of "bloomberg markets"ment we are moments from an exclusive conversation. but first let's check the markets. [no audio]

>> we are seeing a rally in the s&p 500 well as philadelphia smionductor index some that felt pain a day ago after another record high. the dollar back ote rise .2% higher and 10-year yield still above 4%. we will look at movers before we start. we are looking at united airlines, morgan stanley jumping more than 7%. at one points it was rising f the most since about four years ago and mossnce morgan stanley's c.e.o. took over. the banking industry has floated the s&p 500 higher the last couple days after bank after

bank report better results particularly trading as volatility has compounded. we are seeing also other stocks move higher with united airs take off to the tunef more than 11% over two da just a stunning move in an industry where supply has been a big question mark and now some of the companies are rebounding the highest level since 2020 and very importantly we are watchng the trump trade. they have been on the rise. chief among them median technology group. now we want to turn to that big interview. i want to welcome our bloomberg television and radio audience to the special episode of bloomberg markets with an exclusive spwaeu stanley tkrufrpblgen miller. in 2021 you wrote an opinion

paper in the "wall street journal" that said the fed is playing with fire. a couple of weeks ago you wrote to me and said you hope the fed is not making the same mistake in 2021 trapped by forward guidance. why are you so concerned? >> in 2021 i think the fed did a great job when we were facing a block hole in covid in 2020. they took some very aggressive actions. one of those actions was for guidance where they try to settle markets guided ahead to basically a zero interest rate policy. i think it was for three years. we were all fooled by covid. i was too. when it first happened away wondered are when cinching --

sinking into a black hole but it was pretty obviousia the vaccine we were not and unemployment 14% started to drop, the economy came back. we wrote the article in the spring of 2021 because at this point when felt we were like booming and it feels everywhere and the economy and companies we talked to and unemployment rate everywhere. and the fed wasn't adjusting. so they were buying i think 120 billion a month in securities, could have been 95 billion at that time and rates were still zero. had they had a champion slate they would never have been buying bonds to that degree with what feels going on in the economy but they were trapped by early guidance. from the point away wrote the article that it was obvious when

even wrote about it, it was 13 months from when inflation went to 2% to raising rates and bought $2 trillion in bonds during that period. so i guess the reason i analogize it to today -- and it is different. i had a lot of confidence then they were wrong on inflation, the money supply was growing 40%, the economy was booming. this is more nuanced. however, just look at the asymmetry. back then you go 13 months with inflation through the target, up to 8 1/2% and you are keeping rates at zero and buying bonds like crazy and then you, when you move, you move 25 basis points and your rationale is we need to see the whites of inflation's eyes and it is 3%,

4%, 5%. today we are still quite a bit above targets many the economy they have come up with this i guess theory that monetary policy is restrictive because of real inflation rates. but i don't really go by theory. i'm a markets animal. we tpopbld over the years markets are better predictors than professors. equities are at a record high, gold at records high, g.d.p. above trend. credit tight. bank earnings and forecasts look good. we don't see any restriction whatsoever. crypto going crazy. all the of a sudden the crowd that said they wanted to see the whites of inflation's eyes and be diplomat dependent are now

cutting 50 basis points, not a quarter, and we are not even to targets yet and this is on the theory that monetary policy is restrictive. so with i would say is this. i don't have the conviction i had in 2021 that we wrote that article that the fed is going to be wrong but on a risk/reward basis i don't think it makes any sense at all it lay out the cards they have laid out and commit themselves through forward guidance once again. with i was trying to say and what i was saying reminds me of 2021 is i just hope if the data don't go with them and they certainly haven't since they started this narrative, they adjust this time and they are not trapped by the forward guidance the way they were in 2021. >> does this mean you got 50 basis points was an absolute mistake and do you think there's

a risk of an inflationary spike of the 1970's. >> do you have the chart we talked about earlier? >> there is one investors have been looking at. >> even if when don't have the chart in the 1970's's inflation came down from a remarkably similar level to 2021. i think 2021 paoeblged at nine and i think it was eight in the 1970's. they came down to three. so the fed starting easing and inflation went right back up i think it peaked at 12% when volcker smashed it. i'm not predicting that but when you are easing into a melt-down in financing markets and we have the fiscal party we have going forward it is certainly a risk and i just think it is a mistake not to be taking thatting did taking that risk into account.

