diff --git a/qa/rpc-tests/bip68-sequence.py b/qa/rpc-tests/bip68-sequence.py
index 377a35b68..33e05dfc5 100755
--- a/qa/rpc-tests/bip68-sequence.py
+++ b/qa/rpc-tests/bip68-sequence.py
@@ -4,7 +4,7 @@
 # file COPYING or http://www.opensource.org/licenses/mit-license.php.
 
 #
-# Test BIP68 implementation (mempool only)
+# Test BIP68 implementation
 #
 
 from test_framework.test_framework import BitcoinTestFramework
@@ -26,8 +26,10 @@ class BIP68Test(BitcoinTestFramework):
     def setup_network(self):
         self.nodes = []
         self.nodes.append(start_node(0, self.options.tmpdir, ["-debug", "-blockprioritysize=0"]))
+        self.nodes.append(start_node(1, self.options.tmpdir, ["-debug", "-blockprioritysize=0", "-acceptnonstdtxn=0"]))
         self.is_network_split = False
         self.relayfee = self.nodes[0].getnetworkinfo()["relayfee"]
+        connect_nodes(self.nodes[0], 1)
 
     def run_test(self):
         # Generate some coins
@@ -42,10 +44,18 @@ class BIP68Test(BitcoinTestFramework):
         print "Running test sequence-lock-unconfirmed-inputs"
         self.test_sequence_lock_unconfirmed_inputs()
 
-        # This test needs to change when BIP68 becomes consensus
-        print "Running test BIP68 not consensus"
+        print "Running test BIP68 not consensus before versionbits activation"
         self.test_bip68_not_consensus()
 
+        print "Verifying nVersion=2 transactions aren't standard"
+        self.test_version2_relay(before_activation=True)
+
+        print "Activating BIP68 (and 112/113)"
+        self.activateCSV()
+
+        print "Verifying nVersion=2 transactions are now standard"
+        self.test_version2_relay(before_activation=False)
+
         print "Passed\n"
 
     # Test that BIP68 is not in effect if tx version is 1, or if
@@ -333,8 +343,12 @@ class BIP68Test(BitcoinTestFramework):
         self.nodes[0].invalidateblock(self.nodes[0].getblockhash(cur_height+1))
         self.nodes[0].generate(10)
 
-    # Make sure that BIP68 isn't being used to validate blocks.
+    # Make sure that BIP68 isn't being used to validate blocks, prior to
+    # versionbits activation.  If more blocks are mined prior to this test
+    # being run, then it's possible the test has activated the soft fork, and
+    # this test should be moved to run earlier, or deleted.
     def test_bip68_not_consensus(self):
+        assert(get_bip9_status(self.nodes[0], 'csv')['status'] != 'active')
         txid = self.nodes[0].sendtoaddress(self.nodes[0].getnewaddress(), 2)
 
         tx1 = FromHex(CTransaction(), self.nodes[0].getrawtransaction(txid))
@@ -381,6 +395,30 @@ class BIP68Test(BitcoinTestFramework):
         self.nodes[0].submitblock(ToHex(block))
         assert_equal(self.nodes[0].getbestblockhash(), block.hash)
 
+    def activateCSV(self):
+        # activation should happen at block height 432 (3 periods)
+        min_activation_height = 432
+        height = self.nodes[0].getblockcount()
+        assert(height < 432)
+        self.nodes[0].generate(432-height)
+        assert(get_bip9_status(self.nodes[0], 'csv')['status'] == 'active')
+        sync_blocks(self.nodes)
+
+    # Use self.nodes[1] to test standardness relay policy
+    def test_version2_relay(self, before_activation):
+        inputs = [ ]
+        outputs = { self.nodes[1].getnewaddress() : 1.0 }
+        rawtx = self.nodes[1].createrawtransaction(inputs, outputs)
+        rawtxfund = self.nodes[1].fundrawtransaction(rawtx)['hex']
+        tx = FromHex(CTransaction(), rawtxfund)
+        tx.nVersion = 2
+        tx_signed = self.nodes[1].signrawtransaction(ToHex(tx))["hex"]
+        try:
+            tx_id = self.nodes[1].sendrawtransaction(tx_signed)
+            assert(before_activation == False)
+        except:
+            assert(before_activation)
+
 
 if __name__ == '__main__':
     BIP68Test().main()