How Tokenization Could Change Stock Trading Forever (ft. Matthew Hougan)
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Why does the failure of the Clarity Act matter for crypto regulation?
Welcome back to the Rundown Interview Edition. Today I am talking to Matt Hogan, the chief investment officer at Bitwise, one of the largest crypto focused asset managers in the world. And Matt is joining us at the perfect time because this was a big week for crypto and we got into it all. Matt explained why he thinks the Clarity Act failing in the Senate won't be a huge setback for crypto. He also explained Explain why the new exemptions by the SEC for stock tokenization is a big deal and other reasons to be optimistic about crypto moving forward. This was an awesome conversation. I think you guys are gonna really enjoy it. So let's get into it. All right, guys, today we are talking to Matt Hogan, the CIO of Bitwise, one of the largest crypto focused asset managers in the world.
Matt, welcome to the rundown.
It's amazing to be here. Thanks for having me.
Well, I'm so happy you could join us this week. There's a it's a big week for crypto, I gotta say. There's a lot happening. Uh I wanna start with the Clarity Act. That was like the main headline this week. The Clarity Act uh did not it failed to advance in the Senate this week. I just wanna get your take as someone who follows this stuff all the time. How big of a setback is this for the crypto industry? Because for the last year or so, I've just been hearing nonstop, you know, buzz and hype around the Clarity Act and if it's gonna get done. Doesn't get done. Now, where does that lead the crypto industry?
Yeah, it's a great question. It depends on your time frame. That's why it's a little bit frustrating. So the reason we wanted clarity is because legislation is hard to change. So if you think about the history of crypto over the last like seven or eight years, we had a very anti-crypto SEC led by Gary Gensler. And then we have today a very pro-crypto SEC led by Paul Atkins. And in the anti-crypto SEC, it was hard to get things done. It was hard to launch an ETF. It was hard to have big institutions move into crypto. It was challenging for the price. In the pro-crypto SEC that we're in now, it's easier to get things done. We have a large variety of ETFs. We have regulated futures. You see BlackRock and NASDAQ and NISE building on crypto-based rails.
What the Clarity Act was about was putting in place legislation that would last multiple administrations that couldn't be overturned by a change in the SEC. So that's what makes this moment so interesting. Because the reality is with the Clarity Act failing. The people setting the rules for crypto are the SEC and the CFTC who are very pro-crypto. So for the next two and a half years, we're gonna have very pro-crypto rules. But the worry is what happens in two and a half years. So it's sort of timeline dependent.
How is the current pro‑crypto SEC changing the outlook for tokenized assets?
It's it's we're in a great place now. If we had clarity, we would have been a great place forever. Now we're in a great place, but with some uncertainty in the future, and that's what makes it interesting to be an investor in. Crypto right now.
Right. So like it it it uh you were trying to lock in some certainty and some like, you know, without having the rules changing every two to three years on based on who the you know who's in the White House. Now there's that uncertainty again depending on, you know, who's in charge of the SEC, C F D C in two and a half years.
You got it. That's exactly right. It's all about certainty versus uncertainty. Make no mistake, it would have been better if it had passed. I think if it had passed, crypto would have been the consensus hot trade in the fourth quarter of this year. It would have been a runaway bull market. Now I still think the situation is is pretty good for crypto. But as you said, there's more of this downstream uncertainty that we just gonna have to wrestle with as an industry.
Well, I saw that, you know, you said uh before the vote that uh you were less worried about its failure than you were earlier this year. Like you still thought that it wasn't gonna pass, but you weren't as concerned uh about it not passing anymore. Like what changed between you know, everyone was wanting it to pass and how it was so important for crypto and then now not being as worried about it?
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Chapters
8 chapters
1
Why does the failure of the Clarity Act matter for crypto regulation?
0:00–2:33
2
How is the current pro‑crypto SEC changing the outlook for tokenized assets?
2:33–5:25
3
What is a tokenized stock and how does it differ from traditional shares?
5:25–8:13
4
How will 24/7, instant‑settlement trading impact investors and markets?
8:13–10:56
5
What risks and arbitrage opportunities could arise from tokenized stocks?
10:56–13:48
6
Can tokenization extend beyond stocks to real estate, bonds, and even collectibles?
13:48–16:19
7
Why is Bitcoin rallying despite bad news and what does that signal?
16:19–19:28
8
What could drive the next major crypto bull market and make Bitcoin act like digital gold?
19:28–21:40
Speakers
1 identifiedMore from The Rundown
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