed programs for tokenised gold ownership. Redemption is governed by smart contracts tied to audited reserves, ensuring that value earned in game corresponds to real gold in storage.
See: Inside OMFIF’s Tokenisation Report: New Rails of Finance
According to Flashy CEO Michael Gord, this model turns gold into a reward for participation. “Through Flashy and its sponsorship program with AuCan, we’re democratizing access to gold by turning it into a reward for creativity, skill, and participation.” The aim is to blend gaming, financial literacy, and decentralised infrastructure into a unified experience that makes asset ownership feel accessible and engaging.
The partnership with AuCan gives it access to compliant, asset-backed instruments that can support meaningful rewards and global scalability.
Closing Thoughts
By integrating tokenised gold into gaming, firms like AuCan are unlocking new ways to distribute real assets at scale. It also allows Canadian companies to tap into global liquidity, not just through institutional channels but through viral, consumer driven platforms.
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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The Rise of the Web3 Nomad: Women Thriving in Decentralized Workspaces
Web3 Jobs | July 23, 2025
The digital workforce is evolving fast. Remote work is no longer a trend - it’s the norm. But there’s a deeper shift happening that’s reshaping how we define work, identity, and opportunity: Web3. And at the frontlines of this revolution? Women. From developers to strategists, artists to marketers, women are carving out space - and power - in the decentralized world of Web3 jobs.
What Is a Web3 Nomad?
A Web3 nomad is a professional leveraging decentralized technologies, crypto networks, and blockchain protocols to work anywhere, anytime - without being tied to traditional employers or physical offices. These aren’t your typical remote workers on Slack and Zoom. They’re part of DAOs (Decentralized Autonomous Organizations), using crypto wallets as logins, earning in tokens, and managing their careers through reputation scores instead of résumés.
This shift isn’t just about new tools. It’s a complete restructuring of how people earn, collaborate, and build wealth online. And it’s drawing in more women than ever before, especially those who’ve been underserved or overlooked in traditional tech sectors.
Why Women Are Winning in Web3
Women are embracing Web3 jobs not because the system is perfect, but because it offers something rare: possibility without permission. Unlike legacy tech industries dominated by gatekeepers, Web3 is still fluid. It rewards output, creativity, and initiative over credentials.
Here’s why Web3 is fertile ground for female talent:
- No Centralized Gatekeepers: You don’t need to “apply” to a DAO; you contribute. If your work is valuable, you get noticed - and paid.
- Pseudonymity Levels the Playing Field: Many women are building strong reputations behind aliases or ENS handles. No bias, just skill.
- Nonlinear Career Paths Are Valued: Women re-entering work after time off or pivoting careers aren’t penalized. Portfolios and participation matter more than job history.
- Global Opportunities: Web3 work knows no borders. You can earn in crypto from anywhere, often higher than local wages.
What Kind of Web3 Jobs Are Out There?
Despite the jargon, Web3 jobs aren’t all about coding. In fact, some of the highest-demand roles don’t require deep tech skills. The space is still young, and it needs a wide range of talent to grow, organize, and communicate.
In-Demand Web3 Roles for Women (and Anyone)
- Community Managers: Keeping Discords active, aligned, and not chaotic.
- Content Creators: Writing blog posts, newsletters, tweets, and educational content.
- Designers & UX Experts: Making interfaces less confusing, more usable.
- DAO Strategists: Helping decentralized orgs set roadmaps, governance, and tokenomics.
- Developers: From smart contracts (Solidity) to frontend dApps.
- Legal & Compliance: Advising on jurisdiction, structure, and regulation.
- Marketing & Growth: Building hype, coordinating launches, managing partnerships.
Every one of these roles exists outside of traditional job boards. Most are project-based or governed by contributor reputation within DAOs. Salaries vary, but in many cases, Web3 pays better than Web2 - especially in token-based systems with upside potential.
How to Break In: Real Steps, Not Fluff
You don’t need to “wait until you’re ready” to enter the Web3 world. Learning in public, contributing to projects, and showing up consistently gets you further than just taking courses or collecting certifications.
Here's how women are successfully landing Web3 jobs:
- Join DAOs: Start with communities like HerDAO, SheFi, or [Women in Blockchain]. They welcome beginners and offer mentorship.
- Learn Out Loud: Tweet what you’re learning, share your journey. The Web3 crowd rewards transparency.
- Volunteer First: Offer to help on a project. Many contributors land paid gigs by first adding value for free.
- Set Up a Wallet: Your wallet is your login and identity. Get one (MetaMask, Rainbow) and understand basic DeFi tools.
- Track Contributions: Use tools like Coordinape, Gitcoin Passport, or Karma to build your reputation across DAOs.
Key Platforms and Tools to Navigate Web3 Work
To navigate Web3 jobs, you need to be fluent with the platforms and tools where work happens. Here's a quick breakdown of where things go down:
- Discord: Where communities gather and roles are posted.
- Mirror: A publishing platform for Web3 writers.
- Snapshot: Where DAOs vote and governance takes place.
- Notion / Airtable: Still huge in organizing decentralized teams.
- Gitcoin / Bankless Academy: Learn and contribute to real open-source projects.
- Talent Protocol: Build a professional profile for Web3.
What Makes Web3 Jobs Different (And Better)
Let’s not pretend this space is perfect - Web3 is still volatile, chaotic, and full of hype. But that’s also what makes it open to disruption and new voices. The reward systems, autonomy, and flexibility are lightyears ahead of anything in corporate tech.
Key advantages of Web3 work:
- Ownership: Earn tokens. Get governance rights. Participate in upside.
- Asynchronous by Default: Work around your own schedule, no 9-5.
- Global Payments: Get paid in stablecoins or crypto, instantly, from anywhere.
- Skill-Based Mobility: If you’re good, you rise fast - no politics, no hierarchy.
For women who’ve been underpaid, under-mentored, or underestimated in traditional tech, these dynamics are a game-changer.
A New Path Forward
Web3 isn’t just changing how we work. It’s changing who gets to lead. And women are already rewriting the script - not as tokens for diversity panels, but as architects of the next digital economy.
See: List of Digital Nomad Visas (TechPats) by Country
From Bali to Berlin, Lagos to Lisbon, a new class of Web3 nomads is rising - self-directed, skilled, and unstoppable. They're building portfolios, collecting tokens, and gaining influence - not just jobs.
If you’re looking for more than a paycheck - if you want autonomy, community, and upside - then Web3 might just be your next move. The ecosystem is wide open. And Web3 jobs are waiting.
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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