taylor: you mentioned the infrastructure bill, and we saw that exchange between brian armstrong in regards to the fcc. you worry that the tone between the crypto community and washington is getting hostile? jesse: not so much. we have a lot of conversations going on. we have been engaged with washington the last 10 years. one issue is there is a constant turnover in government, and you might have explained something to somebody three years or four years ago, and i have someone new trying to get up to speed all over again. i can see some of the players in the industry i may be getting worn out and tired of not having clarity, and they are trying to understand why these 80-year-old laws are trying to be applied to cryptocurrency, especially in cases where it seems it is hurting consumers, offering them 5% yields in a market where their banks are maybe talking about negative interest rates. why would that be bad for the consumer? who stands to benefit from a policy for having that? -- policy for having dashiell and i don't think that is why those laws were created it is time to get the legisl

will think twice about threading again on twitter >> i think brian armstrong is cfo, hold mr. gensler in c contempt, and that's a very ill-advised strategy the last i looked mr. armstrong runs a private company and the purview of that company is chairman gensler so when you take gensler on, that's kind of like taking on the person who says let me tell you what you can do and not what you school me on i think that maybe mr. armstrong's going to be a little more circumspect going forward after that interview. >> we'll find out. >>> plenty of other things for us to keep an eye on this morning. i got to start off with our parent company stock which just cratered yesterday comcast shares down 7.3%, this after michael kakavanaugh. we did do it yesterday obviously and told you about t made some comments that indicated a slowing of growth in broadband not much of a rebound. four years ago, same conference, different gentleman. same thing, basically warned about slowing cable subs, stock went down 7% in one day. history repeated, many of those investors were aware of those 217 c 2017 c

previously they characterized all points and securities until their team does not coin they see brian armstrong. net. now the view that the lending product is the security under the purview of sep, he tweeted on wednesday in a 21 post read detailing the fcc feelings with the firm saying that there has been some really sketchy behavior coming out of the fcc. recently, armstrong, explain that coin, they approached the earlier this year to read them on the up and coming coin with len program that basically just offered a 4 percent annual yield on the part of your d. c. nothing too fancy. so i'm sure that i think they responded by telling them that the lending program is a security without any explanation and 20 sou, if they refused to tell us why they think it's a security. and then the peanut a bunch of records from us, demanded testimony from our employees, and then tell us that they will be doing if we proceed to launch isn't 0 explanation as to why. now when basis chief legal are also disagrees, the fcc keep question, be assertion that the lemming feature can be deemed as an investment contrac

brian armstrong says they are using imitation -- intimidation tactics. we break down the evolving battle royale. elizabeth holmes officially on trial. she could face up to 20 years in prison is convicted on fraud and conspiracy charges. we will take you to the courthouse live on day one. a moment of truth for gamestop. we break down the quarterly results and see if brian cohen is delivering on his turnaround strategy. that in a moment. let's look at the market. >> it was another big risk off day for the major indices. the s&p 500 down for the third straight day. a stretch of losses we have not seen since mid-july. a lot of investors were warning it was going to be a seasonally challenging period. that september would be a rocky month for markets and equities. that is what you see playing out this week. even big tech down. as well as the russell 2000 index of smaller companies. down more than 1%. areas of performance are cryptocurrencies. bitcoin was down as much as 17% at one point. it really continued. the underperformance down about 2%, hovering around

i've known gary for 20 years is probably the most sophisticated of regulators so the idea that brian armstrong, obviously a self-interested man wants to take on the s.e.c., what is it like a street fright sharks jets? >> all he's asking for is some clarity. he just wants some clarity for them so they understand the world they're operating. >> clarity why not say -- >> they may have been ill chosen words. >> suboptimal choice. >> they may suffer consequences from doing that. at the same time you can understand perhaps their frustration at not understanding what it is they're supposed to do. >> you don't air your frustration in a tweet gary gensler. >> i assume if you believe the s.e.c. has to operate in a political framework to some degree, he may be trying to sway enough public opinion to pressure the s.e.c. into altering their behavior. >> i think the idea of pressuring the s.e.c., it's easier to pressure the southeast conference, that s.e.c. than it is -- which by the way, some of the teams look pretty good i think this is shameful behavior frankly there should be respect for the regulators

brian armstrong says the regulator will create an unfair market as it tries to shut down the lendingct. global news 24 hours a day on air and on bloomberg quicktake powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. rish? rishaad: all right. we have commodities into the global supply chain crisis. we have a finance minister saying that the country supply chain has improved amid constraints telling bloomberg that inflation is starting to come down as supply and demand balances. >> not permanent. why? because we look at the circuit. you came to covid-19 and with -- a low inflation, low interest rate environment. and everyone is open, oh, low interest rate environment. so, with covid-19, you spend the money with a stimulus package and all the blah blah blah. ok. after that, they tie to the high, and also huge destruction and supply with demand starting to pick up. imbalance caused the inflation, which we are witnessing now. however, once the imbalance, the current and came back to that balance, i'm expecting inflation to

brian armstrong and coinbase, you know, kind of hate tweeted the s.e.c.nd pulled the product, now tim sweeney kind of lost on that app store section of the lawsuit still doesn't get back to the app store. tim cook doesn't tweet much. he's doing okay. >> he doesn't tweet much but his comments are still getting leaked out despite his best attempts >>> at facebook, a top executive will leave his post next year becoming an adviser. he has been a close confident of zuckerberg and he does oversee the future growth drivers including the ai, virtual reality, augmented reality and blockchain units andrew bosworth has been tapped as his replacement bosworth developed features including the news feed and messenger, both key to facebook. mark zuckerberg talking a lot about his interest in building the social platform into a metaverse company. this tap into bosworth shows a commitment to bos since he has been working on all the metaverse initiatives. several high-profile depart choours h have hatched this year interesting to see bosworth focus on hardware as well as t

s cross hairs the ceo brian armstrong going public with his frustration on twitter late last night notingwith s.e.c. requests for documentation in interviews with employees only to have the s.e.c. file paperwork indicating it is prepared to sue with no explanation according to coinbase as to why let's bring in the director of news at the block. what's going on here >> thanks for having me on clearly coinbase is asking for more clarity from the regulators abouta product that they wante to launch this summer. they announced it back in april, and the s.e.c. has not given clarity reason why they don't want them to launch this product. and if coinbase according to their ceo were to ultimately launch it the s.e.c. has indicated they would sue them. that's the high picture situation. that boils down to what they say is a lack of clarity. >> so what is the product coin base wants to launch in other words, if i have x thousand dollars worth of cryptocurrency in my account i could lend that money, which it is out to someone else who is qualified and collect interest on it the way i might lend secur

i applaud brian armstrong's judgement and the brother of his business i think it was a little forwardse against the sec. i would say, each time, this thing is heading for $2.5 to $3 trillion over the next 24 to 36 months it is not going anywhere it is a big enough asset class he's taught the class. i recommend it to people download it from mit he understands how adaptive and maliable these currencies are. so, yes, i don't think it is fair what the sec is doing, frankly. >> great to see you. >> my general counsel is really mad at me right now. i just said this is a real fake video of anthony because i said i don't think the sec is doing something fair i'm going to get yelled out by my gc after this >> we'll let you know. coming up on september 29 delivering some of the biggest names private funds, equity and cnbc anchors and reporters will be leading high-level discussions through virtual one-on-one panels. for more, can you go to cnbc delivering alpha.com we'll see anthony next week at his salt conference as well. >>> looking forward it it. the fraud trial of elizabeth holmes years af

ceo brian armstrong tweeting the s.e.c. refused to meet with him in may during a trip to washington, d.c. saying they weren't meeting with any crypto companies at all direct listing price up less than 5%. going public, since going public in april what do you make of armstrong taking a relatively aggressive stance and will lend be able to launch at all? >> julia, in a way makes sense to take an aggressive stance, because he wants to move his product forward. had this thing in the pipeline tried to meet with the s.e.c wouldn't meet with him meanwhile, competitors who aren't public are already doing the same thing look, i can see why the s.e.c. might be wary. the sort of product my mother would tell you not to go into. these -- i mean, yields of 4% when banks are offering so much less and guarantee the principle but just the principle looks like a savings account, carl, but it's really, really not. >> yep definitely pushing the envelope, and, of course, if you missed the 9:00 a.m. this morning, guys cramer said his sources wit

coinbase ceo brian armstrong responding on twitter calling it sketchy and pointing out the many otherthe same kind of program. why are we being the victim now. coin based in the $259.94 fellow trading platform and potential sec target robinhood sliding at this hour as it confirms it will begin offering recurring gradual investments for crypto currencies, that is not helping the case today, down four and a quarter% crypto minors down after yesterday's bitcoin route courtesy of a shaky start to el salvador now legal bitcoin debut making it so-called legal tender. you can use anywhere in the country marathon and riot are getting hit you marathon down four and three quarters% right down five and a quarter% of the purchase is 3000 micro bt high-performance bitcoin minors. we have got to get to this breaking news it's like the trial of the business network century elizabeth holmes arriving in court look at this group before noon yesterday easter today as opening statements begin and the federal trial against the founder, the prosecution team telling the jury this is about fraud, lying and c

-- after ceo brian armstrong claims sketchiness coming from the sec.uld have allowed users to earn around 4% interest on their coins peggedded to the u.s. dollar or other currency. finally, we saw a big night for streamers. i want to show grow "the crown" winning best dramatic series, first time netflix has nabbed this award. only took them eight years, and apple's "ted lasso" sweeping the comedy series at the emmys, and it shows you streaming is dominating and, yes, they're spending a ton of money on their content in order to grab those awards. jackie: they sure are. the tide is turning. the pandemic might have sped it up, but it is remarkable. susan, thank you so much. >>> all right. turning to another looming net over the markets, our next guest says it's not just the fed and china, it's the threat of ransomware attacks. black heights ceo paul padgett joins me now. great to see you. according to your research, roughly 15% of the nasdaq 100 would be susceptible to a ransomware attack. that's pretty scary when you think about it. >> it is. in fact, 40

cryptocurrency fan, mark cuban, actually urged coinbase's ceo brian armstrong to go on the offensive.ec taking a hard-line bringing in former securities & exchange commission attorney lisa berganza. explain what gary gensler's position is right here? what is he trying to achieve? >> well the position against letter is take is really not surprising to me. i don't think it should have surprised coinbase either. they, the securities laws expressly cover notes and other types of lending instruments. that is exactly why coinbase is talking about setting up. you know, you can look in the statutory language and it mentions notes, bonds, debentures, things like that. so, you know, first we've got the language of the statute. then we've got years and years of court rulings including supreme court rulings that have looked at this. so you know, the supreme court says hey, what you do, you look at a family resemblance. let as look at the coinbase lend program. what does it look most like? well, to me it looks like either a money market account or a bank account. so if we say okay, how, it is most

why did you add more >> i've talked about the stock before i own the stock, i'm a big fan of brian armstrong, i'm a big believer in the technology around cryptocurrencies. yesterday with the big kerfuffle with sec and coinbase wanting to offer a yield product, the stock sold off it came down to about 257. i think what people need to understand is, last quarter coinbase did about $2 billion in revenues, i think $1.6 billion in net income. they also have $4.4 billion in cash so if you look at their runway, this company is growing so fast. i think over the next year or so, you can see their net income for a year come in close to $8 billion. the stock is at about a 50, $55 billion market cap they also just entered, they got regulatory approval to offer coinbase in japan and germany, which are really big crypto markets. i think similar to when paypal last year announced they were gone over cryptocurrency, just like square, very accretive to their bottom line. i think it's early days for coinbase i took the volatility yesterday to add to the position >> good stuff, we appreciate you updating us on

celsius that have almost identical prosds that have been launched and coin bastee has sad you heard brian armstronguldn't interact with the sec. they were blindsided by the idea that the sec would come out with enforcement action against them. they said they're taking a more ka cautious approach. there have been a couple of cease and desist letters out of sort of state legislatures, so did question going forward will the sec take aim at some of the other companies that have launched this with a good amount of success they have products that are not necessarily banking products but they're high-interest, you know, 8% to 9% interest on crypto and the sec meanwhile is wondering, wait a minute, that looks a little bit more like a bond or some sort of security. i think there's a lot of attention on some of the products that don't really have -- you know, there's no precedence they're completely new product and the sec paying attention >> we can say coinbase are only down a percent let's get a quick check on markets. dow down about 840 point at the low of the section, down 766 right now. the nasdaq down

>> brian armstrong in that interchange, he was ready -- he was hoping to speak with chairman gensleridn't happen. i also thought when he caught gensler doing sketchy actions, i thought that was ill-advised it was ill-advised as that pass by hieineke when he should have run and comes off as an offside penalty. i think armstrong is more ill-advised than the giants coaching. >> i like that everything comes back to the nfl. >> the bradys are good this year >> jim, white house has a statement saying that failing to raise the debt limit could cause a rec recession how much are you thinking about this >> i did a study of this, and you had to buy every time some high official said it would cause a recession. so i just got the buy signal from the president. >> is that thrrue? >> i know the president says he's a capitalist. maybe he's focused on the work i've done. >> mcconnell said in 2019 that failing would be catastrophic. >> 2011, remember that decline remember that decline? i was at eagles training camp, and i was very worried about team, but a guy who played cornerback who obviously was

a new product that would have allowed customers to earn interest on things like staple coins brian armstrong firing back in a series of tweets last night calling the s.e.c.'s actions sketchy, pushing back on the s.e.c.'s claim that coinbase's lending program qualifies as a security millions of crypto earners have been earning yield on their assets it has recently caught the aengs of regulators. they have been facing pushback from a handful of states, including new jersey high-profile names in the cryptocurrency industry have been criticizing the s.e.c. for not providing clarity on how to regulate crypto deposits and loans. if we end up in court, armstrong said we may get the regularulatory clarity we are looking at shares of the world's largest crypto exchange falling by as much as 2% taking a step back you'll see it's down as much as 40% from its 52-week high wilf and morgan? >> seema, it raised some eyebrows with the commentary words like sketchy in the twitter thread i wonder if there are other examples with some of these companies more newly public, perhaps, that we can point to as other

a guy named brian armstrong ceo, asked for a sit-down with gensler, didn't get it. is wells notice delivered to him. this is the one of the bizarre things of the gensler sec tenure so far, it is new is that people just get hit with stuff. he makes pronouncements. he doesn't do much in terms of investigations before he does these pronouncements. certain things he doesn't like he goes after and it is just very strange. i asked securities lawyers. who will come out on top? coinbase from what i understand is still weighing its options. it may issue the product and choose to have the sec come after it and sue them and they will fight them in court. they don't know yet where they're going to do it but you know if they do that, and win, they will essentially be making law. again, i'm telling you, this is a very strange sec tenure, neil. if the republicans get congress, particularly the senate, the direct regulator of sec he will be grilled, he will be spending a lot of time on capitol hill. he may want to think about other employment. maybe go back to goldman sachs or mit.

brian armstrong had been quite outspoken against the sec but appears to have taken a mu tax away frome crypt as to market is in this growing up period writ started as a you know a movement outside of governments. right? and i think there is a real realization for it to make the next step. it's going to have to work with govern fans. that said, people in crypto want good regulation. gary genzler has come in he is a very smart guy he wants to be the sheriff of the town unfortunately because this is a new asset clarks it's not clear where the sec's powers start then do they have the power to regulate things if they're not securities and so, there is a lot of you know pushing and pulling right here both in d.c. and amongst the different regulators i think it's important - >> you mate be getting a call from martha right now? richard gere could be calling. who knows? you want to pick it up we all like to listen in maybe gary genzler is calling. what i was going to say is one of the things you hear from a lot of pro points of crypt as to right now is we want regulation. we know we need regul