Tag: finance

AI Agents, AI Tools, Banking, Blockchains, Decentralized, Digital Currency, International Finance, Oracles, Productivity, tokenization, Yogi Nelson

Franklin Templeton’s Benji: Bringing U.S. Government Money Market Funds On-Chain

Yogi Nelson

by Yogi Nelson

Welcome to the BlockchainAIForum

The evolution of money is perpetual. Asset managers, such as Franklin, must constantly evolve our face extinction. Franklin was early to adopt a nascent technology in the 1990’s–the internet. Thirty years later, Franklin remains at the forefront–this time with blockchain. Back in the 1990s, Franklin had an “internet-department” that settled transaction! Eventually, of course, the entire organization adopted the internet. Once again, Franklin and the financial world is experiencing a steady convergence between traditional finance (TradFi) and decentralized finance (DeFi). One of the clearest examples of this integration is Franklin Templeton’s Franklin OnChain U.S. Government Money Fund, commonly referred to as Benji. This pioneering initiative represents one of the first regulated U.S. mutual funds to record shares on a public blockchain. While blockchain has often been associated with volatile cryptocurrencies, Benji shows how the technology can be used to modernize stable, regulated financial products—and potentially reshape how capital markets operate.

What Is Benji?

Benji is Franklin Templeton’s blockchain-based version of its U.S. Government Money Market Fund. Launched in 2021, the fund is registered with the SEC under the Investment Company Act of 1940, just like any other regulated mutual fund. However, what makes Benji unique is where its shareholder records live. Instead of relying exclusively on traditional databases, the fund records ownership on the Stellar blockchain, with secondary support later expanded to Polygon.

At its core, the fund invests in short-term U.S. government securities—Treasury bills, government agency debt, and repurchase agreements backed by these instruments. This means investors are not exposed to crypto volatility. Rather, they are accessing a conservative, low-risk investment vehicle—but one enhanced with blockchain technology.

How It Works

Investors access the fund through the Benji Investments app, a mobile platform that simplifies account opening, management, and transactions. Each share of the fund is represented by a tokenized security on-chain. Behind the scenes, Franklin Templeton continues to act as the fund manager, custodian, and transfer agent—ensuring compliance with existing U.S. regulatory frameworks.

From the investor’s perspective, the workflow is straightforward:

  1. Onboarding – Investors complete KYC/AML checks just as they would with any regulated investment account.
  2. Purchase – When buying into the fund, they receive blockchain-based tokens representing their shares.
  3. Ownership Records – These shares are recorded and verifiable on the Stellar blockchain.
  4. Liquidity – Investors can redeem their holdings for cash through the app, just as they would with a traditional money market fund.

This hybrid model combines the legal protections of a regulated fund with the transparency and efficiency of blockchain.

Why It Was Created

The motivation behind Benji can be understood on two levels.

1. Modernizing the back office
The traditional asset management industry relies on layers of intermediaries—custodians, transfer agents, clearinghouses, and settlement systems. These processes are expensive and prone to inefficiencies. By recording fund shares on a blockchain, Franklin Templeton seeks to reduce operational friction, automate reconciliation, and lower costs.

2. Bridging traditional and digital finance
As digital assets gain adoption, institutional and retail investors alike want safer ways to access blockchain-powered financial products. A government money market fund offers familiarity and trust, while its on-chain representation allows participation in emerging blockchain ecosystems. This could pave the way for integrating traditional assets into DeFi protocols in a compliant manner.

The Problems Benji Addresses

Benji is designed to solve several persistent challenges in the investment industry:

  • Inefficiency in recordkeeping: Traditional fund operations rely on complex reconciliation processes across multiple intermediaries. On-chain records create a single, immutable source of truth.
  • Limited transparency: Blockchain enables near real-time visibility into share ownership, increasing trust and reducing the potential for errors or disputes.
  • Barriers to access: By packaging the fund into a user-friendly mobile app, Franklin Templeton lowers the threshold for retail investors to participate. Over time, tokenized shares could be integrated into digital wallets and interoperable with other blockchain-based services.
  • Liquidity and speed: Traditional settlement cycles can take days. Blockchain-based records allow for faster, more seamless transactions.

