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
Gensler’s Final Salvo as SEC Targets Unicoin in Crypto Clash
Enforcement | Dec 17, 2024
Image: Freepik/pikisuperstar
Unicoin Receives SEC Wells Notice During Gensler's Final Weeks at the SEC
As reported by Fortune, crypto tokenization and real-world-assets (RWA) juggernaut, Unicoin, received a Wells Notice from the SEC as they prepare for a major transition with new leadership direction. Yes, still turbulence in the industry with Gensler stepping down on January 20 and new SEC Chair, Paul Atkins, set to take over the helm. Unicoin CEO Alex Konanykhin indicated they will fight back against allegations of fraud and unregistered securities.
Unicoin’s Inability to Register Token as Security
Launched in 2015, Unicoin is a cryptocurrency that is backed by real-world assets like real estate, which gives the token a tangible value instead of the market relying solely on speculation. This helps reduce price volatility and attracts investors looking for more secure opportunities.
The company also marketed itself as the official cryptocurrency of a TV show called Unicorn Hunters where startups pitch to celebrity judges, which helped it gain a lot of visibility and approx 70,000 investors via $3.5 billion in token sales. Their popularity also attracted the SEC's attention. The Wells Notice accused Unicoin of both securities violations and also fraud which hasn't been included in recent SEC-driven crypto lawsuits.
See: Insights from the Tokenization Report Act of 2024 Hearing
Unicoin's CEO Konanykhin told Fortune that while the company has faced several SEC investigations this is the first time it has received a Wells Notice. Earlier this year, Unicoin agreed with the SEC to hold off on launching a public offering but chose to move forward with the company’s plans and launched its primary offering on a U.S. regulated trading platform INX.One after Trump's election victory and that Unicorn had publicly reported to the SEC for the past five years including recent paperwork signalling its intent to go public via a reverse merger.
With the pro-crypto advocate, Paul Atkins imminently replacing Gensler, Unicoin was banking that the regulatory environment would be more collaborative. At the end of the day, the firms inability to register their token as a security has left if vulnerable.
What This Means for Industry
Regulation won't change overnight and enforcement actions launched under Gensler will still be ongoing. Crypto companies should expect a more gradual shift to the SEC's regulatory approach and need to weather the storm during the transition.
See: 18 States Sue SEC for Regulatory Overreach on Crypto
Unicoin's Wells Notice also included allegations of fraud which raise the stakes. Companies should review and tighten their compliance efforts further. Linking crypto to real-world asset models indicate how tricky it is to align financial innovations within existing securities laws.
In Closing
As the SEC's leadership is in a transitional phrase, uncertainty still remains.
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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LQwD Joins Microstrategy’s Bitcoin for Corporations
Crypto | Release | Dec 4, 2024
Image: Bitcoin for Corporations (website)
LQwD Technologies Joins Microstrategy-led Bitcoin for Corporations as an Executive Member
LQwD Technologies Corp., a leader in Bitcoin infrastructure and payments, has joined Bitcoins for Corporations (view press release) spearheaded by MicroStrategy in partnership with Bitcoin Magazine with the aim of accelerating corporate adoption of bitcoin. It's a hub for learning, collaboration and leadership and now Canadian fintech, LQwD, is at the forefront of the movement.
See: Unlocking Web3 – What Every Founder Needs to Know
As an Executive Member, LQwD gains access to exclusive resources, networking opportunities, and the collective knowledge of other innovative businesses. LQwD is no stranger to driving Bitcoin adoption. The company announced just last week that they have facilitated over 1 million transactions across its Lightning Network channels (transferring approximately 857 Bitcoin) with over half of these transactions occurring between Jan 1 to Oct 31, 2024, showcasing LQwD's rapid growth.
Why It Matters
For companies looking to stay ahead in the evolving and fast paced world of finance, this initiative is chance to connect and learn from top crypto experts.
