Podcast Summary

Podcast: The Wolf Of All Streets
Host: Scott Melker
Episode: USA Opens Crypto: Will Floodgates Spark the Next Bull Run? | CryptoTownHall
Date: September 3, 2025

Overview

In this episode, Scott Melker and a panel including Dave, Carlo, Amateo, Ryan, and others dissect the unprecedented joint SEC and CFTC statement effectively opening the US to spot crypto trading by registered entities. The panel explores the implications for Wall Street, exchanges, altcoin markets, meme and brand tokens, tokenized equities, and the broader movement towards globalized crypto markets. The discussion is technical and nuanced, with legal, market structure, and regulatory clarity front and center—and plenty of spirited debate about what this shift really means for builders, traders, and institutions.

Key Discussion Points and Insights

1. The Joint SEC & CFTC Statement: A True Gamechanger

• Announcement Explained ([05:04]):
  • Scott: Outlines the essence: the agencies jointly allow certain crypto assets to be traded on registered entities, paving the way for both Wall Street banks and US exchanges to legally offer spot crypto services.
  • Dave: Spotlights the underestimated importance of Wall Street's drive for profit:

    “People completely underestimate ... how the ability to make money drives Wall Street... What it does mean is that offering ... custodial or trading services to actual investors is now open. Wall Street can make money without having to spend enormous amounts of compliance.” ([05:41])

  • For Bitcoin, Ethereum, and others with ETF or futures approvals, the “floodgates” are functionally open.

2. Regulatory Clarity and the Future of Listings

• Carlo:

  “Anything we can do ... to not tie the hands of these exchanges as far as spot trading and all the legal wrangling and ambiguity ... under the Gensler era is gone.” ([07:39])

  • Emphasizes the move as stopping the siloing of digital vs. traditional assets.
• Amateo: Calls the news “monumental” for major cryptos being listed on standard US exchanges, but cautions that path for altcoins remains unclear:

  “For major cryptos to get listed on standard US Exchanges is just massive because of the liquidity opportunity there… if you're building an altcoin ... the path to get on Coinbase can be ... unpredictable.” ([09:14])

3. Which Assets Qualify?

• Ongoing uncertainty remains a theme:
  • Carlo:

    “It's still to be seen which assets will qualify… It doesn't seem like it's an open gate for Fart Coin to get listed universally.” ([11:50])

  • Structural hurdles and the likelihood of continued “geo-fencing” (exchanges blocking US users from certain global tokens) are discussed ([12:20]).

4. The Globalization and Tokenization of Financial Markets

• Dave: Predicts passage of a market structure bill in the fall, triggering a rulemaking clock in the agencies ([13:54]).
  • Regulatory clarity will bring new disclosure rules and likely diminish the dominance of pure meme tokens.
  • The panel agrees that true economic value tokens will be strengthened, while “Mustang memes are going to die.” ([15:30])

5. Meme Coins, Brand Tokens, and Social Finance

• Memes are morphing into “brand tokens.”
  • Carlo:

    “Meme coins are becoming brand coins ... these tokens are now an extension of brand identity ... a way for people to own a piece of the brand's identity.” ([20:15])

  • Unnamed Fortune 500 Exec: Reveals household names planning tokenized loyalty programs linked to real-world assets and experiences ([21:48]).
• Ryan & Dave: Lament the loss of US crypto freedoms, the clampdown after FTX and the struggle to balance openness with fraud prevention ([23:07]–[25:22]).

6. Crypto Builder & Investor Environment

• Widespread frustration over legal/regulatory uncertainty:
  • Ryan: Describes how engineers stopped “taking credit” due to exposure risk ([29:21]).
  • Dave:

    "We're talking about attracting capital ... Some projects will be like Nvidia. Some will be hyped nonsense. And that's okay. That's how markets work." ([29:49–31:25])

• Projects—especially altcoins and innovative chains—struggle to survive hype cycles and lack of liquidity in the US ([35:02–41:43]).

7. Tokenization of Equities and TradFi Integration

• Scott: Brings up Galaxy Digital tokenizing its SEC-registered GLXY shares on Solana as a milestone:

  "To my knowledge ... this is the first time these aren't wrapped stocks. This is like SEC Registered actual shares on a blockchain." ([43:45])

• Dave & Carlo: Dive into the challenges of integrating blockchain-based assets with existing settlement systems (DTCC, mainframe tech):
  • 24/7 trading, multi-currency support, issuer transparency (“who owns your stock”), and lower clearing costs are all benefits, but full on-chain trading likely remains years away ([44:11]–[49:51]).
  • The requirement for privacy (“no trader will open their book to an open-source blockchain”) and challenges of instant vs. batched settlement are outlined in detail ([55:08]–[58:45]).