Broader Implications

The launch of Benji is not just a technological experiment; it is a signal of how legacy institutions are adapting to the digital age. Several key implications emerge:

  • Institutional adoption of blockchain: Benji demonstrates that blockchain is not just for cryptocurrencies, but also for regulated, mainstream financial products.
  • Tokenization of real-world assets (RWA): Money market funds are just the beginning. If successful, this model could extend to bonds, equities, real estate, and other asset classes.
  • Pathway to DeFi integration: While Benji operates in a regulated framework, the tokenized nature of its shares opens the door for eventual interoperability with decentralized finance applications—potentially unlocking new liquidity and use cases.
  • Regulatory precedent: Franklin Templeton’s collaboration with the SEC provides a roadmap for other asset managers interested in bringing funds on-chain while staying compliant.

Conclusion

Franklin Templeton’s Benji is a landmark in the evolution of financial markets. By placing shares of a U.S. government money market fund on a blockchain, it bridges the worlds of traditional investing and decentralized technology. For investors, it offers a conservative, regulated product with the added benefits of efficiency and transparency. For the industry, it represents a proof of concept for how tokenization can address long-standing inefficiencies and unlock new opportunities. As blockchain technology matures, Benji may be remembered not just as an isolated experiment, but as the first step toward a new financial architecture—one where traditional assets and digital infrastructure coexist seamlessly.

Until next time,

Yogi Nelson

Sources:

Franklin Templeton Website.

Securities and Exchange Commission

RWA.xyz.

Stellar Lumens Website

bitcoin, Blockchains, cryptography, Decentralized, Digital Currency, International Finance, tokenization, Uncategorized, Yogi Nelson

4 Ways to Invest in Bitcoin: A Comprehensive Guide

Yogi Nelson

by Yogi Nelson

Welcome to the BlockchainAIForum

I first learn of Bitcoin in 2012; at the time I was working as a federal government bank examiner. With hubris I ignored the Bitcoin story–to say it was a bad choice is the financial understatement of the millenia! However, even if I had wanted to buy Bitcoin in 2012, it was not easy to do so. Now as Bitcoins matures from a fringe digital asset into a mainstream financial instrument, investors have multiple avenues to gain exposure. Four of the most prominent methods are: buying a Bitcoin exchange-traded fund (ETF), purchasing Bitcoin on a centralized exchange, engaging in peer-to-peer (P2P) transactions, and buying Bitcoin directly on the spot market. While each path provides a stake in Bitcoin’s upside, they differ significantly in transaction mechanics, custody, risk, and security. Let’s explore each of those options, one-by-one, starting with ETFs.

Bitcoin ETFs: Indirect Exposure Through Traditional Finance

How It Works
A Bitcoin ETF is a publicly traded investment vehicle that mirrors the price of Bitcoin. Investors buy shares through a brokerage account, just as they would with an equity ETF. The ETF provider either holds actual Bitcoin (in a spot ETF) or uses futures contracts (in a futures-based ETF) to track performance.

Custody
Custody is handled by the ETF issuer and its appointed custodians, typically regulated financial institutions. Investors never directly own Bitcoin or private keys; instead, they hold ETF shares.

Risk Profile
The main risks here are counterparty and regulatory risks. The ETF depends on custodians’ ability to securely hold the underlying asset, and on regulators maintaining approval for such products. Investors are also exposed to tracking errors—where the ETF’s price diverges slightly from Bitcoin’s spot price.

Safety Considerations
From an investor’s perspective, ETFs are among the safest ways to gain Bitcoin exposure. Brokerage accounts are insured and integrated with traditional finance systems. However, they lack the decentralization ethos of Bitcoin; investors sacrifice sovereignty for convenience and regulatory oversight.

