coinbase is having a tough time with the sec right now. the sec filing suit against coinbase.t is interesting, your analysis seems to predate all of that legal back and forth. how much is that regulatory overhang factoring into basically this gratian away from coinbase? dan: i think that is an excellent question. our data is from april. the reason it is from april is it was a got you moment, where we will able -- we were able to triangulate enough data points to hone in on that share loss in make it affect. the way i view this, everything that happened with the sec was subsequent to when we did the work, which means that it is going to get worse from here. i think this is the kibosh from here on. it was bad before, it is going to get worse going forward. jon: what about, dan, the fact we have seen shares moving today on some of those headlines involving blackrock and the bitcoin etf bush? what was your reaction to that? dan: when i saw this, it is not new. coinbase traded up 20% last year when the blackrock news came out. this is kind of regurgitation of old news, as far as i

sec, does coinbase exist in five years? brian: absolutely we do. the sec chair may have a certain point of view but that is not representative of the u.s. government. quite the opposite. i would say the se -- the sec chair is an outlier in the u.s. government. when i meet with members of congress the broad consensus amongst 80% of people i talked to is a pretty reasonable view that is we do not know what this technology will become but we are seeing every other major financial hub in the world move towards clear legislation. we need to make sure this innovation happens in the u.s.. let's protect consumers and apply basic good ideas and modern financial statements and make sure there is no trading. let's create a clear market structure where businesses can understand sec, who should they talk to. congress is recognizing this in the white house is as well. the biden administration put out an executive order asking all the branches of government to get your act together on crypto. there are risks but there important opportunit

i had $3000 or $4000 left over when i started coinbase. know, i bought a little bit of bitcoin early on, but we are talking about a thousand dollars or something in that range. for the first five years or -- i mean actually, still to a large degree to this day, myself and other early employees, we took our salary in bitcoin, so you can imagine that had some interesting appreciation value. david: right. brian: we had to sell a lot of it to pay rent and things like that, so it was not like we were able to hold all of it, but yeah, they are definitely what -- there was definitely some appreciation there, but i wish i had more money in the early days, for sure. david: ok, so how do you respond to the idea many people don't know what they are doing when they are buying cryptocurrencies? they're not that well-informed, they're very young, and they're going to wind up losing their money because they are not experienced? how do you respond to that concern? brian: i think that is a valid concern across any type of investment that people might make,

this year, coinbase has had some challenges. i sat down with brian armstrong to talk about the future of his company. for those who don't know much about cryptocurrencies, what exactly is coinbase, and what does it do? brian: coinbase is the primary financial account for many people participating in the crypto economy. we help people buy and sell crypto and help them use it in a variety of ways. we think of ourselves as the primary financial account for people in that crypto economy. david: i know your different from another company i will mention, but if this what ftx more or less did as well? brian: ftx did one piece, which is the training aspect. david: what do you think happened? you have been quoted as saying there was more than the occasional bad bookkeeping. you think there was more than that, is that right? brian: that's right. i'm sitting here as an outsider, but it seems pretty clear to me it was not just a run on the bank or mismanagement of funds. it appears they took customer fronds -- customer funds from the exchan

>> coinbase and binance.ir belief is why don't you show us what you do instead of charging us, making us regulated by prosecution over and over again, over and over again gensler said, listen, we've showed you, register just like if you were a stock today is the day where he just says enough already. we're not buying into your whole rap that we have to play it your way. we're going to court saying you're violating these exchanges and register binance can't because binance is crooked. >> binance operates for the most part outside u.s. shores. >> but when you look at binance, they list all -- we used to put a bug on the right side of our tv, had a series of securities, they were not real, not real, just manipulated pieces of paper. >> they were never pieces of paper. they were always digital. >> i'm not trying to joke around here i think this is a massive fraud. when you have an executive saying something that i can't even rebeat, binance ceo admitted to a compliance officer in 2008, we're operating as a curren