Other recent articles you may like
- Resurgence of Cryptoassets in Canada’s Investment Landscape
This article talks about how digital currencies are becoming more popular with Canadian institutional investors. It highlights key findings from a 2023 survey on how institutions are adopting crypto assets. - Canada to Enforce Cryptoasset Reporting by 2027
The Canadian government is working on new rules for cryptoasset reporting that will be in place by 2026 (reporting enforced by 2027). These regulations are designed to align with global transparency standards and provide more clarity for crypto investors and businesses. - Regulatory Updates for Crypto Asset Trading Platforms
This piece breaks down updates from the Ontario Securities Commission on what crypto trading platforms need to do to stay compliant. It’s all about meeting regulatory standards and ensuring a level playing field for everyone.
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 vs. Canada: A Tale of Two Different Crypto Consumers
Crypto Survey Results | Dec 3, 2024
Key Insights from the UK FCA's 2024 Crypto Consumer Research Survey
On Nov 26, 2024, the Financial Conduct Authority (FCA) published results from its latest 2024 Cryptoassets Consumer Research Survey. The UK-based survey is in Wave 5 which is part of a longitudinal survey designed to track insights and trends over time given that attitudes towards cryptoassets can evolve.
Download the 80 page PDF survey results report here
The survey data was collected from August 12-21, 2024 via an online self-completion questionnaire. Participants were sourced from the YouGov panel in two phases (groups) to ensure a diverse cross-section of the UK adult population.
- Phase 1 was a national sample of 2,199 UK adults
- Phase 2 follow-up was 1,097 cryptoasset users (active or former) to gain deeper insights
Key Findings
Awareness
- 93% or nearly all adults in the UK are now aware of cryptoassets (slight increase from 91% in 2022).
- Men are more likely to have heard of cryptoassets (96%) compared to women (90%).
Ownership Trends
- Cryptoasset ownership has grown to 12% of UK adults or 7 million people (up from 10% in 2022). This is a significant increase from 2020 where only 4% of UK adults owned cryptoassets.
- Ownership is higher among younger individuals (24% of those aged 18-34) and those with annual household incomes exceeding £100,000 (25%).
- Men are more likely to own crypto (19%) than women (9%).
Usage and Investment Motivations
- 36% buy crypto as part of an investment portfolio.
- 26% see it as a gamble for significant gains or losses.
- Long-term saving and day trading are also popular and increasing motivations.
See: 10 Insights from IOSCO’s Report for Crypto Investors
- More users are holding crypto: £1,001–£5,000 (17%, up from 14% in 2022) and £5,001–£10,000 (19%, up from 6% in 2022). About one-third (32%) still hold crypto valued at £100 or less.
- 67% of crypto owners have used their assets in some way. The most common use is converting cryptoassets into currency (43%).
Advertising and Its Impact
- 38% of crypto-aware individuals said they remember seeing crypto adverts primarily on social media (44%).
- 18% felt curious after seeing ads but it wasn't enough to buy.
- 10% were influenced to purchase crypto.
- Crypto ad awareness is higher among younger respondents and men.
Risks and Challenges
- 9% of crypto users said they were victims of scams including fake social media endorsements and phishing.
- 90% of the scam victims said they lost money (20% reported losses of over £1,000).
- 20% of crypto users mistakenly believe they are financially protected against losses (up from 10% in 2022).
Regulation and Consumer Perceptions
- 58% of users said they were comfortable trading in an unregulated market.
- 27% of users said they would invest more if cryptoassets were regulated, and another 25% would invest if regulation included financial protection for losses.
- Only 8% of non-crypto users said they would likely invest more, if the market were regulated.
See: Report Insights: DIY Investors in Canada on the Rise
Emerging Trends
- 27% of users said they participated in staking in the past year. 9% participated in lending or borrowing cryptoassets.
- 72% of crypto purchases were funded with disposable income. Credit card payments doubled to 14%.
- 72% store crypto on the exchange where they purchased it.
AI Image
So How Do UK and Canadian Retail Investors Compare?
Comparing the above 2024 cryptoaseets research by the FCA with the Crypto Asset Survey conducted by the Ontario Securities Commission (OSC) in 2023 reveals some interesting differences between retail crypto investors in the two countries.