Centralized Exchanges: Accessibility with Custodial Trade-Offs

How It Works
Centralized exchanges (CEXs) such as Coinbase, Binance, and Kraken allow users to buy Bitcoin with fiat currency. The process is straightforward: deposit fiat, place a buy order, and receive Bitcoin in the exchange’s internal wallet.

Custody
In most cases, custody remains with the exchange until users withdraw Bitcoin to a personal wallet. The adage “not your keys, not your coins” reflects the risk—users trust exchanges to safeguard their assets.

Risk Profile
CEXs concentrate custodial risk. They are prime targets for hacks, and history has examples like Mt. Gox where users lost funds. There’s also regulatory and operational risk; governments may restrict access, freeze withdrawals, or impose compliance burdens.

Safety Considerations
Well-established exchanges use cold storage, insurance policies, and compliance protocols to mitigate risks. Still, best practice is to treat CEXs as access points, not long-term storage solutions. The safest move for users is to withdraw purchased Bitcoin into self-custody wallets.

Peer-to-Peer Transactions: Trust and Sovereignty

How It Works
Peer-to-peer (P2P) trading occurs when individuals directly buy or sell Bitcoin from one another. This may happen via dedicated platforms like Paxful or LocalBitcoins, or informally between acquaintances. Payment methods range from cash and bank transfers to mobile money apps.

Custody
Custody depends on the structure of the transaction. Many P2P platforms use escrow smart contracts that hold Bitcoin until both sides confirm payment. Once released, the buyer assumes custody directly, typically into a self-hosted wallet.

Risk Profile
P2P transactions carry counterparty risk. Fraud, scams, and disputes are common, particularly with fiat payment reversals. Legal risk also arises in jurisdictions where P2P Bitcoin sales are restricted or monitored.

Safety Considerations
P2P embodies Bitcoin’s decentralized ethos—users transact without intermediaries and retain control over custody once completed. However, safety depends heavily on reputation systems, escrow protections, and user diligence. In regions with weak financial infrastructure, P2P often becomes the most practical option despite higher personal risk.

Spot Market Purchases: Direct but Institutional

How It Works
The Bitcoin spot market refers to trading platforms—often institutional-grade—where Bitcoin is bought and sold at current market prices for immediate settlement. Examples include major global exchanges or over-the-counter (OTC) desks that facilitate high-volume trades.

Custody
Custody arrangements vary. Some spot desks deliver Bitcoin directly to buyers’ wallets, while others require custodial accounts. Institutional clients may rely on licensed custodians that specialize in digital asset security.

Risk Profile
Spot market transactions reduce exposure to tracking error, since trades reflect real-time Bitcoin prices. Risks revolve around liquidity, counterparty default, and settlement failures. For retail traders, access to true spot markets is often indirect, via exchanges.

Safety Considerations
Because spot desks often serve professional investors, security protocols are robust. Cold storage, multi-signature wallets, and compliance audits are standard. Retail users can replicate this model through reputable exchanges and immediate self-custody, but they must remain cautious about liquidity slippage when trading large amounts.

Key Comparisons

1. Transaction Mechanics
– ETF: Buy shares via brokerage; indirect Bitcoin exposure.
– CEX: Deposit fiat, trade on exchange; simple for retail.
– P2P: Direct trade with individuals; payment varies.
– Spot Market: Institutional-level immediate settlement at live prices.

2. Custody
– ETF: Managed by custodians; investor never holds keys.
– CEX: Custody with exchange unless withdrawn.
– P2P: Custody transfers to user upon escrow release.
– Spot Market: Custody varies; institutions often self-custody via licensed providers.

3. Risk Factors
– ETF: Tracking error, counterparty, and regulatory risk.
– CEX: Hacks, insolvency, regulatory freezes.
– P2P: Counterparty fraud, payment disputes, legal uncertainty.
– Spot Market: Liquidity, settlement, counterparty default.