i i think the markets have praoeutsed in a 97% cut the next meeting. that is all through fed guidance my friend jim grant said they are not really data dependent they are forward guidance dependent and that is what they are showing again. he might be right and i hope he is, but it is a big risk because if they are wrong and inflation takes off because monetary policy is not restrictsive amount we've fiscal expansion going on and they have to tight,again it could be a nightmare for markets and maybe the independence of the fed. you can't make multiple mistakes that that would have been. but i'm not predicting and i'm just saying why did they go 50 and why do they need the forward guidance? >> i wanted your view on this. are you concerned about the independence in the scenario of a donald trump win? in an interview a day ago, he

said that is the job is to show up once a month and let's flip a coin. on the other hand your long time colleague scott has been advising trump and floated the idea of a shadow fed chair. how compromised is fed independence at it juncture. >> i think the shadow fed is a horrible idea and irresponsible. but were he to be elected i think the institution will holds. i think a bigger threat to the fed would be major mistakes by the fed. i think the fed is obsessed with soft landings and fine tuning. that is not the real job. the real job is to avoid the problems with the great financial crisis because they were two easy and created a housing bubble and after covid sticking with it a year and a

half or two years buying bonds with the money supply exploding to me. they have to stop the fine tuning and start looking at the bigger picture and committing now and if inflation goes up again that can lead to a hard landing, not a soft landing. >> speaking of the future another big uncertainty is the november election. i'm wondering what your playbook is around this election cycle and what you think the most likely scenario is and how you set up for it. >> well, it is an evolving situation. if you had asked me this 12 days ago i would have said i don't have a clue and it is a total tossup. i still don't have conviction on who will win the election but i like market indicators for the economy and financial

restrictiveness. i also like them for elections. i remember how right the market was on ronald reagan in 1980 despite the pundits and the last 12 days the market and inside of the market is very convinced trump is going to win. you can see it in the bank stocks and crypto and even in d.j.t., his social media company. but throughout the whole i would say the industries that are deregulated it would benefit from trump or outperform the others. so if you put a gun to my head and thank god there isn't one i would say that i would have to guess trump is the favorite to win the election now. but who knows with the polls even mean. no one even responds to them any more. but that's what we are looking at. i think the delta between let's say four outcomesment blue

sweep, red sweep, trump with a blue branch of congress, harris with a red branch of congress. first of all, i think blue sweep is extremely unlikely. even if harris wins the presidency looking at state by state polls it looks like the republicans are going to win the senate. were you to get a blue sweep, i think just the math of taxes, business confidence, lack of animal spirits, no change in the regulation front in investors minds, you would have a rough time for equities i would think for three to six months. i think this with probably translate in the economy because equity owner is 25% of financial

assets. it was 15% not that long ago. that is a blue sweep. but the good news or bad news depending how you view life, it is highly unlikely so that playbook will probably be irrelevant. >> what about a red sweep? >> a red sweep which i think is more likely than a president trump presidency with a blue congress because personally i think anybody that votes for trump is probably not going to change their ballot for a democratic congress. a red sweep, i think you get animal spirits in the business community, you get dregulation, and there might be some sort of uplift relative to where they were in terms of the business community so i think the economy could be potentially stronger to three to six months.

my fear would be, because of those reasons and i think bonn yields already don't reflects a proper economic outlook you would probably get a bad response in the fixed income markets which could snuff out the equity rally. but anywhere aware worried about bonds we are playing it through the pwoptd market. if you want to go after the cause rather than the sentence there still looks like this are stocks and things to do. i also think under a red sweep the fed for the reasons i gave and because of past relationships would be more hawkish than under the harris administration. so, i think that with all be in our playbook and responses to it. understood a harris administration, with a republican congress, probably not a lot of change from the

