SEC Collaborating on Stablecoin Regulation
…Aims to Attract Credible DeFi Players
By Patience Ikpeme
The Securities and Exchange Commission (SEC) is engaging with developers to collaboratively create a framework for the regulation of stablecoins, according to Dr. Emomotimi Agama, the Director General of the Commission.
Speaking in a keynote address at the 2025 Decentralized Finance (DeFi) conference in Lagos, Dr. Agama stated that the Commission is not looking to contend with DeFi but is instead working to attract credible participants to the digital asset space.
He explained that the Commission “believes responsible DeFi can thrive in a regulated environment, and the SEC is looking forward to enhancing investor education and digital literacy.”
To support this, the SEC is launching a “Crypto Smart, Nigeria Strong” initiative, targeting young investors in schools, universities, and on social media. The programme aims to teach basic blockchain principles, how to identify scams, and the value of long-term investing. Dr. Agama added, “The future of Nigeria’s digital assets ecosystem depends on three pillars: Collaboration, Innovation, and Trust.”
Addressing the future of the sector, Dr. Agama explained, “The road we see ahead is regulatory evolution through an expanded licensing regime. We are enhancing our licensing architecture to make it more efficient, more transparent and more risk-based.” He continued, “Our goal is to attract credible operators while shutting out bad actors by streamlining application timelines, introducing tiered VASP licenses, and incorporating automated compliance monitoring.”
A significant area of focus for the SEC is the exploration of a framework for Naira-pegged stablecoins. Dr. Agama clarified, “These will be fully backed by verifiable reserves, audited regularly by independent custodians, and used for cross-border trade, payments, and programmable finance.” He believes that “Having a framework will allow digital asset innovation to serve real-world economic activity, not just speculation.”
The SEC Director General noted that the Nigerian digital assets industry has experienced a significant boom, observing that over 65% of cryptocurrency users in Nigeria are under the age of 35. “These are digital natives, many of whom are financially excluded or underserved by traditional banking. For them, digital assets represent not just speculation but empowerment, a means to save, invest, transact, and create wealth on their terms,” he stated.
The SEC, Dr. Agama also disclosed, “is also reviewing pathways for digital asset ETFs (Exchange Traded Funds), custodial wallets for pension funds (with Nigeria’s pension fund assets capped at N16trillion), and licensed asset managers offering tokenised securities to institutional investors. This will unlock long-term capital and bring credibility and stability to the sector.”