4. Safety Profile
– ETF: Safest for traditional investors, least aligned with Bitcoin’s ethos.
– CEX: Convenient but should not be used for long-term custody.
– P2P: Empowers sovereignty but demands vigilance.
– Spot Market: Professional-grade security; best for institutions or experienced traders.

Conclusion

Choosing how to gain Bitcoin exposure depends on preferences, risk profile, and other factors particular to the individual. Investors seeking regulated, traditional vehicles may prefer ETFs, even at the cost of direct ownership. Retail participants often start on centralized exchanges for accessibility but should practice safe withdrawal to personal wallets. P2P markets empower financial sovereignty, especially in regions underserved by banks, though with heightened counterparty risk. Spot market purchases represent the most direct institutional approach, ensuring fair pricing and immediate settlement but requiring sophistication. Ultimately, the spectrum of options reflects Bitcoin’s growing integration into both decentralized and traditional financial systems. Whether one values security, sovereignty, or simplicity, understanding custody and risk is central to making an informed choice.

Until next time,

Yogi Nelson

Austrian economics, Banking, Blockchains, content creation, Decentralized, Digital Currency, Science, Yogi Nelson

Why Crypto-Blockchain Projects Embrace Limited Token Supply: Sound Money in the Digital Age

Yogi Nelson

by Yogi Nelson

Welcome to the BlockchainAIForum

When I entered crypto in 2020, the idea that a project would voluntarily limit its token supply took a moment to process. If the US dollar has an infinite supply, which it does, and all fiat currencies are unlimited also, why would a crypto project have a limited supply? With a background in traditional finance and banking, this was a new concept for me to process. I’m glad I did–it led to a deeper understanding. After reading this article hopefully you also will better appreciate the limited money supply thesis based on Austrian economics.

One of the defining characteristics of many blockchain projects is their decision to implement a fixed or limited token supply. Bitcoin famously caps its maximum issuance at 21 million coins, while Cardano limits its ADA supply to 45 billion units. This scarcity-centric design is not accidental. Rather, it draws heavily from economic theories—particularly those of the Austrian school of economics—and seeks to replicate the stability and credibility once associated with sound money like gold and silver.

The Austrian School of Economics and Sound Money

The Austrian school emphasizes free markets, minimal government intervention, and the intrinsic value of money. Thinkers such as Carl Menger, Ludwig von Mises, and Friedrich Hayek argued that money should arise organically from the market and maintain value through scarcity, durability, and divisibility.

Austrian economists rejected the idea of government-controlled fiat money, which can be inflated at will by central banks. Given the debasement of the U.S. dollar would you disagree? They argued that sound money—money backed by hard assets like gold or silver—provides a check on political manipulation. When currency supply is limited, governments cannot debase it through unchecked printing, preserving purchasing power and protecting savers.

It is this principle of scarcity-backed trust that Bitcoin and other blockchain projects attempt to re-create in digital form. By fixing supply in advance, blockchains aim to engineer monetary systems that are resistant to manipulation, inflation, and short-term political incentives.

Why Limited Supply Matters in Blockchain Design

  • Scarcity Creates Value: Just as gold’s rarity underpins its value, cryptocurrencies with limited supply derive scarcity-driven appeal. Bitcoin’s 21 million cap ensures that no more coins can ever be created beyond the programmed maximum.
  • Predictable Monetary Policy: Traditional currencies rely on central banks to manage inflation and interest rates. Blockchains like Bitcoin instead employ algorithmic monetary policy, where issuance schedules and maximum supply are transparently coded.
  • Resistance to Inflation: By fixing supply, blockchain projects create systems where inflation cannot erode purchasing power. Bitcoin’s deflationary design means that as adoption increases, demand pressure could increase value rather than diminish it.
  • Incentivizing Early Adoption: Limited supply also creates incentives for early participation. While this can raise issues of inequality, it has proven a powerful bootstrapping mechanism for network adoption.