landscape when currently have in terms of trying to figure out what is happening. >> if you are just standing by i'm with stanley dunkin miller. youere talking through each scenario here but what about your person views. in a recent conference you messaged you would not vote for either harris or trump. which concerns you more? >> which concerns me more? i like brett stevens line in "new york times." i i haven't decided who i'm going to vote against. i can't see myself voting for either one so it doesn't matter who concerns me more and i search would never support either one of them. i just think they are actually unified on sop things like industrial policy both think apparently the government should

have a major role in allocating capital, which i find frankly bizarre. when i think back 10 or 15 years, i'm a reader of tom friedman and quite a good writer and he was constantly pointing out how the chinese model was potentially superior to the u.s. model talking about how nice their airports were and roads and how they could target certain industries. well, my long suspicions have been confirmed and china has been a disaster with that model. but somehow both parties, republican and democrats, have adapted industrial policy throwing free markets reagan capitalism to the side. so the policys in terms of that i find equally bad. i finds her policies were worse in terms of ante-bigness but i

grew up in america with a certain model of a president, george washington, thomas jefferson, ronald reagan was one in my lifetime where there was a certain dignity and behavior in the office and i don't judge anyone who wants to votes for trump but for me it is just a red line so i will probably write in someone when i go to the poll. >> when you they have the policies donald trump has put forward he said it bloomberg that tariff is the most beautiful word in the dictionary. he is neglect gated the idea that many economists believe that this could have punitive impacts on the american consumer. how do you see it? >> well, i don't like tariffs. i just said i'm a free market capitalist. the only thing i will say about trump is he is a bit of a blow hard so i don't know with he is

negotiating with our foreign adversaries and with our foreign partners, i don't think it will be in another world but i'm not in favor of tariffs. >> it is -- >> by the way, the biden administration kept all of his tariffs so it is not like i'm a fan of their tariff policy either. >> what about taxation? you have been critical for many years about the u.s. debt load the fiscal situation. and there are analyses that say both candidates with increase the federal debts loads. the committee for a responsible bucket said trump more than harris. can congress gets away with extending the tax cuts from the trump era or is there another way to close the gap? >> in my world the less taxes the better.

but we live in a worlds that i hope still includes compromise. and if there is some sort of agreement for spending cuts i could definitely tolerate tax increases to balance them. i will say one thing. i don't really like the media narrative which compares fiscal irresponsibility with tax cuts and fiscal irresponsibility with spending. again, you are right, i'm a fiscal hack and more worried about this and the effects four or five years out than if we have a soft handing. this is big stuff we are talking about. but tax cuts are accompanied by the addition of the capital stock. spending is a shrinking of the capital stuck replaced by government spending. so of the two sinses tax cuts are least but personally if i

was in government you can't just do tax cuts if you don't get the spending cuts. and it feels trump to me that took entitlements off the table in 2016 and that is where the money is. so, i give him an f on fiscal responsibility also. >> i want to switch gears because we only have a little bit of time. i want to talk about the market and wagers that you have put on we spoke about inindividualsia and you said it is something you held for years. ever since then you held it for a while but more recently you have been selling it off. who were left do you have of it and why have you been selling? can you seever getting back into it again? >> i made so many mistakes in my investment career. one is i sold all of my inindividualsia probably somewhere between 850 and 950, i think it is 1300.

>> you own none. >> i owe none the last 400 points. it was a big mistake. in terms of a.i. -- and when i saw you at that conference 18 months ago -- i fully expected it own it for years. but i think it was 300 and change. as i also said at a meeting interview i'm not warren buffet. so i thought i was -- but with changed is it tripled in the year and i evaluate the valuation is rich. we are big long-term believers in a.i. and there are many ways we're playing it particularly the infrastructure that has been built out to support the power needed. and, yes, i think nvidia is a woman company and were the price to come down we would get involved again but right now i'm licking my winds from a bad sell. >> one other question, were saying you express a lot of your views through the pwoptd market.

the tell-year hit 4.1% again recently. do you think it goes much higher and with you go very short at this rate? >> i don't know what she short means. we shorted bonds the day the fed cut 50 because we thought it was a mistake. we still have it position. it is not so much i have a view on where it is going to go shore term. what i do believe if powell ends up being wrong and inflation reschedule rates next year bonds could go up a lot of basis points, hundreds, whereas if he is right you might lose 25 or 30 basis points short. the golden rule i have always had the 10-year should be around nominal g.d.p., 5.5% so the risk/reward is being short bonds. >> stan we have to leave it

there. thank you for joining me. we will check in on shares of morgan stanley as they hit a record high again today. this is bloomberg.

