Karsten Wenzlaff, Advisor
August 26th, 2025
Enforcement | Sep 15, 2023

Image: Unsplash/Wayne Low
Stoner Cats is a popular adult animated web series that has garnered significant attention in both the entertainment and crypto worlds. The concept of "Stoner Cats" involves house cats that gain sentience after being exposed to their owner's medical marijuana. This marijuana is used to alleviate the symptoms of early Alzheimer's disease. The series released six episodes from July 2021 to December 2022, and boasts a cast of well-known actors, including Jane Fonda, Mila Kunis, Ashton Kutcher, Seth MacFarlane, and Chris Rock.
The creators introduced a unique concept where the Non-Fungible Tokens (NFTs) provided holders with exclusive access to watch the series online. These NFTs were marketed as tickets, with the idea being that the more successful the show became, the more valuable the NFTs would be.
On July 27, 2021, SC2 offered and successfully sold over 10,000 NFTs at approximately $800 each, raising a staggering $8 million from investors. This sale was completed in a record 35 minutes. The NFTs were marketed as a ticket to the Stoner Cats web series, with the promise that the success of the show would directly correlate with the success of the NFTs.
The SEC has formally charged Stoner Cats 2 LLC (SC2) for conducting an unregistered offering of crypto asset securities in the guise of NFTs. This move by the SEC was aimed at ensuring that the creators of Stoner Cats adhered to the federal securities laws. Gurbir S. Grewal, Director of the SEC’s Division of Enforcement, emphasized that regardless -of the nature of the offering, it's the economic reality that determines its classification as an investment contract and, consequently, a security. The SEC's primary concern was that Stoner Cats marketed its expertise in crypto projects and led investors to believe they would profit from selling the NFTs in the secondary market.
Without admitting or denying the SEC’s findings, SC2 has agreed to a cease-and-desist order. They will also pay a civil penalty amounting to $1 million. As part of the settlement, SC2 has committed to destroying all NFTs in its possession and will publish a notice of the order on its official platforms.
This case underscores the SEC's increasing scrutiny of the rapidly evolving NFT space. The regulatory body aims to ensure that firms involved in the production or trading of digital assets adhere to the necessary securities laws. The Stoner Cats case serves as a reminder that while the world of NFTs offers immense potential, it is not exempt from regulatory oversight.
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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Tokenization | Sep 8, 2023

Image: Unsplash/Mathew Schwartz
Swift's groundbreaking experiments unveil the capability to effortlessly transfer tokenized value across multiple public and private blockchains. This innovation could be the antidote to the challenges stifling the growth of the tokenized asset market.
Tokenization, though in its infancy, is capturing the imagination of the financial world. A massive 97% of institutional investors view it as the next big thing in asset management. Its allure lies in its potential to streamline efficiency, minimize costs, and democratize investments.
The diverse landscape of tokenized assets spread across different blockchains presents a significant challenge. Swift's solution provides a unified gateway to these multiple networks, cutting down operational hindrances and the capital required for tokenized asset development.
Swift's experiments weren't a solo endeavor. Major financial powerhouses like ANZ, BNP Paribas, and BNY Mellon were collaborators. Chainlink emerged as a pivotal player, bridging the Swift network with the Ethereum Sepolia network.
Beyond merely showcasing Swift's prowess in blockchain connectivity, the experiments delved into the intricate requirements for engaging with both business and public blockchains. The emphasis on blockchain interoperability protocols underscores the importance of secure data transfers, which has profound implications for future financial systems.
Swift's commitment remains unwavering. Their focus is on identifying and nurturing the most impactful tokenized asset use cases. The immediate future, as predicted, will likely see a spike in the secondary trading of non-listed assets and private markets.
Tom Zschach, Chief Innovation Officer at Swift, perfectly captures the organization's vision, "Interoperability isn't just a concept; it's the very core of Swift's mission." As the world stands on the precipice of a tokenized revolution, Swift's innovations could very well be the catalyst propelling us into a new era.
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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Research | Sep 7, 2023