1. Ownership Trends
Crypto ownership is on the rise in the UK with 12% of adults now owning cryptoassets (up from 10% in 2022). This growth is fuelled by younger adults, higher-income households, and a more optimistic view of crypto’s future utility.
See: Wealth Management Insights for Fintechs and Investors
Crypto ownership in Canada declined from 13% in 2022 to 10% in 2023. Many Canadians are still cautious and concerns about risk, volatility, and lack of understanding, slowing adoption.
2. Engagement and Usage
UK investors are more active users of their cryptoassets. 67% of crypto owners in the UK report using their holdings for various purposes, such as converting to fiat currency (43%) or trading between cryptoassets (33%). This indicates a shift toward integrating crypto into financial strategies.
In Canada, engagement remains lower. A significant proportion of Canadians (30%) report never using their crypto after purchase. When used, the most common activity is converting crypto to fiat currency (25%). This suggests many Canadians view crypto as a speculative asset rather than a functional tool. Worth noting that the OSCs survey was in 2023 so perspectives could very well be changing, especially in the current bull run.
3. Risk Perception and Confidence
Crypto's risk perception in the UK is more balanced. While 58% of UK investors are comfortable trading in unregulated markets, many still express interest in clearer regulations, with 27% saying they’d invest more if the market were better regulated.
Canadians are more skeptical of crypto. 77% expressing regret over their purchases (far higher than 20% reported in the UK). Nearly half of Canadians (49%) cite risk as their main barrier to investing, and confidence in the ability to buy or sell crypto in the future is low (16% highly confident).
4. Knowledge and Awareness
Awareness of cryptoassets is much higher in the UK with 93% of adults familiar with the concept. Many UK investors also demonstrate a deeper understanding of crypto’s potential, treating it as a diversification tool within their broader financial portfolios.
See: Overcoming Barriers to Growth in Financial Regulation
In Canada, only 54% of respondents could correctly define cryptoassets, and many rely on informal sources like friends or social media for information. This knowledge gap contributes to poor decision-making and higher regret.
5. Advertising and Influence
Both countries report significant exposure to crypto advertising, primarily through social media. However, UK investors appear better equipped to evaluate such promotions. In the UK, 10% of individuals reported purchasing crypto due to advertising while Canadians, despite similar ad exposure, showed greater regret about purchases influenced by these ads.
In Summary, the characteristics between UK vs Canadian retail investors is as follows, do you agree?
As per the FCA's 2024 cryptoasset survey, UK retail crypto investors tend to be more involved and optimistic and are using crypto as part of a broader financial plan. They actively use their crypto and recognize its use beyond just making a quick profit.
See: Canada’s Proposed Mutual Fund Crypto Regulations 2024
Accordingto the 2023 OSC crypto assets survey, Canadian retail crypto investors are more cautious and focused on quick gains. They use crypto less often and are more likely to feel regret about their investments and may reflect uncertainty or confusion about how crypto fits into their financial goals.
Why Such a Difference?
Regulatory Environment
In the UK, the FCA has worked to build trust in crypto by creating clear rules and educating people about safe trading. These efforts have helped reduce confusion and fear around using crypto.
In Canada, while regulators have made strides in creating balanced regulations, over half of people don’t know about these crypto regulations, and a third mistakenly think there are no rules at all. This uncertainty makes people more skeptical and less likely to get involved in crypto.
Market Maturity
The UK’s crypto market appears more developed with many investors actively using their crypto for things like trading, converting to cash, or earning through activities like staking. These actions show that people in the UK see crypto as a tool they can use in their financial lives, not just something to buy and hold.
See: UK’s Regulatory Crypto Roadmap from Sandbox to Mainstream
In Canada, according to the survey data, many people buy crypto but don’t use it much beyond that and there are fewer options like staking or other services that are widely available. This makes crypto feel more like a speculative investment than a practical financial tool.