sonali: this is "bloomberg markets. it is time for the stock of the hour. we will look at morgan stanley surging. i was age to speak with their c.e.o. to get his take on the report. >> if you look at our fixed income base it has been really a stable business which has underlying volatility part of what foreign exchange and rates and credit are. but they have been stable. i feel like in both businesses there's an element of the leaders pulling away from the pack because it costs a lot to run those businesses every year.

sonali: just less than a year into the job and record print here and we will have bloomberg crypto coming up. stick with us for that conversation next.

it's our son, he is always up in our business. it's the verizon 5g home internet i got us. oh... he used to be a competitive gamer but with the higher lag, he can't keep up with his squad. so now we're his “squad”. what are kevin's plans for the fall? he's going to college. out of state, yeah. -yeah in the fall. change of plans, i've decided to stay local. oh excellent! oh that's great! why would i ever leave this? -aw! we will do anything to get him gaming again. you and kevin need to fix this internet situation. heard my name! i swear to god, kevin! -we told you to wait in the car. everyone in my old squad has xfinity. less lag, better gaming! i'm gonna need to charge you for three people.

>> we are live from bloomberg world headquarters in new york. ted: welcome to "bloomberg crypto." sonali: bitcoin bulls are setting their sights on record highs as optimism builds around riskier assets. ted: we are now just 19 days away from the u.s. election. count it. this we, vice president kamala harris pledges to register a framework for digital assets. this follows a strong crypto

support from donald trump. sonali: we will be speaking about lobbying money behind the election with ripple president monica long. ted: all that ahead over the next half hour on "bloomberg crypto," but take a look at bitcoin this month. up close to 6% just on the heels of the fed interest rate cut. a rally in tech stocks we have seen since the august drop. basically last -- reached an all-time record of $74,000 in march. we will be speaking to mike reagan in minutes about what catalysts are sending bitcoin higher. sonali: it is pretty fascinating. we look at the bitcoin etf flows zooming. zooming out, it is some strong action in recent weeks. back to billions over the last couple days. at least one billion brought into the ets and that is on the back of a few things.

we know the optimism around potentially former president trump becoming more friendly to the industry if he were to win. we have things to minutes in china prop up the market to some degree. risk behavior across many markets. and certainly bitcoin is a large beneficiary of that, bringing the assets of these funds to more than $60 billion. ted: so let's get -- tim: so get into it. mike regan joins us on set abenberg hq. is this about optimism about a potential trump presidency, a friendlier crypto environment? is it about interest rates going down? is about optimism with crypto right assets? mike: yes, yes, and yes. i think all of the above but i would add one other thing which is on the silly side but this is crypto markets. there is some silliness involved and that is october. if you look back october -- tim: october is scary. it is halloween.

come on, like. mike: historically, it is just this amazing month. the past 10 octobers, average gain of 20% in october. it has only been down two of those 10 octobers. crypto relies on this narrative, the fundamentals are whatever you want to make them to become a but the narrative and the means believe it or not and the sort of hype machine behind crypto can have a really sort of self-fulfilling prophecy. when you look at all of these great octobers that the market has seen, i think there is something to that. the seasonality does exist. average 20% gain in the month. it is hard to ignore that. did not look like we would see an up october earlier in the month but now that you see all the things we are talking about, potential positive tailwinds for the industry. the election. it is now becoming clear kamala harris's campaign came out

earlier in the week with sort of an outline of what they are doing to reach out to black male voters. tucked into that platform was a mention she will support of a rigell framework for crypto -- a regulatory framework for crypto. it is not exactly donald trump saying he will be the president of crypto but it is a big step forward for the democratic side to get on board with a regulatory framework. people are breathing a sigh of relief and saying regardless of the outcome of the election, obviously trump has become the big cheerleader for crypto, but there is a sense that democrats will not be as anti the industry as they were. sonali: there is bitcoin and everything else. you are seeing pretty significant rallies the last several days in crypto assets. how do people think about bitcoin versus ethereum and some stablecoins these days? michael: i think in general, bitcoin tends to lead and the others follow. they follow with more of a beta.