for one thing, coinbase is based right here in the united states. we did not incorporate in an offshore jurisdiction like the bahamas. we are also a public company, which means we need to meet all of the audit requirements of a public company. and so, we show in our publicly audited financial statements, you know, corporate cash is separate from customer funds. and you don't have to take our word for it. a big four accounting firm has come in and proven that in these cases. there are other differences as well. we operate an exchange, but we have never created an exchange token like the way ftx did. we never operated our own market maker or hedge fund in the way ftx did, because we believe that that would be a conflict of interest. so the difference between the two firms, i think, cannot be overstated. it is really a validation of the approach we have taken at coinbase over the last 10 years to build this business in a trusted and compliant way, as opposed to what happened with ftx. david: for people who may not be that familiar with what your servic

on the one hand, coinbase _ discussions. on the one hand, coinbase is — discussions.nd, coinbase is basically _ discussions. on the one hand, coinbase is basically saying i discussions. on the one hand, | coinbase is basically saying we want to abide by the rules, but the ones is written don't work for these new financial instruments like cryptocurrency. on the other hand, the regulator is saying rules are rules and you are running afoul of them. it seems the us is making good on its promise to aggressively enforce rules to oversee the crypto industry. rules to oversee the crypto industry-— rules to oversee the crypto indust . . . . industry. that was a samira hussain reporting _ industry. that was a samira hussain reporting there. . industry. that was a samira | hussain reporting there. the sec also asked the federal court to freeze the us assets crypto exchange binance. it comes a day after they sued the world's biggest crypto exchange for allegedly operating a web of deception. the re—election campaign of us presidentjoe biden has said a decision by youtube to stop

su: if it deems the tokens that coinbase officer training as a legal, this is saying that coinbase's. operation is illegal. one analyst says this creates a life or death fight for coinbase. a huge drop-off as the suit was filed. you saw a big dip in price because of the binance suit. what the sec is saying is that the firm acted as an unregistered broker when it traded or allowed trading of all of these various coins. it now finds roughly a dozen points to be unregistered securities. this is its key line of attack against the crypto industry. it found that coinbase broke rules with its sticking service, something that coinbase has vigorously denied. follows on the heels of the 136 page sweeping lawsuit against finance on monday. brian armstrong, the ceo of coinbase, very quick to strike back. he tweeted out, a harsh criticism. saying that instead of publishing a rouble, the sec has taken a regulation by enforcement approach that is harming america. so if you need to avail ourselves of the court to get clarity, so be it. consider that the gauntlet thrown down. basically this 100 page

sonali: there are questions about how coinbase plans to spread abroad.k across the industry. what does this mean for other potential places you may expand? hong kong has invited coinbase to apply and register in the region. do you plan to? paul: coinbase has always operated as a global business, because digital assets and cryptocurrencies are very global. they are essentially global by nature. in a recent quarter already something like 20% of our top line revenue comes from our business operations and markets overseas. operating in other jurisdictions, looking for other ways to expand is not only part of our history, it is part of our mandate and mission to bring cryptocurrency to everyone. we will always consider the regulatory climate in every country in which we operate. it is heartening to see countries all over the world, the u.k., hong kong, india, singapore, adopting sensible rules for crypto that balance the need to protect the investors,, of course but promote and protect innovation. it's unfortunate as the rest of the world is rushing ahead the

i'm also continuing to look at coinbase. look at the shares of coinbase.e are up for a second straight session since the sec sued coinbase, accusing them of security laws breaches. we are up 1% at the moment. brian armstrong, the ceo, was on the show 24 hours ago, giving coinbase's defense, talking about what he is happy to go to court, and establish a baseline to the courts on how crypto exchange you should be governed in the country and also internationally. we will dig deep into the sector throughout the show. caroline: let's talk about a different crypto exchange. a pair of senate democrats are wanting the justice department to investigate whether binance lied to lawmakers about its business practices. let's have a listen. >> it is a crime to like to congress. we have gotten information from binance. they have given answers to me and to others in congress that seemed to be entirely inconsistent with now what the sec is charging that binance has done. i want the justice department to take a look. if they lied to congress, they need to be held accountabl

we heard from coinbase.ked to the top attorney at coinbase and they are bowing to take the legal battle all the way to the u.s. supreme court, the highest court in the land, if needed. they believe any court that would take a look at this might find the sec fundamentally wrong. of course the sec, dealing a one-two punch, claiming both binance and coinbase are illegal exchanges. the stock took a hit yesterday when the sec sued binance. it took a big hit, down as much as 20%, before recovering when the sec lobbed a 101 page suit at coinbase, alleging the firm acted as an unregistered broker, the same as binance. that it broke rules with its staking service. offering a return for putting up tokens to help facilitate transactions on the blockchain. it follows again the heels of the 136 page sweeping lawsuit against binance monday that alleged commingling of funds to the tune of over a billion dollars. the ceo of coinbase, brian armstrong, struck back in a tweet saying "instead of publishing a clear rulebook, the

now they have gone after coinbase and this is being vigorously fought by coinbase.that in a minute. the allegations similar. framing how the sec's line of attack is going. they are alleging the firm acted as an unregistered broker and broke rules for the staking service. . , as established with the binance lawsuit, they are listing more than a dozen tokens as unregistered securities, so any exchange that deals directly with that is viewed as illegal. take a look at how the stock reacted. it was already down yesterday on the binance lawsuit. it had a huge drop, 20% at the open, before regaining a bit of ground by the close. brian armstrong the ceo, hitting back, saying instead of publishing a rulebook, the sec is taking a regulation by enforcement approach. he thinks it hurts america and says if we have to go to the courts to get clarity, we will. bloomberg spoke to the top lawyer at coinbase. they will take this to the supreme court if needed. they believe coinbase and the sec's position and all of this is fundamentally wrong. the sec worked with 10 states to sue co

the other top story is coinbase, shares down significantly after the u.s. securities and exchange commission said it is suing coinbase for breaching securities law. bloomberg also has fresh thoughts on this from sec chair gary gensler weighing in on the state of the crypto industry, the steps in needs to take to protect customer assets and its integrity. >> i think the crypto industry broadly, if it is going to have success going forward, has to come into compliance with basic public policy about disclosure, about avoiding conflicts, about segregating, properly severed -- segregating customer funds and guarding -- guarding against fraud and manipulation. we have this whole area that stands the chances, collapsing like a house of cards. ed: the sec sues coinbase, we have sonali basak. what is at the core of the sec argument there? >> a few things we have to think about, the claim the sec is making, that they are acting as an unregistered broker-dealer and listing unregistered securities which has been up for debate in the cryptocurrency -- community when it

coinbase is not accused of any of this.t is unfortunate that the sec took action against coinbase the day after binance then chairman gensler was trying to implicate coinbase in the same way that he was implicating binance. no, they are very different. there are questions about security and about staking, those are the two questions that coinbase is facing. most of the other questions around binance have nothing to do with coinbase. >> we are seeing more scrutiny whether it's from the regulatory side in the crypto industry or from the legislative side with congress and hearings in intellectual and artificial intelligence. wouldn't stifle innovation and is this a concern for you? guest: in the crypto space, i will broaden it and save it in the digital asset space, it is quite a concern. innovation is leaving the shores of the united states and going elsewhere. we have a hostile regulatory regime right now. however, as i just mentioned in the legislatures of congress and in the judicial system again this checks and balances,

this time, regulators have taken aim at coinbase. plus a senate hearing focusing on a scandal involving one of the world's big four audit companies gets under way in australia. welcome to asia business report. another day and another crackdown on crypto by us regulators and this time it's coinbase, the biggest crypto trading platform in america. the securities and exchange commission, sec, is suing the company, for allegedly operating as an exchange without registering as one. more now from new york with samira hussain. in these latest charges, the sec said coinbase acted as a broker, exchange and clearing agency for investments that are subject to sec rules but they did so without properly registering, and that, the regulator said, allowed the firm to escape oversight, including guards against conflicts of interest. the charges against coinbase were not a surprise. as a publicly traded companyit disclosed in march of this year that the sec had notified it that these charges may be coming. in response, coinbase said the rules were no

coinbase hit with a lawsuit. we knew it was coming but obviously, investors taken aback by the 101 page complaint against coinbase. we are seeing cryptocurrencies fall in tandem. matt: very interesting news today. of course, the sec topping the list of the things we are focused on. it's crackdown against crypto continues with suits against coinbase today. here's what gary gensler says he wants to see. gary: if it is going to have success going forward, it has to come into compliance with basic public policy about disclosure, about avoiding conflicts, about segregating, properly segregating, customer funds. and guarding against fraud manipulation. matt: for more let's bring in tuongvy le. she is a former sec chief counsel as well. kailey leinz is with us too. let me ask about the comments we just listened to. is it possible for crypto firms to operate? could they come into compliance and still exist as a crypto firm? tuong vy: the short answer is no. just to give some context, coinbase has been in talks with the s

good thing longer-term for coinbase.di: you are still maintaining your confidence across crypto more broadly. are you still confident in that one million-dollar target for bitcoin? cathie: yes. the more uncertainty and volatility there is in the global economies, the more our confidence increases in bitcoin. one of the reasons is we have just been through an inflationary scare. we think it was very much supply chain driven, and bitcoin is a hedge against inflation. we also believe now that the bigger risk is deflation, not inflation. why would bitcoin do well in that circumstance? it would do well because it is an antidote to counterparty risk in the traditional financial system. on the bitcoin blockchain, everything is transparent. we can see all of the transactions, all of the activity. therefore, we have a much better understanding of how little counterparty risk there is in the blockchain world. shery: so what you are saying is that you expect those accusations on binance to actually prevail if you are expecting coin

coinbase does not list _ be treated like that. coinbase does not list any _ be treated like that.like that. coinbasej does not list any securities on our exchange today because we operate and apply and exacting listing process. a deep analysis of each asset to confirm that the asset is not a security. it is one reason that for example or two over 90% of the assets is considered for listing. but we do agree with the sec that offering digital asset securities should come to market sooner rather than later. we would like to be able to do this in the future. of course there need to be sensible rules in place to make sure that investors are protectors —— protected in the process. in the sec has decided to pursue those rules or establish the standards through litigation. we think that rule—making or lawmaking is a much more efficient and efficient process. —— efficient. well, you can catch the full interview with america's largest cryptocurrency exchange this weekend, on talking business with aaron heslehurst on bbc news. and that's it for this edition of asia business report. actually

for coinbase coming u.s. is the majority of its business. you going to bloomberg terminal this morning and read brilliant reporting and text columns, they frame this as life or death. there is one particularly excellent piece, which is what will ask brian armstrong about, which is two years ago, when coinbase filed with the sec, they pointed out in the filings -- i will read it. they pointed out that there is a high degree of uncertainty regarding the legality of its operations. it warned that regulators may disagree with the company's view that it is not covered by sec rules. as with the sec is saying both to coinbase and binance. you are paying registered securities. guy: that is the link. is it by accident that we have coinbase in the spotlight at the same time? it is come one after the other. you have to assume some connection. is there a connection? ed: 24 hours ago, we had gary gensler on the show. his commenting simple, which is that to the sec's mind, this is a classic reach and securities law. it just happens to be in a crypto conte

coinbase, the s.e.c. in its stock and we're going to get to first on camera reaction from coinbase's ceo next hour, right here on -- in studio in other business news, boeing, again, here, warning of a new defect on its 787 dreamliner plane saying it will delay deliveries of the wide bodied aircraft boeing says the issue is not related to flight safety how come it is never related to flight safety? but there is a defect. >> can't have the planes anyway. >> planes in service can continue operating okay and elon musk meeting with the prime minister of mongolia the virtual get together happened earlier this week a statement from the mongolian government said the two men discussed the possibility of a tesla battery factory in that country as well as the country's large supply of rare earth elements >>> all right, let's talk markets with our first guest of the hour he says the fed might skip a rate hike next week and that has historically been positive for stocks he also thinks ai is emerging as the biggest cat

when it comes to the coinbase issue, they are the largest platform in the us and the sec is basically you were operating as an exchange but you did not register as an exchange, and the charges against them were not a surprise because it is a publicly traded company, and we knew it was going to happen because they disclosed that earlier this year. when you look at biance, it is not a publicly traded company, and not a publicly traded company, and no one knew these charges were coming but we had an idea given what we heard about coinbase. the accusations are similar against binance, operating without redrow —— registering as an exchange or stop they also said they were artificially inflating trading volumes and failing to restrict customers from using their global platform and misleading investors about its market surveillance. goad about its market surveillance. good stuff. about its market surveillance. good stuff- thanks _ about its market surveillance. good stuff. thanks for _ about its market surveillance. good stuff. thanks for explaining that. we can talk more about this with the

. >>> up next, cracking down on crypto, coinbase coming under fire we have the details.hat's at stake when we take you inside the market zone. >>> and from chewy to gamestop, to bed, bath & and beyond, we look at ryan cohen do not miss making of the meme king it's tonight that premieres at 10:00 p.m. right here. that's 10:00 eastern right here on zcnbc "closing bell" right back. is it possible to protect my business from cyber threats? it is, with comcast business. helping every connected device stay protected. yours. your employees'. even... susan? -hers, too. safe. secure. and powered by the next generation 10g network. with comcast business, advanced security isn't just possible. it's happening. get started with fast speeds and advanced security for $49.99 a month for 12 months. plus ask how to get up to a $750 prepaid card with qualifying internet. we've got your back, road warriors. because we know you're picking up the pace, steering life at 10 and 2. you're hitting the road... and we're helping you get there with confidence. so skip the counter without missing a b

coinbase�*s chief legal officer says the current rules must be clearer.t out, coinbase has been engaged with our security exchange commission with for some time on these topics. we have sought regulatory clarity over whether certain types of crypto currencies or tokens are securities on the one hand or commodities on the other hand for some time post it as an issue that matters in the united states because we do not havejust one regulator, the securities and exchange commission at the federal but a second, a commodities futures trading commission as well. so the definitions matter and the labels matter and unfortunately even as we have gone through the process of listing as a public company, we have now come to realise that the sec, the market for securities regulation has changed course, has taken a very different view of its authority and it now claims essentially that all digital assets are securities other than perhaps bit coin. a very different perspective than they had when they allowed us to list in 2021. do you think that the sec have any valid po

well, i spoke to coinbase s chief legal officer, who told me the current rules just aren t clear.e has been engaged to a third securities and exchange commission for some time on these topics. we have sought regulatory clarity over whether certain types of crypto currencies or tokens are securities on the one hand or commodities on the other for some time. it is an issue that matters in the united states because we don'tjust have one regulator at the federal level, and commodity futures trading commission, as well. so the labels matter. unfortunately, evenif so the labels matter. unfortunately, even if we has gone through the process of listing is a public company, we have come to realise that the sec has changed course, has taken a very different view of its authority and now claims essentially that all digital assets are securities, other than perhaps bitcoin. this is a different perspective when they allowed us to lift list in 2021. d0 perspective when they allowed us to lift list in 2021.— lift list in 2021. do you think that the sec- -- _ lift list in 2021. do you think that

coinbase is a listed entity in the u.s.. we have seen them speaking about crypto tokens to be unregistered securities. we have to realize that that is a stance that they have been sticking to for several months since the collapse happened. this is an action that is strong. it comes after binance. we have to understand that the impact is wide-ranging. it is not just in the u.s., it is around the world. crypto tokens, crypto currencies are seeing a lot of commodities dry up. allegations are likely to be considered a serious concern for the success of crypto exchange us. especially light coinbase. a lot of the business revenues are from the u.s.. manus: it looks like brian johnson is ready to go all the way supreme court over this. he is taking it on. stock is down 12. thank you for joining us. the pga tour, an agreement of a shock merger the ends to your battle. the upstart slashed millions of dollars to lower players away from the pga. our reporter matthew. can you imagine rory mcelroy, woods, and others, what they may be fee

liz: he takes out the sling shot. >> he takes out the sling shot on coinbase. is what i know from inside of the securities industry. now you have to understand this, securities lawyers, they often worked at the sec and they have sources there around they know what is going on there. what they're telling me and ellie my producer plugged into the crypto world. she has become one of the best crypto reporters in the business, and right here at fox. that is pretty amazing. they're saying gary gensler for all intents and purposes wants to end crypto as a major industry. make a back water, maybe somewhere where there is a few things happening and he wants this thing done, you know that not just because we're reporting it, we're hearing from the lawyers, getting that from the sec itself. you know that by some of the comments he made today. he was asked, maybe on cnbc, i can't remember, what do you think of this coin? do we need the jewel digital coins? >> we already have digital coins, have euro or dollar which will be digitized. he is basically saying, crypto, digital