Cultural Attitudes Toward Risk
Canadians tend to be more risk-averse with nearly half perceiving crypto as too risky to consider. *Update* Worth considering if the way the OSCs 2023 crypto asset survey results are 'over-egged' in the way risks are presented while shying away from reporting the positives (not balanced), and as unintended (or intended) consequences go, the OSC may just be unfairly miseducating consumers causing slower adoption in Canada?
In the UK, while investors do have risk concerns they are more likely to integrate crypto into diversified portfolios, helping them to balance risk vs reward with a long term view.
How Canada Can Close the Gap
- Simple, transparent rules for crypto and communicate it widely so investors feel more confident in participating.
- Run public education campaigns to teach people about the benefits and risks of crypto. Work with industry associations, schools, financial experts, and regulators to make crypto easier to understand.
- Highlight more real life use cases of how crypto can be used for things like international payments, staking, or decentralized finance (DeFi). Help people see it as a useful tool, not just a risky gamble.
See: UK Proposes Bill to Recognize Crypto as Personal Property
- Train advisors to talk about crypto with clients. This can help investors make smarter decisions instead of relying on advice from friends or social media.
- Set clear rules for crypto ads to prevent misleading claims. Require clear explanations of risks to reduce regret after purchases.
- Encourage Canadian platforms to offer more services like staking and educational tools. A wider range of options will help attract more active and confident investors.
Conclusion
According to survey results, Canada and the UK have taken different paths in their crypto markets. While UK investors are confident and actively use crypto as part of long-term financial plans, Canadians remains cautious, speculative, and less engaged. To close this gap, Canada must focus on clear regulations, better education, and highlight crypto's practical use cases beyond speculation.
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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Trump Media Files Trademark for Crypto Platform ‘TruthFi’
Crypto | Nov 27, 2024
Image: Freepik
Trump Media Group Trademarks 'TruthFi' for Crypto Payments Platform
Trump Media & Technology Group (TMTG) who owns Truth Social recently filed a trademark application to the U.S. Patent and Trademark Office (USPTO) for "TruthFi", a cryptocurrency payment platform on November 18, 2024.
Based on the trademark application filing, TruthFi will be a platform to facilitate cryptocurrency transactions, so digital asset services could involve a digital wallet, card payment processing, asset management, custody or trading. Details and launch date were not mentioned but the filing aligns with TMTGs announcement to expand into digital asset services.
Conflict of Interest?
As Trump broadens his interest and assets in the world of crypto, it raises questions about conflict of interest issues given that Trump has dual roles as President-elect AND the owner of businesses that could benefit from favourable regulations. Also, Trump has previously declined to divest from his business empire and has not suggested that he has plans to do so during his upcoming term.
See: Meme Coin Chaos and Wild West of Viral Tokens
Richard Painter, Ethics lawyer:
“It’s a huge problem but it’s not a Trump specific problem. Just like it’s a huge problem that members of Congress are trading crypto while they fail to pass legislation regulating crypto and accept huge amounts of donations from the crypto industry.
President Trump ought to do what every other president has done: Divest personal assets, Trump Organization assets, everything that creates a conflict of interest with his official duties. And that includes Truth Social and crypto.”
Broadening Crypto Involvement
- Trump's campaign promise was to make the U.S. the “crypto capital of the planet.”
- He also vowed to replace outgoing SEC Chairman Gary Gensler with a more crypto-friendly appointee.
- He's launched several Trump-related digital NFT collectibles (Mugshot Edition, Trump Cards)
- Reportedly, Trump is in discussions to purchase crypto trading platform Bakkt (news drove up stock price by 160%)
- In September, Trump launched World Liberty Financial, another crypto-focused business. (Justin Sun, Founder of Tron Blockchain, purchased $30 million of WLFI tokens)
- Trump's family also launched crypto platform the 'Defiant Ones
The Bigger Picture
Trump's new trademark and growing interest in cryptocurrency shows how closely his businesses are getting involved with the crypto world.
See: Gary Gensler Resigns as SEC Chair, Leaving January 20
As his administration takes office in the new year, the decisions it makes about crypto regulation will shape the future of the sector in the U.S. while also likely benefiting his own companies profit.