if bitcoin is up 5%, the other coins may be up 10%, 20%. if has not had that breakout year this year that bitcoin has had because of the exchange traded funds. the flows into bitcoin have been strong again this month. sonali: etf's. michael: etf's, yeah. ethereum for a variety of reasons has not seen the robust inflows partly because you cannot get the yield from staking ethereum with etf's like you can in the traditional or crypto native markets. that might be a bit of a headwind to the etf's. as bitcoin goes, so goes the rest of the market. just oftentimes with more drama, more to the upside than the downside. sonali: thank you for keeping your eye on the markets. now let's bring in a guest. where do you find the most

convincing story right now when it comes to the world a bitcoin and other crypto assets frankly? >> i think mike nailed it. october, baby. tim: october. uptober. >> that is right. one of the things that is really important to remember here is the crypto industry is an interesting one because we have a plethora of data. you mention some of it retaining to etf flows. that is a data point that is widely tracked. what we are seeing right now, there is this four year cycle that gets talked about a lot in crypto that is directly driven by the bitcoin halving's where the supply of bitcoin is cut in half. it is affecting the inflation rate, getting cut in half. typically it takes nine months to filter through. we have seen black rock went from owning zero bitcoin at the start of the year to now holding

$25 billion in bitcoin. we have larry talking but the potential of bitcoin to be a massive asset class like gold. i think there has been a fundamental shift coupled with this sort of having the cycle we see with bitcoin leading and other longer tell crypto assets following. we should have this in cripple backed up and it is also an election year where crypto has become a massive platform for the trump campaign. now it is starting to become a small but growing part of the lot for the harris campaign. all of this ticking together is driving a lot of attention to bitcoin and the broader crypto asset class. that attention is being translated into sentiment, and sentiment leads to flows. we have the data to show the flows are starting to come back. sonali: something i am curious about, so much money is flowing into bitcoin, and some of this

is on the promise of better regulatory environments in the future now under either administration potentially. but my question is, wouldn't it be that the other crypto assets would be more meaningfully impacted given there is so much of a cloud over them right now from a regulatory perspective? meltem: i think one of the other factors we cannot really underestimate, and this is a lot of my focus at my firm crucible, is there is a huge never give unfolding around the broader data center economy as i am calling it. one of the things that is so fascinating about bitcoin is bitcoin over the last decade has had a terminus impact on the data center economy. we have $20 billion of market capitalization in 20 publicly listed bitcoin miners. these bitcoin miners are specialized data center operators that have been really good over the last decade at really one thing, and that is securing long-term purchasing agreements for very cheap power.

i think the baseline story is also getting a lot of attention and momentum because it is being partially driven by this data center compute an energy story that has really been dominating markets since the meteoric rise of nvidia earlier this year. i think we are starting to see that bifurcation with bitcoin dominance. it is still over, and this is many years into there being multiple cryptocurrencies. i think this leadership that bitcoin demonstrates is also underpinned by the fundamentals of bitcoin's ties to the physical world and this data center economy that is so prevalent right now. tim: i want to go back to the election and the comments you made about bitcoin becoming a central theme to at least the trump campaign. politicians have been known to pander ahead of elections to try to get people to vote for them. what is the risk here that we know one of these can will be elected if they don't follow through with what they said about the crypto industry? meltem: i have a controversial

take here. tim: ok. meltem: does not really matter too much who is president. regulation has some degree on the margin but i think the overall trend tells a much larger story. at the end of the day, bitcoin is going to stay. the most successful etf launch of. -- launch of all time. it has been an incredible success. people are just doing things. we see this with elon and what happened at tesla and with spacex over the weekend doing incredible things. i think the crypto story is no different. i am not terribly concerned about who gets elected. at the end of the day, bitcoin and crypto is an unstoppable force meeting and immovable object. there will be fireworks. while the trump campaign has embraced bitcoin, jd vance, who