that have a demonstrated commitment to compliance. >> coinbase and its founder were accused on mondayrunning an illegal exchange in the u.s. and misleading investors. the u.s. has been tightening its grip on crypto platforms, particularly since the collapse of ftx in november last year. its founder, reid, has since been charged with multiple counts of fraud and conspiracy -- its founder, sam bankman-fried, has since been charged with multiple counts of fraud and conspiracy. >> coinbase shares listed on the nasdaq nosedived on the news, dropping as much as 20% at the open before recovering slightly. trading was fairly muted on the european stock markets today. london's ftse 100 rose by about .4%, partly due to to a week pound. economic growth is slowing down sharply this year with the risk of financial stress in emerging market economies intensifying. the lender expects global gdp who declined 2.1% this year. advanced economies will only grow by 0.7% while developing nations other than china, growth is set to slow to 2.9% from 4.1% last year. at financial conditions have dealt a "injur

and coinbase, which will result in a lot of litigation. that's going to be a cost to coinbase and its margins >> absolutely. kristina, thank you. kristina partsinevelos >>> after the break, an earnings beat for jm smucker. price hike the ceo joins us next. >>> mccormack upgrade at b of a. they go from 75 to 100 saying the cost outlook, the margin trajectory even more reasons to get constructive as the russell now at a three-month high. "squawk on the street" cties tethisonnu at morgan stanley, old school hard work meets bold new thinking. ♪♪ partnering to unlock new ideas, to create new legacies, to transform a company, industry, economy, generation. because grit and vision working in lockstep puts you on the path to your full potential. old school grit. new world ideas. morgan stanley. >>> welcome back we mentioned the kre, six-week high expected to close above the 50-day moving average for the third consecutive day. obviously, sara, year-to-date losses have been serious put together what they are saying about banking stress, fed emergenc

in coinbase's case the sec is focused on which of the cryptocurrencies coinbase lists on an exchange under the current regulatory framework as unregistered securities. here it is important to note there is a distinction between bitcoin and cryptocurrency. that was referenced by the sec and the guidance they provided before these actions and again with the actions taken. what they are looking at is there is no company or team in bitcoin that can control the supply or affect the rate of issuance. where that is not true in the cryptocurrencies base under the current regulatory framework, crypto may be considered an unregistered security and this is what the sec action against coinbase explores. caroline: do you think it is beneficial for the sector that we get some sort of regulation? regulations driven in the uae and hong kong and the u.k.. many feeling there is a void in the united states. even if it is not in any way affecting what bitcoin is or how in which it is processed, it cannot be a great -- it cannot serve adoption in general, either by corporate or by consumers in terms of w

coinbase also plummeted yesterday.here's coinbase yesterday after the securities and exchange commission sued the crypto exchange saying it was not a registered broker. take a look at how crypto is faring this morning after all of this. your thoughts on what these two stories tell us, coinbase and biif nance, adam. >> yeah. well, you know, what i made over the past couple weeks on my google, amazon, apple, all the stocks you and kenny were just talking about, i've lost on my coinbase position. it's been the hardest stock in the world to own. i keep a small 2% position, but i do own it so i'm vested. and the issue, maria, is that the sec from my if point of view keeps moving the goalposts on crypto and coinbase in particular. in other words, the lawsuit that came out yesterday effectively says the sec says to coinbase, well, we think you violated sec law because you're actually trading securities, and you haven't disclosed that you're trading securities, and there are all sorts of things you immediate to do as a securit