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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Bitcoin’s Evolving: The Rise of DeFi on Bitcoin
November 27, 2024
Image: Unsplash/Brian Wangenheim
Bitcoin has long been celebrated as a decentralized digital currency and a store of value. However, its functionality has traditionally been limited to peer-to-peer transactions and as a store of value.
In recent years, the landscape has shifted with the emergence of Decentralized Finance (DeFi) on Bitcoin, expanding its utility beyond simple transactions to encompass a wide array of financial services. This evolution is transforming Bitcoin from a static asset into a dynamic platform for financial innovation.
Read on to learn more about the growing DeFi ecosystem on Bitcoin.
The Emergence of DeFi on Bitcoin
Decentralized Finance (DeFi) refers to a suite of financial services built on blockchain technology that operate without traditional intermediaries like banks or brokers.
By leveraging smart contracts—self-executing contracts with the terms directly written into code—DeFi platforms enable users to engage in activities such as lending, borrowing, trading, and earning interest in a decentralized, permissionless manner. This paradigm shift offers greater accessibility, transparency, and control over financial assets.
While Ethereum has been the frontrunner in the DeFi space due to its robust smart contract capabilities, Bitcoin's entry into DeFi marks a significant milestone.
Historically, Bitcoin's scripting language lacked the flexibility required for complex smart contracts, limiting its use cases. However, technological advancements and the development of Layer 2 solutions have paved the way for DeFi applications on the Bitcoin network.
Example of Bitcoin Layer 2 Solutions Enabling DeFi Powered by Bitcoin
To overcome Bitcoin's inherent limitations, developers have introduced Bitcoin Layer 2 protocols that enhance its functionality. Examples of three exciting off-chain scaling protocols include Rootstock (RSK), Stacks, and Build on Bitcoin (BOB).
Rootstock (RSK)
RSK is a sidechain that brings smart contract capabilities to Bitcoin. Using a two-way peg, it allows BTC to be converted into rBTC, which can then be utilized in various DeFi applications built on the RSK platform.
This integration enables functionalities such as lending, borrowing, and trading within the Bitcoin ecosystem.
Stacks
Stacks is a Layer 2 platform that introduces smart contracts and decentralized applications (dApps) to Bitcoin. It operates using a unique consensus mechanism called Proof of Transfer (PoX), which anchors Stacks' security to the Bitcoin blockchain.
This design allows developers to build complex applications while benefiting from Bitcoin's security and stability.
BOB (Build on Bitcoin)
BOB is a hybrid layer-2 solution that combines the security of Bitcoin with the versatility of Ethereum. It allows developers familiar with the Ethereum Virtual Machine (EVM) to start building on Bitcoin immediately, utilizing best-in-class EVM tooling, wallets, analytics, and blockchain infrastructure.
BOB inherits security from Bitcoin's Proof of Work (PoW) consensus mechanism, contributing to Bitcoin's economy and providing usable decentralization for builders today. Additionally, BOB connects to both Bitcoin and Ethereum, sourcing liquidity from the two largest blockchain ecosystems and positioning itself as a leading solution for DeFi mass adoption.
Bitcoin DeFi Applications and Use Cases
The integration of DeFi into the Bitcoin ecosystem has led to the development of various applications that mirror traditional financial services.
Decentralized Exchanges (DEXs)
Platforms like Sovryn, built on RSK and BoB, offer decentralized trading services where users can swap tokens directly from their wallets without relying on centralized exchanges. This model enhances security and reduces the risk of hacks associated with centralized platforms.
Lending and Borrowing Protocols
Bitcoin DeFi protocols such as ALEX on Stacks or Liquidium on the Bitcoin network enable users to lend their assets to earn interest or borrow against their holdings. These services operate without intermediaries, providing more favorable terms and greater accessibility to users worldwide.
Stablecoins
Stablecoins pegged to fiat currencies are being introduced on Bitcoin's network through platforms like Sovryn's Sovryn Dollar (DLLR). These assets offer stability in value, making them suitable for everyday transactions and as a hedge against volatility.
