Markets Daily Crypto Roundup: Is Regulatory Risk 'Off the Table Now' for Crypto Firms?

Release Date: June 10, 2025
Host: Jen Rado, CoinDesk
Guest: Chris Perkins, President of Coin Fund and Member of the CFTC's Global Market Advisory Committee

1. Introduction and Participant Overview

In this episode of Markets Daily Crypto Roundup, CoinDesk host Jen Rado engages in a comprehensive discussion with Chris Perkins, the President of Coin Fund and a key member of the Commodity Futures Trading Commission (CFTC)'s Global Market Advisory Committee. The conversation delves into the evolving regulatory landscape for cryptocurrency firms, focusing on the interplay between the CFTC and the Securities and Exchange Commission (SEC), the implications of new stablecoin legislation, and the future of decentralized finance (DeFi) in the United States.

2. CFTC’s Role and Absence in SEC Roundtables

Jen Rado (00:18): "Nick, I know you're a part of the CFTC's Global Market Advisory Committee. ... why do you think that the CFTC doesn't have a voice at these round tables?"

Chris Perkins (00:48): "It's a great question. ... I think these agencies will continue to evolve and find ways to collaborate effectively."

Chris commends recent comments made by Nick (likely Nick O'Leary) and discusses the significance of the SEC's new leadership. He contrasts the current proactive stance with the previous administration under Gensler, highlighting a shift towards dedicated roundtables focused on applying regulatory frameworks to emerging asset classes like DeFi. Perkins emphasizes the importance of CFTC involvement and anticipates enhanced collaboration between the SEC and CFTC under new leadership.

3. Stablecoin Legislation and Its Impact on DeFi

Nick (02:42): "Renato brought up this stablecoin bill that is making some progress. ... How does the stablecoin bill fit into this broader conversation we're having about DeFi?"

Chris Perkins (02:58): "The stablecoin bill makes DeFi really, really exciting because ... having good rules and a good foundation around DeFi is very important."

Perkins explains that the proposed stablecoin legislation is pivotal for the DeFi ecosystem. By regulating stablecoins effectively, the legislation can unlock significant potential within DeFi, allowing for substantial capital inflows and innovative financial products. He projects a surge in stablecoin adoption, estimating around $500 billion by year-end, which would catalyze growth and yield opportunities within decentralized platforms.

4. Regulatory Clarity and Definitions

Jen Rado (04:19): "Chris, if you could ask the SEC to be focused on one thing ... what would you be telling the SEC to be focused on?"

Chris Perkins (04:35): "My primary focus would be definitions across the board. ... we regulate activities, not technology."

Perkins stresses the necessity for clear definitions within regulatory frameworks, distinguishing between the underlying technology of DeFi and the activities that need regulation. By establishing precise definitions, regulators can better categorize and oversee different aspects of the crypto space without stifling innovation. He advocates for a bifurcated approach where technology remains unregulated, while specific financial activities are subject to oversight.

5. Market Structure and Tokenized Equities

Nick (07:57): "From your lens ... what language are you listening for that indicates more capital flowing into US-based DeFi firms?"

Chris Perkins (08:17): "Clarity would be huge. ... How can we use DeFi to distribute listed equities?"

Perkins highlights the potential for DeFi to revolutionize public equity markets through tokenization. He envisions a future where equities can be directly listed on blockchain platforms, enhancing accessibility and liquidity. By leveraging DeFi, the traditional IPO market could be revitalized, tapping into the vast global demand and democratizing access to investment opportunities. Perkins draws parallels to the emergence of ETFs in the 90s, suggesting that thoughtful regulation could similarly propel tokenized equities into a multi-trillion-dollar asset class.

6. Cooperation Between SEC and CFTC

Jen Rado (11:34): "This new legislation ... what can we do ... to encourage and incentivize cooperation between these two agencies?"

Chris Perkins (11:34): "It starts at the chairman level and at the personal level. ... I do remain encouraged. ... I feel bullish."

Responding to inquiries about fostering collaboration between the SEC and CFTC, Perkins attributes the potential for effective cooperation to the personal relationships and shared visions of the new agency leaders. Drawing from past experiences during the Dodd-Frank era, he remains optimistic that the current leadership can overcome previous challenges and establish a coordinated regulatory approach that benefits the economy and entrepreneurial endeavors.

