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Unchained

Why the SEC Paused on Its Innovation Exemption for Tokenization: Bits + Bips

Unchained

Laura Shin

Tech News, Business News, News

4.61.3K Ratings

🗓️ 28 May 2026

⏱️ 61 minutes

🧾️ Download transcript

Summary

Citadel and SIFMA lobbied to slow tokenized equity rules. Arjun Sethi calls it 'corporate plumbing.' Chris Perkins calls it a bond future moment. --- Thank you to our sponsor! ⁠⁠Coinbase One⁠⁠: Get 20% off the first year of your Coinbase One annual plan at ⁠⁠coinbase.com/unchained⁠⁠. Heads up! If you haven’t yet, be sure to subscribe to Bits + Bips, since the show will migrate there in a few weeks. Follow us on ⁠⁠⁠⁠⁠⁠⁠Apple Podcasts⁠⁠⁠⁠⁠⁠⁠, ⁠⁠⁠⁠⁠⁠⁠YouTube⁠⁠⁠⁠⁠⁠⁠, ⁠⁠⁠⁠⁠⁠⁠Spotify⁠⁠⁠⁠⁠⁠⁠, ⁠⁠⁠⁠⁠⁠⁠X⁠⁠⁠⁠⁠⁠⁠, ⁠⁠⁠⁠⁠⁠⁠Unchained⁠⁠⁠⁠⁠⁠⁠ and wherever you get your podcasts. ---- Kraken has spent $2.75 billion on acquisitions in the past year, and co-CEO Arjun Sethi says the point is not a bigger exchange. The goal is a 24/7 global operating system for capital markets: spot, derivatives, payments, tokenized equities, and custody under one regulatory stack. Sethi makes the case for each move, from REAP's tripling revenue in emerging markets to Bitnomial's CFTC trifecta, and says what will actually drive Kraken's next three years is not trading volume. The conversation then turns to the SEC's paused innovation exemption for tokenized equities, why Citadel and SIFMA showed up to lobby against it, and whether direct listings on crypto rails could eventually replace Wall Street's IPO machine. The episode closes on a question nobody saw coming: what Pope Leo's first encyclical on AI and finance has to do with the Bitcoin white paper. Hosts: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Austin Campbell (@austincampbell) — Founder, Zero Knowledge Consulting; Adjunct Professor, NYU Stern ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Ram Ahluwalia⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠, Co-Host, CEO of Lumida ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Chris Perkins⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠, Co-Host, CEO of 250 Digital Asset Management Guest: Arjun Sethi - Co-CEO of Kraken / Payward and Chairman of Tribe Capital Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

And the fact is, is that, you know, some of these companies have spent, you know,

0:04.5

hundreds of millions, billions of dollars to really own that market structure.

0:09.2

And so when you're an incumbent and rules come around that can disrupt you, you probably don't like it.

0:17.2

You know, I grew up with a lot of these guys.

0:19.7

And I remember sitting down with one of them

0:21.4

at lunch. And I'm like, dude, like, why are you so against, you know, Clary Act, blah, whatever.

0:28.0

And his response was, bro, do whatever you want with your silly little tokens, but don't mess with

0:34.2

my equities or we're going to have a problem. Welcome to bitsits and Bips, where we explore how crypto and macro collide one basis point at a time.

0:42.7

We're here to discuss the latest stories in the worlds of crypto and macro,

0:46.2

and today I think we have an excellent guest for that.

0:48.9

But before we begin, a quick word from one of our sponsors.

0:52.6

If you've been loving Bits and Bips, don't forget that the show is transitioning to its own feeds on X, YouTube, and your favorite podcast player. If you're not already subscribed to Bits and Bips on its own channels, go there now and hit that subscribe button so you can keep up with our twice weekly live streams and MacroMeets Crypto breakdowns. Bits and Bits will only be on the Unchained feed for a few more weeks.

1:11.4

So subscribe today to be ready for launch.

1:13.6

You can get all the links at Unchained Crypto.com slash bits and bits.

1:19.8

So as always, I'm your host, Austin Campbell, high scholar of zero knowledge group.

1:24.6

Here with my co-host today, Chris Perkins, the golden hand of 250 digital asset management.

1:31.4

To the best of our knowledge, Rahm is currently somewhere at a black site being interrogated

1:36.2

for his negative comments about chat GPT, but he should be back next week.

1:41.2

So today's guest, who I'm very excited about, is Arjun Sati of Payward, aka Cracken.

1:48.1

And for our first segment based on that, Arjun, we wanted to talk a little bit with you about

1:53.3

cracking, your M&A, and the overall push for the platform. So let me frame some of what we've been

1:59.9

seeing and then we can talk about it.

...

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