Bitcoin: The Original Case Study

When Satoshi Nakamoto launched Bitcoin in 2009, he embedded Austrian economics deeply into its DNA. The 21 million cap was designed to mimic the scarcity of gold, but with more precision and predictability. Bitcoin’s issuance schedule—the halving cycle every 210,000 blocks—mirrors the decreasing rate at which new gold is mined. This ensures that Bitcoin’s inflation rate asymptotically approaches zero, reinforcing its narrative as digital gold.

Other Projects Following the Scarcity Model

  • Cardano (ADA): Fixed supply at 45 billion tokens.
  • Litecoin (LTC): Hard cap of 84 million coins, designed as silver to Bitcoin’s gold.
  • Ethereum (ETH) & Polkadot (DOT): Contrasting models with no fixed supply, opting for dynamic or inflationary mechanisms.

Critiques of the Limited Supply Approach

  • Deflationary Spiral Risk: Hoarding instead of spending.
  • Inequality Concerns: Early adopters often accumulate disproportionate wealth.
  • Lack of Elasticity: Cannot expand supply in crises like fiat systems can.

Why Scarcity Narratives Resonate Today

Despite criticisms, limited-supply tokens resonate in an era of monetary expansion and fiat uncertainty. Events such as the 2008 financial crisis and COVID-19 pandemic expanded money supplies dramatically. By framing tokens as digital sound money, blockchain projects connect with the intuitive idea that value should be tied to scarcity, not unlimited printing.

Conclusion: Digital Scarcity as a New Monetary Standard?

The decision by Bitcoin, Cardano, and other blockchain projects to cap their token supply is more than a technical feature—it is a philosophical statement. Rooted in Austrian economics, it seeks to restore trust in money through scarcity, predictability, and resistance to manipulation. Whether this model ultimately proves superior to fiat flexibility remains a subject of fierce debate. But the idea of scarcity as value has struck a chord, fueling the growth of blockchain and shaping its monetary experiments. In an uncertain global financial landscape, the allure of limited supply tokens may continue to define the narrative of crypto as the sound money of the 21st century.

Until next time,

Yogi Nelson

Banking, Blockchains, content creation, cryptography, Decentralized, Digital Currency, International Finance, sec, tokenization

Should You Be “Bullish” on the Bullish Initial Public Offering (IPO)?

Yogi Nelson

by Yogi Nelson

Welcome to the BlockchainAIForum.

Apparently Summer 2025 is crypto IPO season. Circle’s IPO was a booming success. (Circle issues U.S. backed stable coins.). Will Bullish be bullish or will it fall to the bears. Does it deserve the name Bullish? Or is it too premature to ask or know? As this is not financial or investment advice blog, I suggest you conduct your own independent research. In the mean time, enjoy this article.

Bullish, founded in 2020, is an institutionally focused global digital asset platform that provides trading infrastructure, data services, indices, and media through its core brands: Bullish Exchange and CoinDesk. The company seeks to accelerate adoption of stablecoins, digital assets, and blockchain technology by delivering institutional-grade products backed by compliance, liquidity, and technological innovation. With major acquisitions of CoinDesk (2023) and CCData (2024), Bullish has expanded beyond trading to become a diversified service provider at the intersection of exchanges, financial data, and digital asset media.


Business Overview
Bullish operates two primary divisions:

1. Trading & Liquidity Infrastructure (Bullish Exchange)
– A regulated global exchange for spot, margin, and derivatives trading. 
– Licensed in Germany, Hong Kong, and Gibraltar, with U.S. and other jurisdictional approvals pending. 
– Features a global order book, institutional-grade liquidity, risk management tools, and subscription-based liquidity/stablecoin services. 
– Reported $1.25 trillion+ cumulative trading volume as of March 31, 2025. In 2024, it achieved ~35% and 44% market share in spot trading for Bitcoin and Ethereum respectively among its peer set. 
– Average daily trading volume in Q1 2025 reached $2.55B in spot and $248M in perpetual futures. 

