Moderated by former CFTC Commissioner Jill Sommers and SEC Division of Trading and Markets Director Jamie Selway, the panel brought together some of the most influential voices in global markets. It was the first joint roundtable conducted with the SEC and CFTC in 14 years.
The conversation centered on a critical question: How can futures, equities, options and digital-asset venues converge on consistent standards for execution, clearing, disclosure and investor access without slowing the pace of innovation?
Our message was clear: Tokenization is infrastructure modernization, and harmonized rules are the bridge from today’s fragmented systems to tomorrow’s open, efficient markets.
Why this roundtable matters
Chairman Atkins opened with a call for unified oversight: “The fragmented, convoluted system ends now.” CFTC Commissioner Caroline Pham echoed the sentiment, noting this was the first joint SEC–CFTC roundtable since Dodd-Frank, marking “a new day” for cooperation.
That backdrop is important. For decades, securities and derivatives markets have evolved under separate statutes and mandates. As tokenization and digital assets move into mainstream workflows, platforms and regulators face familiar challenges in a new context: product classification, joint approvals, 24/7 operations, and risk management.
Kraken’s perspective: Principles that scale
Clarity enables innovation
The biggest unknown in tokenized markets is not the technology itself, but the rules of the road. Without clear guidance, products stall or move offshore.
With clarity, innovation accelerates. As Arjun emphasized during the discussion: “If we have clarity, we can actually innovate. It’s hard to innovate if there’s no clarity. My biggest fear is we continue to see rapid acceleration, rapid innovation outside the U.S.”
Tokenization broadens access and efficiency
Tokenized assets can unlock liquidity in private credit and real estate, reduce settlement friction, enable fractional ownership, and expand participation. The aim is to open access to the same financial products and services that are too often reserved for the few.
Safeguards must scale
Kraken’s perspective is that trust is built by meeting risks with safeguards. That means transparent valuation of underlying assets, segregated custody and bankruptcy remoteness, and secondary-market rules that support real liquidity.
These are the same principles behind Kraken’s proof-of-reserves leadership and institutional-grade custody through Kraken Financial.
Innovation exemptions are essential
Some panelists pushed back on safe harbors. Arjun disagreed. “It’s really easy to say let’s not have innovation exemptions, but regulatory barriers have been monopolistic and it’s been hard to innovate.”
Controlled exemptions with guardrails allow for experimentation while protecting retail investors, allowing responsible actors to test and scale innovation. Without such exemptions, innovation will continue to flourish abroad rather than in the U.S.
The U.S. risks falling behind
When one panelist claimed the U.S. remains the most innovative financial market, Arjun pointed to DeFi. Pressed again with “we’ve never really lost,” he responded bluntly: “We’re losing right now.”
Without clear rules, innovation will continue to flourish abroad rather than at home.
Key themes from the discussion
Joint jurisdiction and product approvals
Current legislation in Congress represents a once-in-a-generation chance to bring clarity to digital assets, just as Dodd-Frank established a framework for derivatives. Our recommendation is straightforward: The SEC should oversee token financing, while the CFTC should regulate centralized intermediaries and token listing. Clear lines build confidence and avoid unnecessary complexity.
Product approval and innovation exemptions
A product-by-product approach is unworkable. Broad, predictable standards with scoped innovation exemptions are the way forward. This enables responsible firms to experiment safely while providing regulators with the evidence they need to act.
24/7 trading
Kraken already operates secure 24/7 markets globally. With pre-funded accounts, segregated custody, real-time margining and continuous trade surveillance, we have proven it can be done. Financial markets should modernize to reflect today’s always-on economy, expanding access and efficiency without sacrificing stability.
Perpetuals and derivatives
‘Perpetual futures are already established globally. Kraken offers them under FCA regulation with robust safeguards, demonstrating that innovation can coexist with strong oversight. Kraken looks forward to working with the CFTC to replicate this model in the U.S., with disclosures and guardrails adapted for retail.
Portfolio margining and interoperability
Agencies should recognize offsets across product classes and focus interoperability on portability of protections and reporting, rather than forcing identical market designs.
Closing reflections
Arjun closed by noting how much has changed: “Excited to be here – I wouldn’t have said that two years ago.” He pointed to the growing alignment between Congress, regulators and the Administration on market structure as the most promising development.
“Our belief is that market structure can help us better serve our customers,” he said. “We’re able to do more with less. To provide more services and more capital back to our customers.”
For us, the goal is simple: Advocate for a rulebook that expands clients’ access, raises standards for intermediaries and empowers innovation across the U.S.
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