7. Future of DeFi and Innovation in the U.S.

Nick (07:57) and Chris Perkins (08:17): The discussion shifts to the infusion of capital into U.S.-based DeFi firms and the prerequisites for fostering innovation. Perkins emphasizes that regulatory clarity is paramount for attracting investment and enabling startups to scale effectively within a principled regulatory environment.

Nick (20:32): "Who are you excited to hear from? ... Who is really thinking about Defi in the future of Defi?"

Chris Perkins (20:32): "Check out somebody like Rebecca Redding. ... They're really sharp and a lot of them are contrarians."

Perkins expresses enthusiasm for the insights that leading DeFi experts will bring to the upcoming roundtable, highlighting the presence of seasoned and innovative voices in the field. He underscores the importance of diverse and knowledgeable participants in shaping the future trajectory of DeFi.

8. State vs. Federal Regulation

Jen Rado (18:39): "What do you think is the right role for states, if any, in regulating this space going forward?"

Chris Perkins (19:11): "Personally, I'm in favor of thoughtful federal regulation ... unlocking scale for our startups."

Perkins advocates for federal over state regulation, arguing that a unified regulatory framework would ease the compliance burden on startups and facilitate nationwide scalability. He acknowledges the potential roles of state regulators but emphasizes that federal legislation should take precedence to create a more streamlined and efficient regulatory environment.

9. Eliminating Regulatory and Reputational Risks

Nick (16:49): "Is there anything that they're still anxious about? ..."

Chris Perkins (17:11): "Regulatory risk is kind of off the table now. ... the only solution ... is to go back ... the government to start authorizing privateers again."

Perkins conveys a positive outlook, suggesting that regulatory uncertainty is diminishing, thereby reducing the reputational risks previously associated with crypto ventures. He underscores the importance of addressing operational risks, particularly cybersecurity threats, as a remaining barrier to mainstream adoption. Perkins advocates for proactive government measures to combat cyber threats, enhancing the security landscape for crypto startups.

10. Conclusion and Final Thoughts

As the discussion wraps up, Perkins reiterates his bullish stance on the future of DeFi and the crypto market in the U.S., contingent upon thoughtful and clear regulatory frameworks. He anticipates that the convergence of effective SEC and CFTC collaboration, coupled with innovative technological advancements, will position the United States as a leading hub for decentralized financial innovation.

Notable Quotes

• Chris Perkins (00:48): "Having dedicated roundtables to think about how they can apply their rulemaking to this emerging asset class is essential for the future of DeFi."

• Chris Perkins (02:58): "The stablecoin bill makes DeFi really, really exciting because it lays the groundwork for substantial capital inflows and innovative financial products."

• Chris Perkins (04:35): "You don't regulate tech, you regulate activities. Clarity in definitions is crucial for effective regulation."

• Chris Perkins (08:17): "How can we use DeFi to distribute listed equities? This is the real alpha for me."

• Chris Perkins (11:34): "With the new chairmen, we have a real possibility to get things right and set a positive precedent for years to come."

• Chris Perkins (17:11): "Regulatory risk is kind of off the table now, which eliminates a huge part of the reputational risk for startups and developers."

Insights and Conclusions

Chris Perkins provides a forward-looking perspective on the regulatory evolution in the crypto space, emphasizing the critical need for clear definitions and collaborative efforts between regulatory bodies. The anticipated stablecoin legislation is highlighted as a catalyst for DeFi growth, potentially unlocking vast capital and fostering innovative financial mechanisms.

Perkins remains optimistic about the U.S. regulatory environment, suggesting that reduced regulatory uncertainty will spur investment and innovation. However, he cautions that operational risks, particularly cybersecurity threats, remain significant challenges that need to be addressed to achieve mainstream adoption.

The discussion underscores the importance of federal regulation in creating a cohesive and scalable framework for crypto startups, reducing the complexities imposed by disparate state regulations. Overall, the episode paints a bullish outlook for the future of DeFi and the broader cryptocurrency market in the United States, contingent upon thoughtful and principled regulatory advancements.