shares the ticket with trump, is a silicon valley person for all intents and purposes. it does not matter too much. at the end of the day, bitcoin and crypto has been incredible resilient. we will keep pushing. sonali: might be another underappreciated overlap between the crypto community and artificial intelligence. to what extent are you seeing convergence between the two? where do you see the best ai plays in crypto? meltem: that is a great question. i think crypto is a great ai play. if compute is the commodity, if power is the court and put, bitcoin miners have done a good job of locking down a lot of that capacity. i think it is still early for the crypto ai story. a couple of interesting areas to watch is in payments. as agents are becoming more active and will play a more formative role in our commodity,

the payment reveals the edges will use, it will make sense they are not using credit cards. they are using stablecoins or some cryptocurrency. the interesting thing is, what are the new digital commodities that will get created? compute is one. bitcoin block space is a digital commodity. it is priced as such. block space on ethereum as well. i think the growth of the digital commodity asset class will look a lot like the growth of the more traditionally physical commodity. it makes me and currently enthusiastic about the role cryptocurrencies and blockchain infrastructure will play in that evolution. tim: always good to check in with you. thank you so much for joining us here on "bloomberg crypto." speaking of payments, coming up, we will speak next with ripple president monica long about a new cross-border deal.and access

to access all the latest news, go to the terminal. this is bloomberg. ♪

tim: this week, but president kamala harris to support a regulatory framework for cryptocurrency is a larger effort to wrap up her outreach to voters. let's discuss with laura joining us from washington, d.c. give us the details as we enter the final stretch of the election less than three weeks away from election day. what specifically did we learn about what vice president harris thinks about crypto? laura: she has been very

intentionally vague on this issue. she put out this whole framework about appealing to black men, which was this economic pitch of saying here are all the things i will do for you, black men who have supporting her campaign in lower numbers than they have for democrats in previous cycles. so this is a weak spot the campaign sees for them. here are the pathways to job opportunities, apprenticeships. here is what we will do in access to health care and for black business owners starting up businesses. interestingly enough, crypto was one f he pillars she inclu saying we want to have this regulatory framework so in companies and customers know and can participate in. you see her competing with trump who is all in on crypto and says he wants the u.s. to be the best place for crypto. she is trying to compete there. there are questions of people

engage and she is signaling she will be different from biden on this issue. sonali: when you think about it, is problematic for her at least in terms of getting crypto voters for her to be so vague? i am wondering if the left is just screaming and hurt your and that is part of the reason there is this reticence to have a more holistic strategy at least during the campaigning trails. laura: this is very much a tightrope issue she has to walk. because there are member's of her party who are vocally calling for a lot more restrictions on crypto but she also realizes for voters who care about crypto that they care a lot about crypto so she needs to throw them a bone. this is sort of a strategy she has taken broadly among her economic policy. she has talk more in themes than specifics, realizing that once you start putting things down on paper, it gives people some thing to attack you on so she is trying to stay high level on a lot of these policies. tim: laura from washington, d.c. check out laura's reporting and from the entire team covering

everything about the 2024 election at bloomberg.com and always on the bloomberg terminal. ripple among the top donors for a fair shake. it is the problem crypto super pac helping to shape digital asset policy in washington. ripple has given at least $40 million to fair shake, which i spent $124 million on election ads. president monica long joins us now. good to have you on the program. $48 million to fair shake is quite a lot of money. what specifically are you hoping to accomplish? monica: thank you so much for having me. for us, not just for ripple, really for the whole industry, having clear policy and regulation that fosters and enables innovation with the strength of technology while also protecting consumers is absolutely critical. and so that is the intention of the fair shake pac, to support candidates across the board and across the aisle, both sides of the aisle who will be proponents

of creating regulatory clarity. sonali: how much uncertainty is there left? because when i think across the landscape of uncertainty, the list is long. from stablecoins to exchanges, what concerns you the most? monica: well, so looking globally, many countries are going to get right and are leading the way. take brazil, singapore, hong kong, u.k., europe. you have created a framework with 27 different states to create a clear framework of how to relate to assets -- relay crypto assets. in the u.s. we see a lot of confusion so we would like to see more out of our policymakers. you have regulators like the ctoc who are leaning into understanding the position on the technology and some other use cases, publishing a paper on