Image: Unsplash/Jason Dent
Blockchain, the technology underpinning cryptocurrencies like Bitcoin and Ethereum, is inherently transparent. Every transaction is recorded on a public ledger, accessible to anyone. While this transparency is lauded for its ability to reduce fraud and increase trust, it poses significant privacy concerns. Imagine making a purchase and having the entire world privy to it. Not ideal, right?
Ethereum co-founder Vitalik Buterin, along with a team of researchers, recently introduced a concept called "Privacy Pools" in a research paper. This novel protocol aims to enhance transactional privacy on the blockchain while ensuring regulatory compliance.
The core idea? Allow users to publish a zero-knowledge proof that showcases the origin (or lack thereof) of their funds from specific sources without revealing their entire transaction history. In simpler terms, it's like proving you have a $100 bill in your wallet without showing every other item inside.
The co-existence of privacy and financial regulation is not just a possibility; it's on the horizon. Innovations like Privacy Pools are paving the way for a future where businesses can offer consumers the privacy they desire while operating within regulatory frameworks
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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Regulation | Sep 7, 2023

In a media release dated September 7, 2023, IOSCO unveiled nine policy recommendations that span six crucial areas, ensuring a comprehensive framework for DeFi regulation. These recommendations are a testament to IOSCO’s commitment to fostering innovation while upholding market integrity and investor protection.
The six crucial areas covered by the International Organization of Securities Commissions (IOSCO) in their policy recommendations for Decentralized Finance (DeFi) are:
These areas are designed to provide a comprehensive framework for the regulation of DeFi, addressing the unique challenges posed by this emerging sector and ensuring that investors are protected and markets remain stable and transparent.
In a move to promote transparency and inclusivity, IOSCO has opened the floor for public consultation, inviting stakeholders to provide their input on the policy recommendations. The consultation period is set to conclude on October 19, 2023, with the finalization of the DeFi recommendations expected by the end of the year. This collaborative approach ensures that the final policy framework is well-rounded and takes into account the diverse perspectives of all stakeholders involved.
To stay updated on the progress of IOSCO’s DeFi policy recommendations and to contribute to the public consultation, visit IOSCO's official website. Together, we can shape the future of finance and ensure that DeFi reaches its full potential in a secure and regulated environment.
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 Research | Sep 6, 2023

Image: Unsplash/Engin akyurt
As highlighted in the 'Crypto Wealth Report' by Henley & Partners, a select group of 22 individuals stands tall as crypto billionaires, testament to the monumental growth of the industry. The past decade has witnessed the emergence of a new breed of billionaires: the crypto magnates. This cadre of ultra-wealthy individuals owes their colossal fortunes to the burgeoning world of cryptocurrencies, particularly Bitcoin and a variety of altcoins.
According to a recent report from Henley Global, the number of crypto billionaires has seen a significant uptick. Bitcoin alone has been responsible for creating six billionaires, while the broader crypto ecosystem has given rise to an impressive 22 billionaires.
It's important to approach any count of "crypto billionaires" with caution, as the crypto market's volatility and the private nature of many holdings can make exact figures elusive.
The Crypto Adoption Index is a comprehensive metric that evaluates countries based on their receptiveness and infrastructure for cryptocurrencies. The index considers various parameters, allowing users to customize the index based on factors that are most relevant to them. Here's a breakdown of the top countries leading the crypto adoption race in 2023:
Metrics tracked by the Index:

Canada's position in the global crypto adoption index provides an insightful perspective into its stance and environment regarding cryptocurrencies. Let's break down the various parameters and analyze Canada's ranking:
Canada exhibits a healthy environment for crypto, backed by solid infrastructure and a conducive regulatory landscape. However, to climb the ranks further, there's a need for more public awareness, technological innovation, and perhaps a more encouraging tax policy. Recently, the Canadian government published 16 recommendations calling for a National Blockchain Strategy to support adoption and growth.
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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DeFi | Sep 1, 2023

Image: Unsplash/Wesley Tingey
"As set forth in the remainder of this Opinion, the Court dismisses their complaint in full."
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, 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 Enforcement | Aug 28, 2023

Image: Pixabay/TheDigitalArtist
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, 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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NCFA Canada
Craig Asano
CEO and Executive Director
casano@ncfacanada.org
ncfacanada.org