DeFi Wallets
Wallets designed for DeFi, such as the Xverse DeFi Wallet, OKX Wallet, and Leather, are gaining traction within the Bitcoin community. These wallets not only provide a secure way to store bitcoin but also integrate features like token swaps and access to DeFi applications on Layer 2 solutions. Their user-friendly interfaces make it easier for users to interact with the Bitcoin DeFi ecosystem.
The Future of DeFi on Bitcoin
The integration of DeFi into the Bitcoin ecosystem is still in its nascent stages but holds significant promise.
As technological advancements continue and Layer 2 solutions mature, Bitcoin's role in the DeFi space is expected to expand. This evolution could lead to a more inclusive financial system, leveraging Bitcoin's security and decentralization to offer a wide array of financial services to users globally.
The rise of DeFi on Bitcoin represents a pivotal development in the cryptocurrency landscape. By extending Bitcoin's functionality beyond a store of value to a platform for decentralized financial services, it opens new avenues for innovation and adoption.
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. Bets Big On Crypto and What It Means for Canada
Crypto Policy | Nov 21, 2024
Image: Freepik/pvproductions
The U.S. is Making Bold Moves in Crypto
President-elect Donald Trump and his administration are gearing up for key leadership changes to drive innovation policy in the world's largest economy. This includes everything from appointing a new crypto-savvy SEC Chair to a new White House 'crypto czar' and the idea of a U.S sovereign wealth fund backed by digital assets. These policy changes will have ripple effects beyond American boarders. Canada needs to rethink its own strategies to remain competitive.
Who Will Lead the SEC?
It's no secret that the current SEC Chair, Gary Gensler, is considering stepping down after a controversial three and a half years in the post. Reports are saying that Gensler will leave before the end of his term, as early as after U.S. thanksgiving. So with that out of the way, the race to a new SEC Chair is heating up and according to prediction market Kalshi, as of today, the top 3 leading candidates and their odds are:
See: Detroit to Accept Crypto for Taxes with PayPal
- Brian Brooks (33%) - Former top U.S. banking regulator and strong supporter of clear crypto rules and blockchain innovation.
- Robert Stebbins (25%) - Experienced lawyer and former SEC legal chief, known for balancing new tech with investor protections.
- Teresa Goody Guillén (16%) - Blockchain attorney and innovation advocate with deep expertise in digital assets and crypto policy.
The winner will redefine how the SEC approaches crypto policy potentially transitioning from what can only be called aggressive enforcement to a more collaborative approach that also benefits industry. This is one to watch however, thinking back to Gensler's appointment, the crypto industry thought he might be a positive influence on crypto given that he taught a crypto course at MIT Sloan's School of Management and understood blockchain and was also considered more progressive than his peers at the time.
A White House “Crypto Czar”?
Also, Trump's team is considering the creation of a White House crypto advisor position. This 'crypto czar' would act as point on federal policies related to digital assets and help bridge gaps between regulators, policymakers, and industry to help centralize decision making and establish a more transparent path for cyypto innovation in the U.S.
Brian Armstrong on Crypto Dividends for Americans
The CEO of Coinbase, Brian Armstrong, suggested that given America's $35 trillion dollar massive debt, the U.S. should diversify revenue sources and create a sovereign wealth fund and that crypto revenue generated would be distributed as dividends directly to every day Americans saying on X, "Every citizen then has skin in the game. Maybe Congress gets a slightly larger stake".
See: Investing in the Future of AI and Blockchain
The idea has sparked a lively debate. Supporters like Cathie Wood of Ark Invest believes that the idea is transformative and could boost economic freedom and support long term growth. Skeptics on the other hand like Economist Peter Morici highlight the challenges saying it could work but it would require a clear source of funding and national consensus on long term objectives.
Implications for Crypto Regulation
These U.S. crypto manoeuvres will only have a positive impact on crypto given how drastic the current situation is with Gensler at the helm who preferred to regulate by enforcement rather than establish a clear framework for crypto.
- A new SEC chair who understands crypto could bring clarity to whether digital assets are considered securities or commodities, which would reduce the confusion that companies and investors have to deal with today (along with the litany of wells notices).