de-fi. on the other side, you have the sec and chair gary gensler has been on a warpath for a number of years now just through enforcement actions and not really providing any regulatory clarity. tim: i hear warpath and i think to myself at the same time over the last year we have seen etf products allowed in the u.s. for easter and bitcoin -- ether and bitcoin. so it does not look necessarily to be like an administration or an sec that has been really hostile to crypto. what would you say to somebody who comes back at you with that argument? monica: i have the court systems to thank for that. the sec was painted into a corner there. we have seen a number of cases. in one case on the etf providing a way forward, in the case of

s.e.c. versus ripple, again last year, they argued it is not a security so that is good and creates clarity for our industry and our business. sonali: paint a picture, monica. if we get the regulatory picture sorted out in the united states, there are a lot of questions and how the stablecoin industry in particular can really start to rival even traditional payment methods. you look at traditional payment companies like paypal waking up to reality of stablecoin. what can the industry look like and why would it be a better alternative in your view? monica: we are really pleased to see the warm embrace of blockchain as faster, more efficient, lower cost globe repayment real by traditional players like paypal, visa, all of these payment network behemoths that have leaned into using stablecoins for payments the past one to two years.

that is a use case that we see as being rife with inefficiency today using traditional systems. you have many networks, many intermediaries, cost friction, opaqueness, delays to the system, so we are seeing traditional players working with crypto native companies like ripple to improve the customer experience they provide. sonali: really quickly, monica. in the next 30 days or so given that we have an election coming up about what is the one thing that you think might change whether trump or harris is elected? monica: i don't know that -- actually, i think what we have seen has been a positive development in the past year that policy around crypto and blockchain stablecoins has been really bipartisan. we see some movement in compromise from both sides of the aisle in the legislation

that is in place. i am very hopeful for the u.s. regardless of who is the president that we will continue to see this bipartisan constructive progress. sonali: monica, we thank you so very much for your time. that was ripple president monica long. this is bloomberg. ♪

sonali: italy plans to raise the capital gains tax on bitcoin to 42% from 26% as part of the effort to finance expensive election promises while cutting the fiscal deficit. it coul ckfire. two use ago, india imposed it on bitcoin which led to huge drops in trading volumes. this comes as the eu plans to fully implement the block

sweeping crypto regulations at the end of the year, and you have to wonder how that will impact volumes of course and friendliness of the country to the crypto industry. that does it for "bloomberg crypto." join us again next week, same time, same place. this is bloomberg. ♪ it's our son, he is always up in our business. it's the verizon 5g home internet i got us. oh... he used to be a competitive gamer but with the higher lag, he can't keep up with his squad. so now we're his “squad”. what are kevin's plans for the fall? he's going to college. out of state, yeah. -yeah in the fall. change of plans, i've decided to stay local. oh excellent! oh that's great! why would i ever leave this? -aw! we will do anything to get him gaming again. you and kevin need to fix this internet situation. heard my name! i swear to god, kevin! -we told you to wait in the car. everyone in my old squad has xfinity. less lag, better gaming! i'm gonna need to charge you for three people. gotcha. take that. whoa! bruh! i'm fine.

that smack looked bad. not compared to the smack down i'm giving you. you sure you're, ok? you know you're down 200 points, right? lucky, she convinced me to get help. i had a concussion that could've been game over. in actual reality, you've only got one life. don't mess with your melon. if you hit it, get it checked.

>> from the world of politics to the world of business. this is "balance of power."

live from washington, d.c. >> 20 days to election day. though they are voting already around the country. welcome to the fastest show in politics. as the presidential campaigns use these final weeks to crystallize their closing arguments. i'm joe mathieu alongside kailey leinz in washington. that you are with us on the wednesday edition of "balance of power." closing arguments coming in a media blitz that will not quit. >> it will not. already today we saw on fox donald trump's town hall with an all-female audience. we will later see kamala harris's interview with brett there as she tries to reach across the aisle to republicans who may be reluctant to vote for donald trump as she is trying to reach out to black men in particular. her conversation with charlamagne tha god yesterday. joe: