unless the crypto derivative platform is registered with the cftc.t a straightforward process. binance is not allowed to do that even though they say they had been working with regulators the last couple years. how the cftc says binance managed to get around this, there are a few ways. the first as they say they allegedly instructed u.s. customers to use vpns. to circumvent geo tracking rules. also directing vip customers, including institutions, to open binance accounts under the names of shell companies. yvonne: he has responded to the allegations. >> he did post on twitter with a more obscure number for which relates to a post he made earlier this year to a nor -- ignore the uncertainty, fighting the market amongst other objectives. a longer statement came out on his website. he said cftc actions were not only unexpected, they were also disappointing. he said binance disagrees with the characterization of many of the issues that are alleged in the complaint. they expect to give a full response in due course but some things are highlighting is they

the cftc says he also broke the rules. the allegation is senior managers failed to properly supervise their activities and take steps to violate u.s. laws, that clue -- includes instructing american customers to use vpns to obscure their locations and directing those customers with u.s. ties, there are institutional markets to open binance accounts under shell companies. this is something binance has rejected. they say they have taken significant steps to ensure they don't have any u.s. users active on their platforms. kathleen: let's get to vonnie quinn now with first word headlines. vonnie: tennessee police say the suspect in a national school shooting had drawn a detailed map of the building, including potential entry points. 39-year-old children and three adults were shot and killed at the christian elementary school. police shot dead the attacker, i didn't fight as a 28-year-old former student. president biden has again called on congress to ban assault weapons. the israeli prime minister says he will delay a controve

it is clear, the cftc says that cz was at the top of this and the lawsuit with the cftc is using to allege that cz was pulling the strings. they claim in january of 2021, that cz signed off on the expense of $60 related to office furniture in the month the company made $700 million of revenue. that is what they are using the show how close and involved cz was in binance and global operations. that gets to the heart of what the cftc has issue with and allegations they are making. >> that is a granular detail. very interesting detail to that case. also, recently, you were at the crypto conference. what is the action with the other coins this year? >> they are bullish on the industry as you would expect despite some of the regulatory headwinds. several suggests that bitcoin could re-test the all-time highs of $69,000 again. one suggesting it could be above $100,000. i argue lot of headwinds at this point. the all-time high key is getting investors back on. the bump at the start of the year has been down to very few players and low liquidity at this point. retail players haven't entered back a

and the cftc getting together really and creating some common standards.uld be a much more reasonable incremental way to go. and later on we can sort out exactly which ones are security. >> should the different organizations be able to create a new coin every day i mean, given the fact that i see -- look, there was a lawsuit just yesterday, s.e.c., someone created a lot of coins and stole a lot of money from people i don't think that this is the right way to run a banking system >> well, we can't prevent people from doing things like that. look, we want to encourage private innovation i've always said in my comments on this industry we need a regulatory framework that allows for innovation as long as we just ensure investor protection and transparency we shouldn't be trying to shut this down. we shouldn't be trying to tell people exactly what they should and shouldn't invest in. we should let people make their own choices. but we've got to have much better investor protection, much better transparency, and just compliance with the law, which is what we're

we will talk about it with commissioner of the cftc at 7:47 a.m. i don't see anything in here. >> they don't talk about the violations. this is not ftx. none of the same allegations. >> not that it will be. >> they are talking about violation of u.s. laws. the contracts sold to people in the u.s. unless you are approved by regulators. they are not. there is clear evidence which has been leaked that all the way up to cz, they were looking for ways to allow u.s. customers to continue to trade and try evade u.s. things like telling them to use a vpn and not come in from the u.s. ip address. there are some communications coming from cz to other staff members to talk about this. some clients were important to them. one of them is a chicago headquarters trading firm which is a top five client. it was important for binance to keep them as customers. it looks like they were looking to get around u.s. regulations. >> we need them. i agree with binance response, but things need to be laid out copletely in a clear regulatory regime. >> i agree with that. bina

more expertise more appetite for enforcement and the cftc does. unlike the cftc there is a statutory mandate to protect investors. the status quo is simply untenable. i look forward to discussing the way forward with you. >> german brown, ranking member scott, and members of the committee. it is a pleasure to be here with you today. thank you for the opportunity to testify. the committee is where i cut my teeth on financial policy i have been impressed and am thankful for the bipartisan ship. today's hearing is yet another example of its leadership. with inflationary pressures not seen since 1970's. i have been asked to discuss how best to strategically think about the regulatory future of our digital economy as a regulator myself i am particularly concerned about this area of our shared digital future and how we can all ensure the best outcome for american consumers will produce -- promoting innovation i am testifying in my personal capacity. i am a visiting scholar at the institute of international and economic law. in addition i am global indus

again, this has been put forth, this suit, by the cftc u.s. regulators against binance and cheng peng zhou, among others. that's the reason why, the proximate cause, for bitcoin prices. we'll keep a look at the derivatives. coinbase shares falling lower, and others tied to that ecosystem. we'll send it back to you. >> watching microstrategies and others. thank you for that. >>> still to come this hour, baird taking caterpillar to sell less than two months after cutting to neutral. morgan stanley says one big cap tech name has 50% upside ahead. we'll break down some of those calls. the ceo of carnival is with us after reporting results earlier this morning. thi what do you see on the horizon? uncertainty? or opportunity. whatever you see, at pgim we can help you rise to the challenges of today, when active investing and disciplined risk management are needed most. drawing on deep expertise across the world's public and private markets in pursuit of long-term returns... pgim. our investments shape tomorrow today. what if you were a gigantic snac

>> cftc is the one filing this suit in chicago today.ainst binance, the largest crypto exchange in the world and its ceo or allegedly breaking trading and rivets rules. regulators saying binance shirked its obligations by not properly registering with it. no the cftc has been probing binance the last several years going back to 2021 to see whether it failed to keep u.s. residents from buying and selling crypto derivatives. binance and binance u.s. are intended to operate independently. there has been a lot of a question as to whether or not independence is significant. this is one regulator that has been probing binance in recent years and has come under scrutiny by the irs and related to monday -- money laundering rules. this is yet another regulatory blow to the biggest crypto exchange in the world. guy: what happens next? does it impact the business on a day-to-day basis right now? it is going to take a lot of management time to deal with this, but is this something that is going to have a meaningful impact in the way binance operates

the cftc has accused bytedance and its ceo of thinking derivatives rules as the firm grew to be thoughgest crypto trading platform. their own emails and chat messages show its compliance efforts have been a sham. the suit filed in federal court in chicago is the most forceful u.s. move yet to crack down on the crypto exchange. the chairman of barclays has described the recent allegations of jes staley with his relationship with jeffrey obscene serious and new. it's the first update since ceo left the bank in 2021. he quit after regulars found he underplayed his relationship with the pedophile financier. he's challenging those findings. global news powered by more than 2700 journalists and analysts. kathleen: fears of contagion the banking sector have eased somewhat. let's bring in annabel. is this coming from jp morgan? annabelle: this is indeed. it is the team led by marco glenna veg. he says this level of uncertainty we have had in the banking crisis is going to play out for a time to come. it's going to be noticeable in two ways. first, you will see upward pressure on risk premium a

up crypto investors making the best of a bad situation prices are all higher today even after the cftc filed a suit against crypto exchange bin mah nce. why? we'll explain. plus, healthy returns just last hour we spoke with some of the biggest voices in the health and medical elfid. meg tirrell will join us with sop of the key takeaways "power lunch" will be right back >>> welcome back to "power lunch," everybody. stocks are higher across the board today. the industrials, the dow, that putting on a nice gain of 200 points but in percentage terms the s&p 500 is up even more and even more than is the nasdaq composite. smoke may be clearing on the bank crisis and investors may be increasing their appetite for risk let's see what bob pisani is hearing at the nyse. bob? >> tyler, you're absolutely right so we're heading into the quarter and some interesting things are happening the two most important things. volume is calming down, not nearly as heavy as it was the last two weeks and volatility is calming down what that means is people are not as worried as they were two weeks ago and the m

they are fighting back against that cftc complaint. thank you so much. prime minister of israel benjamin netanyahu said he will delay a controversial plan for the jewett -- judiciary after strikes and protests paired he is now seeking a compromise with opponents of the bill. >> when there is an opportunity to avoid civil war through dialogue, i as prime minister a.m. taking a timeout for dialogue. i give a real opportunity for real dialogue. we insist on the need to bring about the necessary corrections in the legal system and we are given an opportunity to achieve a broad consensus. this is a very worthy goal. dani: those statements from benjamin netanyahu file nationwide protests on monday. let's get over to simone foxman. what has been the reaction to netanyahu's pause? simone: honestly, i think there has been quite a sigh of relief here from people on most sides of the aisle in terms of israeli politics because what was happening yesterday it seemed like things are spinning out of control. we saw the economy shut down and flights canceled at the majo

and we have a cftc license and we are registered and have various money transmission licenses, and thatt in the u.s., but i think we need more crypto-specific regulation in the u.s., both around stablecoins, how centralized exchanges and custodians are coming you know, the best practices they should have in place around audits and not co-mingling funds. many of those things we are already doing. and the big piece will be getting clarity around what is a commodity, what is a security, what is a stablecoin? and we need an updated version of the test the sec uses that applies more to cryptocurrency. so there is a lot of legislation being put through congress now, and coinbase has been very active in d.c. working with policymakers there. there is strong bipartisan support in the u.s. to get clear crypto regulation. the ftx situation created a little bit of a delay in the legislation i was hoping was going to be getting passed the next quarter or so, but i think the next year we can hopefully get something in the u.s. and go for the rest of the g20 as well. david: sam bankman-fried was well

one interesting thing was the idea that a lot of the assets associated with coinbase, they have the cftcd a lot of these are viewed as commodities as well. he was pretty specific about how they choose not to list assets. another interesting point is as regulators move on beyond tokens and securities, you are also asking about staking and stablecoins, another part of the crypto ecosystem that helped provide liquidity and helped move assets from one place to another. i think the stablecoin question is relevant because it has a relationship with circle. the relationship with regulators is interesting for a lot of reasons, but even though we have seen a decline of the year of coinbase's stock, it's interesting that they are taking look at things like staking across the industry and stablecoins across the industry. ed: thank you so much. caroline: let's have a look at what is happening in the world of tesla. up by 2.3%. this is the master plan .3. we anticipated news coming around this as we look at the future of this business. outlining how you can have a more energy-efficient world. tesla a

lots of accusations, protect lily now from the cftc that actually according to it, binance has been trying flap form by using vpn, virtual private networks, which hide where you are based. so these are part of the accusations, new accusations that we've seen this week. talk was about _ that we've seen this week. talk was about money _ that we've seen this week. talk was about money flows because recent turmoil in the banking sector is put more money in motion, hasn't it? just explain that to us. it motion, hasn't it? just explain that to he— motion, hasn't it? just explain that to va— that to us. it hasn't aid. this relates to — that to us. it hasn't aid. this relates to ordinary _ that to us. it hasn't aid. this relates to ordinary deposit i relates to ordinary deposit that people and businesses have, at some of those smaller regional banks. because of the jitters we've been having, some of those deposits are 280 billion dollars in the first couple of weeks of march. they've moved into money market deposits which i deposits largely in government debt. the problem with this is that these s

explain the dynamic of cftc versus sec in this crypto player.ead that headline. basically because this is about derivatives, the sec has been looking into binance, but specifically about whether it supported the training of unregistered securities. because it concerns derivatives chiefly and what american customers are doing, that is why. tom: so binance goes --we don't need american customers. do they pull away from the united states and canada? katie: that is the narrative, where does this leave the crypto industry in the u.s.? we could see binance continue to focus on overseas operations. but part of it is if you think about the large market makers, institutional market makers, they are based in chicago and new york. at binance you want those on your platform. tom: who is market makers? katie: jump has had a lot of forays into crypto. it is not specific to this case but if you think about the heft of market-making institutions, what powers the is equity markets and the crypto markets, and a lot of them are based in the u.s.. tom: i would have

this is only a lawsuit from cftc, there is not crypto -- criminal charges.the minute, what we're hearing from market makers is there is no reason to panic. that does not mean they are not priming themselves for anything that could come down the pipeline after the suit. tom: really interesting in terms of how market participants are assessing this move. what is the broader implication for the wider sector of this? does it suggest that regulators are arming themselves for more action broadly across the space? >> we have seen a major uptick in enforcement from the u.s. over the last two months alone. we had coinbase last week. and actions against paxos which had a stablecoin wit coin bith binance. the partnership had to end. regulation, for enforcement as the crypto industry calls it, is the current modus operandi for the u.s. we don't have any bills in place, so this is the only weapon they have two get some sort of harm or reach around the crypto industry. tom: really great explanation as to the recent and most latest events unfolding across the crypto space.

on top is the s&p 500, below is the cftc data on whether speculation about whether investors are longrt. right now they are close to a record short. the last time we were at a record short was the start of the bull market. this area of congestion may just be what everyone has been talking about, a possible bottom out of the october low. certainly looks like an inverse head and shoulders pattern, buyers getting their act together, potentially going to take the s&p higher. not helping today are the banks. the kbw bank index down 3%. regional banking index down even more. a lot of this has to do with s&p financials not great. jp morgan also down 2%. silvergate is down more than 30% today. this is an incredible chart. i guess what goes up must come down. silvergate going out of business. guy: thank you very much, abigail. we will talk more about this in a moment. let's talk about what is happening with bank of america, one of the few wall street banks to avoid big job cuts in recent months. brian moynihan spoke to francine lacqua earlier about what is happening with the u.s. labor market.

you have the cftc wanting to step in.g years, while we're watching crypto skyrocket, collapse in some cases, bounce back and a lot of investors who are at risk in the meantime. >> right but we got -- as i said, small progress last year in getting the biden administration's attention to work with us on that legislation but then they started this new enforcement effort and it seems to be aimed at companies who tried to come into the s.e.c., for example, and ask permission on how to do something there were no cases against ftx last year. they didn't stop ftx's collapse. but they definitely have been attackingkun companies who are registering and attempting to register right now you have my commitment that i'm going to work real hard this year to get consensus on a bicameral basis on capitol hill, a bipartisan basis and i certainly encourage the biden administration to work with us so that we can promptly bring definition, legal statutory definitions to this market to give chairman gentzler and the cftc and the banking regula

calls in there, just like buying them in apple, anything else, except since this is commodity at cfe, cftcities futures trading commission governs this rather than the sec this is safe. none of those members of the, have ever failed. so i think this is the best way to play for the upside in bitcoin is through the options over at the cme. charles: all right, jon, always appreciate you, my man. thank you very much. >> thank you, charles. charles: folks, started out as a start-up. we got one founder of a business who will give us her, she will go over the rates she had to go through to get funds from silicon valley bank, not knowing there would be a bailout over weekend. she was racing the clock to save her life. president biden says the money is not coming from the taxpayer. where is the money coming from? we'll ask jim rec kerts. you will be shocked about this. how to protect your own savings even with a fdic limit. ♪. >> tech: when you have auto glass damage, trust safelite. my customer really relies on his car's advanced safety system. [alarm] >> instructor: veer right. [ringing] >> instr

is that you have multiple regulatory bodies, the s.e.c., the cftc, you also have state by state led regulationt forth who exactly is supposed to regulate what and i think to your point there might be some confusion with respect to crypto versus block chain versus web three and where the regulation p comes into play. you look at japan, they have one regulatory body, the financial services agency which sets all crypto regulation and they're probably one of the best frameworks around the world with respect to what crypto might look like tomorrow from a regulatory landscape. maria: chris markowski, jump in here. >> my question is this. we take a look at all the financial fraud that happens over the course of the year and last year was a record year and that's the s.e.c.'s job is to go over this. what type of budget are we going to be talking about here? how much are we going to have to spend -- we can't handle what we're dealing with right now then we're going to add crypto on top of that. i'm almost at the point where it's buyer beware at some point in time, you know what, you decide you want to

the cftc is viewing binance and its founder for illegally allowing access to crypto derivatives to u.so delive tyes are banned here in the u.s. also they're using tactics to evade and alert many case of any enforcement action that they see to their customer, and that is illegal. the sec and d.c., washington, d.c. lawmakers are going to the clamp down on crypto after ptx collapse. we've seen that with coinbase getting an sec notice, that's really just a step away from enforcement. so i think the clampdown is here. stuart: okay, that's important. tell me about walgreens, because i know they reported before the bell the morning, and i know they're up 1.3 3%. susan: it wasn't that bad actually. you had a profit, sales beat as well in the final three months of last year. margins were coming down, sure. we know there's lower demand for covid services, but i saw 8.4 million still went in in the final three months of last year to get covid shots, so people are still getting boosters. stuart: i'd love to see if there's any news on shrinkage, shoplifting at -- susan: i don't see them mentioning

back into risk assets, like bitcoin and you saw yesterday, binance which has been sued by the cftc, alsoell, $2 billion in out flows. where does that money go? you imagine it goes to other exchanges possibly to coinbase and last night you had cathie wood buying 50,000 more shares of coinbase after buying 20 million-plus last week. so it's a conviction trader. stuart: yeah, has she got money flowing into her? >> yeah, well she said that the $2 billion in losses last year is going to be harvested as a tax loss, so that, you know, could help on the balance sheet. stuart: how convenient. lucid is laying off people, i believe. why are they doing that? >> yeah, 1,300 jobs so 18% of the workforce. of course costs them around $30 million in the quarter, but look. making electric cars, lucid is finding out is a tough business. elon musk will tell you that with tesla. tesla only delivered a profit after 10 years in business, and lucid's only delivering 4,300 last year, only 4,300 cars last year, burning a ton of cash, but here is the problem this year, is that they have reservations for 28,000 car

when are they from cftc. yeah. when are they going to get into that?pletely ignored by the mainstream media in the us. so you know, that could be part of it as a bit of a distraction, but it a bit of a conspiracy theory. but, but, but remember theory. but, but, but remember the democrats do really the democrats do this really well. did it in the well. they did it in the midterms in 22 can't they midterms in 22 they can't they gave campaign money and had advertising supporting trump trump candidates in the primaries so they wanted to run against the most trump affiliated candidate . so they affiliated candidate. so they bankrolled candidates in the republican primaries. bankrolled candidates in the republican primaries . and it republican primaries. and it worked. and it actually worked. but i mean, it's dirty, but it's it could have finished biden off . and he did very well in those midterms because of this machiavellian policy. yeah you're right. and so you're absolutely right. and so the democrats, you know, they they to play dirty. they know to how

it's chaired by the secretary the treasure includes of the fed, occ, fdic, cftc. fact all of our witnesses today take part in those meetings, do you not? participate in fsoc as member agencies. >> is it also to identify risk to the financial stability of the united states? yes or no? >> that is among its functions. .. >> previously as a core function of fsoc is to look at risks across the financial systems for a quick review of the fsoc leaving many stated september 262025 pages were the other two climate financial risk to mr. barr many of those comments came from you. i can find any pages devoted to market in news reports of the apparent looming problem with signature valid bank and signature bank. in fact, in december 2022 signature valley bank was listed on the snp global marketplace as the top u.s. bank by proportion of uninsured deposits at nearly 94%. only four of the banks were estimated to be above 80% including signature bank but none of that was mentioned in your december 16 meeting. are those factors that are born to comprehensive monitoring of the stab

let me ask you last year the committee heard from the cftc chairman about the potential risk of fraud and emerging markets due to the lack of regulation and guidance from the federal government and as you know working with of the department, we appreciate the technical assistance. we passed a growing climate solutions act that senator braun, senator bozeman and myself worked together on and it authorizes by law we take first steps to protect farmers who engage in carbon markets. can you tell us what you sca has done to implement the growing climate solutions act and what more the department can do to ensurere that they have integriy and i assume as you talk about more revenue streams that this is part of the options for the growers as well. >> that is correct, madam chair. we are focused on responding to the direction to provide a report toio the committee by augustst of 2023. we are in the process of putting together the team that will essentially do the groundwork surrounding that report. we will also be looking out and doing a review of the existing carbon market system today. i th

do you think congress is eventually going to do -- the cftc, the s.e.c., what's the best outcome for like congress is probably going to have to play a role here in establishing who regulates what. i don't think this is something the s.e.c. can do on their own clearly we are seeing a lot of talk already in congress about crypto most of it is just sort of reacting and it's kind of negative, and it's like, you know, we need to do something, but it's unclear what exactly is going to be done there's some basic things that could happen out of washington there's been talk about rules. the u.s. still doesn't really have a clear road map for that so yeah, i think it's going -- congress is going to have to play a stronger role in establishing sort of just some rules of the road for crypto, which we don't really have right now. >> how important would it be to have a spot etf for something like bitcoin is that ever going to happen what's the time line for that at this point what needs to be done for that to actually happen what would chair gensler need, do you think >> well, i mean, it's hard to