- Appointed leaders that are pro crypto might prioritize policies that support blockchain technology in effort to help the U.S. lead the global tech race.
- There will be way more collaboration with industry, if the SEC moves away from strict enforcement to having more open conversations with businesses to create a fairer and more supportive regulatory environment for crypto.
The Canadian Perspective
With the U.S. making innovative and bold moves in Crypto, the pressure is heating up for Canada to do the same to remain competitive, or risk falling behind. A friendlier crypto market in the U.S. with a clear regulatory framework could attract top Canadian crypto innovators to leave South.
See: Canada and Trump Risk Index What Fintechs Need to Know
Varying rules north and south of the border will create friction for companies looking to operate in both Canada and the U.S. if rules are different. There's an opportunity for Canada to align with the U.S. on fintech policies which would strengthen North American competitiveness as well.
The Takeaway
As the U.S. is guns a blazing in crypto policy with leadership changes and bold initiatives that could significantly transform industry, Canada needs to adapt quickly to remain competitive or risk falling behind as the U.S. tries to establish itself as a global leader in blockchain innovation.
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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Elon Musk’s X Challenges California’s Deepfake Law
AI and Tech Regulation | Nov 18, 2024
Image: Freepik/pikisuperstar
Elon Musk’s X lawsuit Over California’s Deepfake Law Ignites Debate on Free Speech, AI Ethics, and the Future of Tech Regulation
On Sept 17, 2024, the Governor of California, Gavin Newsom introduced the Defending Democracy from Deepfake Deception Act of 2024 (otherwise known as Assembly Bill 2655). It's a new law aimed at curbing the growing issue of AI-generated deepfakes, especially those that could mislead voters during elections. The law requires platforms like X (formerly Twitter) to either label or remove deceptive content related to elections.
Then on October 3, 2024, a federal judge granted a preliminary injunction which temporarily blocked the enforcement of AB 2655 based on concerns that the law might infringe upon First Amendment rights by potentially suppressing free speech.
See: California’s AI Safety Bill Veto and Its Impact
Then last Thursday, Nov 14, 2024, Elon Musk's X has filed a lawsuit in Sacramento against the legislation arguing that it infringes on free speech rights protected by the First Amendment. X's legal challenge highlights the ongoing conflict between maintaining freedom of expression versus curbing the misuse of deepfakes that erode trust in institutions and manipulate public opinion.
Insights
- The amount of deepfake content online has been exponentially doubling between 2018 and 2020. There's been a noticeable increase in cases targeting political figures and events.
- In July 2024, Musk shared a deepfake video of Vice President Kamala Harris on X that went viral but he forgot to mention that it was a parody. In response, California's Governor Gavin Newsom stated, "Manipulating a voice in an 'ad' like this one should be illegal. I'll be signing a bill in a matter of weeks to make sure it is.".
- The purpose of California’s AB 2655 legislation is protect election integrity by preventing manipulative deepfake content from spreading misinformation. Critics argue that the law is too broad and that it may impact artistic expression, satire and even legitimate political commentary.
"[The law] will inevitably result in the censorship of wide swaths of valuable political speech and commentary and will limit the type of 'uninhibited, robust, and wide-open' debate on public issues that core First Amendment protections are designed to ensure."
Rob Bonta, California Attorney General said last Friday:
"The California Department of Justice has been and will continue to vigorously defend AB 2655 in court, which aims to combat deepfake election content."
Why It Matters
This case is a key test for how governments and tech companies handle the rising influence of AI while protecting basic rights.
See: Three Generations Discuss AI Concerns, Hopes, and the Future
The decision will have significant impact into how technology is regulated from an election misinformation standpoint to broader AI abuses. For Canada and other countries, it provides valuable lessons on the need create laws that balance innovation, ethics, and public trust.
Conclusion
The lawsuit isn't just about California but it's a global conversation on how societies will balance freedom and accountability in the digital age. As AI technology evolves at a dizzying pace, societies must answer tough questions about who holds power in the digital world and how to ensure that power is used responsibly.
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