2. Information Services (CoinDesk)
– Indices: Offers proprietary multi-asset benchmarks (e.g., CoinDesk 20 Index) and reference rates like the long-established Bitcoin Price Index (XBX). Collectively, indices support $31.9B AUM and $14.3B in trading volume (March 2025). 
– Data: Provides real-time and historical analytics to over 171,000 professionals, strengthened by CCData’s enhanced market coverage and analytics. 
– Media & Events: Operates CoinDesk.com (55M+ unique visitors in 2024), podcasts, newsletters, and social media channels. The flagship Consensus conference drew 26,000+ attendees in 2025 and expanded globally with events in Hong Kong and Toronto. 

Together, these lines create a synergistic “flywheel” model: data powers indices, indices generate products listed on the exchange, and media amplifies visibility and customer acquisition. Cross-selling and integration remain central to growth.


Management and Governance
The company is led by CEO Thomas W. Farley, former President of the NYSE, who has extensive experience scaling exchanges and integrating acquisitions at Intercontinental Exchange (ICE). The management team combines expertise across traditional finance, digital assets, and technology.

Bullish is incorporated in the Cayman Islands (2021) and qualifies as a foreign private issuer under U.S. securities law, giving it exemptions from certain SEC reporting, disclosure, and NYSE governance requirements. For example, it is not bound by U.S. proxy rules or insider reporting standards. However, this could mean less transparency compared to U.S.-based peers.


Financial Overview
– 2024 Net Income: $80 million. 
– Q1 2025 Net Loss: $349 million, reflecting market volatility and strategic investments. 
– Adjusted EBITDA: $52M (FY 2024); $13M (Q1 2025). 
– Liquid Assets (March 2025): $1.96B, consisting of $1.73B Bitcoin, $144M stablecoins, $28M cash, $22M ETH, and $33M other tokens. Borrowings totaled $551M. 

Bullish emphasizes a conservative treasury strategy to ensure resilience across digital asset price cycles while maintaining flexibility for acquisitions and growth initiatives.

Preliminary Q2 2025 estimates were included, showing continued volatility. Adjusted transaction revenue, adjusted EBITDA, and net income figures were disclosed as non-IFRS guidance but subject to revisions upon final audit.


Market Context and Growth Opportunity
Bullish sees digital assets at an early adoption stage, akin to the internet in the 1990s. Bullish argues it is well positioned to capture value across this multi-trillion-dollar addressable market through its integrated services. By mid-2025, the global digital asset market reached $3.4 trillion in capitalization with 17,000+ cryptocurrencies in circulation. Positive industry trends include: 

– Rising Market Activity: Bitcoin and Ethereum trading volumes surged in late 2024, and wallet adoption doubled between 2022 and 2024. 
– Institutional Adoption: Firms such as BlackRock, Fidelity, and Goldman Sachs have entered the sector, with Bitcoin and Ethereum exchange-traded products attracting $44B+ inflows by mid-2025. 
– Regulatory Clarity: Frameworks such as the EU’s MiCA, U.S. approval of spot BTC and ETH ETFs, and the U.S. GENIUS Act for stablecoins provide legitimacy and growth opportunities. 
– Technological Advancements: Rapid adoption of stablecoins (>$250B market cap), tokenization, DeFi, and blockchain-based collateral are expanding applications, with projections of $1.6T–$3.7T stablecoin supply by 2030. 


Competitive Advantages
Bullish highlights several differentiators in its IPO filing: 
1. Comprehensive Product Suite: Unified cross-collateralized margin accounts, deep liquidity, and seamless trading infrastructure. 
2. Diversified Business Lines: Exchange, data, indices, and media provide multiple revenue streams and reduce volatility. 
3. Trust and Compliance: Operates regulated platforms and maintains transparent governance. 
4. Technology Leadership: High-performance central limit order book and automated market-making; continuous upgrades to security, scalability, and user experience. 
5. Global Reach: Strong institutional presence with 36% YoY client growth in 2024; CoinDesk’s global audience bolsters customer acquisition. 
6. Capital Strength: $1.9B+ in digital assets available to support liquidity and expansion. 
7. Experienced Leadership: Proven track record in scaling and integrating exchanges. 


