Monday, the Kraken Arjun Sethi CO -PDG joined the leaders of Ice, CME, Nasdaq, CBOE, Kalshi, DRW and Polymarket at the Dry Round – CFTC table on platforms and the structure of the market.
Moderate by the former CFTC commissioner, Jill Sommers and the Director of the SEC tradings and markets, Jamie Selway, the panel brought together some of the most influential votes in the global markets. It was the first joint round table made with the dry and the CFTC in 14 years.
The conversation was focused on a critical question: how can future, actions, options and sites of digital assets converge coherent standards for execution, compensation, disclosure and access to investors without slowing down the pace of innovation?
Our message was clear: tokenization is the modernization of infrastructure, and harmonized rules are the bridge of fragmented systems today in the open and effective markets of tomorrow.
Why this round table is important
President Atkins has opened with a call for unified surveillance: “The fragmented and complicated system ends now.” The CFTC commissioner Caroline Pham echoes the feeling, noting that it was the first Dry joint round table – CFTC from Dodd -Frank, marking “a new day” for cooperation.
This backdrop is important. For decades, the securities and derivative markets have evolved under distinct laws and mandates. While tokenization and digital assets go to traditional workflows, platforms and regulators face familiar challenges in a new context: classification of products, joint approvals, 24/7 operations and risk management.
Kraken’s perspective: the principles that evolve
Clarity allows innovation
The biggest stranger in token markets is not the technology itself, but the rules of the road. Without a clear guide, the products get off or move offshore.
With clarity, innovation accelerates. As Arjun pointed out during the discussion: “If we have clarity, we can really innovate. It is difficult to innovate if there is no clarity. My biggest fear is that we continue to see rapid acceleration, quick innovation outside the United States ”
Tokenization widens access and efficiency
Tokenized assets can unlock liquidity in private and real estate credit, reduce regulation friction, allow fractional property and develop participation. The objective is to open access to the same financial products and services which are too often reserved for a few.
The guarantees must evolve
Kraken’s point of view is that confidence is built by responding to risks with guarantees. This means a transparent assessment of underlying assets, separate police custody and bankruptcy distance and secondary market rules that support real liquidity.
These are the same principles behind the proof of Kraken reserve and the custody of institutional quality by Kraken Financial.
Innovation exemptions are essential
Some panelists have pushed safe ports. Arjun did not agree. “It is really easy to say that we do not have exemptions from innovation, but the regulatory obstacles have been monopolistic and it was difficult to innovate.”
The exemptions controlled with railings allow experimentation while protecting retail investors, allowing responsible players to test and set up innovation. Without such exemptions, innovation will continue to flourish abroad rather than in the United States
The United States may late
When a panelist said that the United States remains the most innovative financial market, Arjun stressed Defi. Pressed again with “we have never really lost,” he replied frankly: “We are losing right now.”
Without clear rules, innovation will continue to flourish abroad rather than at home.
Key themes of discussion
Joint competence and product approvals
Current legislation at Congress represents a unique chance to generate digital assets, just as Doddd-Frank has established a framework for derivatives. Our recommendation is simple: the dry should supervise the financing of the tokens, while the CFTC should regulate the centralized intermediaries and the list of tokens. Clear lines strengthen confidence and avoid unnecessary complexity.
Product approval and innovation exemptions
One product approach by product is impracticable. Large and predictable standards with innovation exemptions in glasses are the way to follow. This allows responsible companies to experiment safely while providing regulators with the evidence they need to act.
24/7 trading
Kraken already operates 24/7 secure markets worldwide. With pre -funded accounts, a separate guard, real -time margin and continuous commercial surveillance, we have proven that this can be done. Financial markets should modernize to reflect the still active economy, expanding access and efficiency without sacrificing stability.
Perpetual and derivatives
“Perpetual future are already established worldwide. Kraken offers them under FCA regulation with robust guarantees, demonstrating that innovation can coexist with strong surveillance. Kraken is looking forward to working with the CFTC to reproduce this model in the United States, with disclosure and railings adapted to retail.
Portfolio margin and interoperability
Agency should recognize compensation between product classes and focus interoperability on the portability of protections and reports, rather than forcing identical market conceptions.
Closing reflections
Arjun closed by noting how much changed: “Excited to be here – I wouldn’t have said it two years ago.” He underlined the growing alignment between congress, regulators and administration on market structure as the most promising development.
“Our conviction is that the market structure can help us better serve our customers,” he said. “We are able to do more with less. To provide more services and more capital to our customers. ”
For us, the objective is simple: defend a book of rules that widens customer access, increases standards for intermediaries and strengthens innovation through the United States