8. Short-Term Market Sentiment and Closing Thoughts

• Recent launches (e.g., American Bitcoin miner) and “Trump-adjacent” stocks are attracting wild speculation ([32:12–34:02]).
• Despite regulatory progress, volumes and liquidity remain low, and most participants still await clearer signals before diving in ([34:24]).
• Dave’s final pragmatic take:

  “There's a sea change … This notice from yesterday matters and when you look back on it in three, six, 12 months, you're going to say, why didn't I realize this?” ([27:02])

• Final words: “Buy more Bitcoin.” ([60:35])

Notable Quotes & Memorable Moments

• Dave on Wall Street's drive: “If you did [understand], then you would understand that the entire banking complex ... have been shut out of crypto. What … this does is says they're no longer shut out.” ([05:41])
• Carlo on regulatory progress: “Anything we can do ... I regard as tremendous progress. So … ambiguity and bending of logic … under the Gensler era is gone.” ([07:39])
• Amateo on altcoin builders: “With the sheer velocity of assets … it's really confined people into the decentralized index world ... [but] the ability to trade on these foreign exchanges as an American is just massive.” ([09:14])
• Ryan on the builder experience: “We just stopped taking credit for [building]... people stopped being doxed because it was too much liability.” ([29:21])
• Carlo paraphrasing The Godfather: “I'm basically Michael Corleone in Godfather Part 3. I just want to get out of defending fraud and crime and get into building. But just when I thought I was out, they pulled me back in.” ([28:10])
• Gary questioning tokenization: “No trader on the planet is going to open his book to an open source blockchain.” ([55:55])
• Dave on why tokenization matters (succinctly): “It brings three things... full multicurrency without having to pay ridiculous tolls... on-demand settlement ... and issuer knowledge of who owns your stock ... and 24/7 trading.” ([56:55])

Timestamps for Major Segments

• [05:04] – SEC & CFTC joint statement explained
• [07:39] – Significance for US market structure and exchanges
• [09:14] – Builders and American market access
• [11:50] – Which crypto assets qualify?
• [13:07] – Globalization and legislative clarity
• [15:30–17:34] – Meme tokens, brand tokens, and clarification of what will thrive or die
• [20:15–23:07] – Brand tokens, loyalty, and convergence with RWAs (real-world assets)
• [23:07–25:22] – US crypto freedom lost & the FTX aftermath
• [28:10] – Lawyering in crypto: "Godfather" reference & regulatory struggles
• [29:21] – Builders retreat due to legal fears
• [34:24] – Low volumes, thin liquidity, and caution in the market
• [43:45]–[46:53] – Tokenizing equities: Galaxy Digital's move and TradFi friction
• [55:55]–[58:45] – Debating the practical value and hurdles of tokenization

Tone and Flow

• Engaged, candid, occasionally irreverent, and technical.
• Participants bounce between pragmatic takes, skepticism, and optimism about the long-term potential of US crypto markets and blockchain-powered finance.
• Frequent reference to lawyers, regulators, and the reality of building both compliance and community in crypto.

Takeaways

• The US regulatory door to spot crypto trading is opening—gradually and for select assets, but with huge long-term implications.
• Wall Street is poised to enter with vigor once legal pathways are clear; ETFs were just a start.
• Meme tokens are evolving into brand/community tokens as regulatory clarity dawns.
• The true revolution (tokenizing all assets, 24/7 markets, global access) is beginning, but will encounter persistent friction from existing financial plumbing and the need for privacy and economic motivation.
• "Floodgates" may not unleash a speculative mania overnight, but a foundational market change is underway.

Suggested Next Steps for Listeners

• Watch for concrete rulemaking from the CFTC and SEC, and for which tokens are approved for listing.
• Expect legacy financial institutions to offer new—and potentially more user-friendly—crypto trading services.
• Recognize that regulatory clarity creates winners and losers: utility tokens and brand tokens may thrive, pure memes could fade.
• Be wary of hype cycles but look for undervalued, tech-driven projects with real use cases.

“Buy more Bitcoin.” – Ryan ([60:35])