Growth Strategy
Bullish plans to drive expansion through five main levers: 
– Licensing Footprint Expansion: Actively pursuing U.S., UK, Canadian, and EU approvals, with multiple state money transmitter licenses already secured. 
– Product Innovation: Continuously launching new trading products (e.g., perpetual futures, indices) and cross-selling into existing customers. 
– Vertical Integration & Collaboration: Cross-leveraging exchange, data, and media businesses to maximize synergies.  
– Customer Base Expansion: Moving beyond institutional clients to target active traders (“prosumers”), using CoinDesk’s reach for cost-effective customer acquisition. 
– Strategic M&A: Future acquisitions will focus on scaling exchange operations, new product development, and geographic expansion, building on the successful integration of CoinDesk and CCData. 


Risks and Challenges
Bullish identifies multiple risks that investors should weigh: 
– Regulatory Uncertainty: Digital assets remain under evolving global regulatory scrutiny, which may limit innovation or expansion. 
– Intense Competition: Competes with both regulated and unregulated platforms, including DeFi, DEXs, and DAOs that may innovate faster. 
– Volatility in Results: Dependent on adoption rates and price swings of digital assets, which drive trading activity and revenues. 
– Operational & Security Risks: Potential loss or mismanagement of private keys, cyberattacks, or system disruptions could harm reputation and operations. 
– Conflicts of Interest: Ownership of CoinDesk as both a news source and business line presents reputational risks. 
– Dependence on Third Parties: Reliance on external banking, insurance, and service providers introduces vulnerabilities. 
– Jurisdictional Complexity: Operating in multiple countries creates compliance risks. 
– Foreign Private Issuer Risks: Exemption from U.S. governance standards may mean less disclosure and oversight than domestic peers. 
– Geopolitical Factors: PRC oversight of Hong Kong, U.S. HFCAA rules, and other geopolitical risks could negatively affect operations or share value. 


Conclusion
Bullish positions itself as a next-generation, diversified digital asset leader at the intersection of trading, data, and media. The company has grown rapidly, securing a top-10 position in Bitcoin and Ethereum spot trading, while also building out indices, analytics, and globally recognized events like Consensus. With strong leadership, $1.9B in liquid assets, and a synergistic operating model, Bullish believes it is uniquely positioned to capture growth in the expanding digital assets sector.

However, the IPO also comes with significant risks: regulatory uncertainty, industry volatility, fierce competition, and governance exemptions tied to its foreign private issuer status. Investors are cautioned that while Bullish’s strategy shows promise, its results may remain volatile as the digital asset industry continues to evolve.

Until Next Time,

Yogi Nelson

Banking, Digital Currency, finance, International Finance, sec, tokenization, Yogi Nelson

The SEC and CFTC Joint Statement: Impact on Crypto Trading

Yogi Nelson

by Yogi Nelson

Welcome to the BlockchainAIForum

The trend is clear–the crypto market exchanges and traditional market exchanges are engaged and eventually heading towards marriage! Why this bold declaration–the news coming from Washington.

In a landmark move on September 2, 2025, staff from the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) issued a joint statement declaring that exchanges registered with either agency are not prohibited from facilitating trading in certain spot crypto asset products. This declaration, emerging from the coordination between the SEC’s Division of Trading and Markets and the CFTC’s Divisions of Market Oversight and Clearing & Risk, marks a clear regulatory pivot in the landscape of U.S. digital asset markets.

Riding the Wave of “Project Crypto” and “Crypto Sprint”

This initiative forms part of broader frameworks known as Project Crypto (by the SEC) and Crypto Sprint (by the CFTC), both born from recommendations of the President’s Working Group on Digital Asset Markets aimed at fostering U.S. leadership in digital finance innovation. The working group’s report consistently called for regulatory clarity to ensure blockchain experimentation thrives on American soil.

Under these programs, the agencies are collaborating to provide a coordinated path forward: emboldening registered venues to offer leveraged, margined, or financed spot retail commodity transactions — including crypto assets — under existing legal authorities.

What’s Allowed, and How It’s Framed

Importantly, the agencies stress that current law already allows certain registered exchanges—namely SEC-registered national securities exchanges (NSEs) and CFTC-registered designated contract markets (DCMs) or foreign boards of trade (FBOTs)—to facilitate trading in select spot crypto commodity products, even with leverage and margin, without needing new legislation.

This is not, however, a new rule or legal exemption. The statement represents staff views only—it carries no binding force and does not change existing statutes. Exchanges must still proceed through the usual regulatory processes, such as filing rule amendments or requesting relief. Nevertheless, its unlikely “staff” would be permitted to take this action without “approval” from the agencies directors. I make this claim as someone who held senior staff positions in the federal government.

What’s Next, and What Market Participants Should Consider

The joint staff statement serves not just as a signal, but as an invitation to market participants. Agencies have pledged to:

  • Promptly review filings and proposals, encouraging engagement from exchanges seeking to list spot crypto products.
  • Address operational and structural questions, including around custody, clearing, margin, and settlement.
  • Support market surveillance and data transparency, encouraging shared price feeds and real-time dissemination of trade data.
  • Balance innovation with investor protection, remaining open to technological advances while ensuring rigorous oversight.

Legal and compliance professionals advise that any firm planning to launch such offerings should prepare thoroughly by addressing these operational points—effectively a checklist for submission—and engage early with regulators.

Views from the Trenches: Optimism vs. Skepticism

The regulatory move has been widely hailed in the industry as a game-changer—a regulatory green light for mainstream U.S. exchanges to consider crypto listings, potentially including Bitcoin and Ether.

But not everyone sees it that way. Some legal analysts have labeled the statement a “nothingburger”, criticizing its non-binding nature and lack of clarity around how “commodity” versus “security” status will be adjudicated—an unresolved core issue in crypto regulation. I do not agree with those legal analysts–but I’m not an attorney nor is this article legal or financial advice.

Harmonizing Frameworks—Next Up: A Joint Roundtable

This statement represents only the first step. On September 5, 2025, the agencies released a strategic follow-up: a joint statement on regulatory harmonization, announcing a public roundtable on September 29, 2025, to align their frameworks further—spanning product definitions, reporting standards, capital requirements, and coordinated innovation exemptions.

SEC Chair Paul Atkins and CFTC Acting Chair Caroline Pham described the session as a pivotal moment to transform U.S. regulatory coordination into a competitive advantage, enhancing clarity and opening the door to financial innovation. Their remarks signal a shared commitment among regulators to make the U.S. marketplace more efficient, innovative, and investor-friendly.

Implications and Forward Outlook

For the crypto industry, this coordinated stance paves a legal path that could bring regulated exchanges into the fold. Institutional venues like Nasdaq, NYSE, CME Group, and Cboe could consider introducing crypto product offerings—once thought off-limits—if they navigate the filing and operational requirements successfully. That is not a “nothing” burger!

Yet, without binding rules or clarified legal definitions, the shape of this new pathway remains uncertain. Regulatory arbitrage and legal ambiguity could persist unless the agencies deliver clear, binding regulations or frameworks.

Conclusion: Cautious Optimism in a Regulatory Renaissance

The joint statement by SEC and CFTC staff marks a meaningful departure from past reluctance—an encouraging signal that the U.S. is repositioning itself as a hub for blockchain-driven innovation. Market participants now have formal permission to explore spot crypto product offerings—if they comply with existing regulatory expectations.

The upcoming September 29th roundtable offers a critical opportunity to transform this gesture into substantive regulatory reality. For firms, token projects, and exchanges, the message is clear: engage early, act boldly, and help shape the evolving regulatory blueprint for the next era of digital asset markets in the U.S.

Until next time,

Yogi Nelson