this time it's coinbase, the largest crypto trading platform in america.change commission or sec, wall street's main regulator, is suing coinbase for operating as an exchange without registering as one. it comes a day after the sec filed 13 charges against binance and its billionaire creator. our north america business correspondent samira hussain reports from new york. in these latest charges the sec said that coinbase acted as a broker exchange and clearing agency for investment that are subject to sec rules. but agency for investment that are subject to sec rules.— sub'ect to sec rules. but they did subject to sec rules. but they did so without _ subject to sec rules. but they did so without properly - did so without properly registering and that allowed the firm to escape oversight. the charges against coinbase were not a surprise as a publicly traded company it disclosed in march this year that the sec had notified it that the sec had notified it that these charges may be coming. in response, coyne bay said that the rules were not clear. testifying on

cathie wood at arc brought another chunk of coinbase on -- bought another chunk of coinbase on the dip up, a slump in saudi arabia. messi, we discuss. this is bloomberg. ♪ manus: football is the top game. we brought our sports reporter and producer from behind the counter to front and center. good morning. greg, expert in football, baseball, all things sport. what do you make of messi backtracking and going to miami? >> i think it is a huge deal. both in terms of the sport in america. for major league soccer, david beckham, one of the co-owners of the miami team. signing the most famous football player in the world, fresh off of a world cup victory his team won the local league. it is big for the sport and from a business perspective. the athletic reporting, there will be a deal with adidas. that could set a precedent for contracts going forward, not just in football but sports. manus: this is where longevity looks a little different from what he was offered in saudi arabia. we don't have full details but that tie up with adidas and apple, do you think this is a knock to saudi arabia?

of course, we saw yesterday a suit against rival exchange coinbase alleging it violated u.s. failing to register as a broker cnbc arjun kharpal joins us. they've had a chance to digest the news from binance, and then on top of it, we get the news from coinbase. >> yeah, look. there's a lot of caution toward crypto, companies telling us that some of their clients don't want to go near this after what's happened. we're looking at the future on this i'll focus on coinbase for a minute because it speaks to the broader issue. what happens next could define what happens with the broader u.s. there's a few things that could happen firstly they go to court with the s.e.c. and the s.e.c. wins and if that happens, there could be a number of results the first is that coinbase may have to look at a number of its businesses therefore, they'd have to register those coinbase can face billions of dollars worth of fines because the s.e.c. is seeing what it calls discouragement of what it calls ill-gotten gaines. effectively what inmeans is coinbase would have to pay back what they call allege

back, we've breaking news this securities and exchange commission reportedly suing coinbase cheryl casone copy csec suing binance sequoia in three different firms looks like trying to send a message getting tougher on china. cheryl: we just got the actual filing from the sec this is confirmed by that this lawsuit has been filed against coinbase, here is what is in the filing that, we looked at so far accusing coinbase of never registering as broker, this is manhattan federal court filing still going through right now says coinbase has deprived investors of disclosure protections from registration exposed to significant risk in particular, the filing references five stadiumable critico assets in the coin copy program quote from sec makes the program an investment contract and, therefore, a security they also say coinbase operated in prernld brokers since at least 2019 just breaking as you can see down 14 1/2% this is a big hit, big stock to watch, today, coinbase. headlines this morning a flight delayed over passenger deputy reports to drag passenger off techs bound flight watch the video.

in the simplest of terms, please explain why the sec is suing coinbase and what it alleges.arzad, host, "full disclosure": coinbase was operating as an exchange, something that has been regulated, in fact, intensely for the better part of 90 years. and if they want to do things, if they want to say, we operate outside the system, that's a world that they would like to occupy. that's their world view. but here you have the sec chair coming in and saying, actually, these should be regulated securities. they should be accompanied by offering statements, disclosures, various strings attached to the sec. and, clearly, that's anathema to the crypto world. you kind of want to exist in this gray area, in this wild, wild west, if you will. and i think between what happened yesterday and the announcement today, i think it's that the sec is finally putting regulatory contours around this. stephanie: yes, this is a $2 trillion industry that's been around for about 10 years. the sec chair, gary gensler, on cnbc this morning said, what coinbase is doing would be like if the new york stock

coinbase off 17, 18% >> coinbase was over 300 coinbase was a $300 stock. >> it was a $10.9 billion -- authorize a company like that to go public and here we are -- if you're an investor. >> i like hearing that from you. >>> "squawk on the street" is next and gary gensler next ♪ ♪ >>> good tuesday morning welcome to "squawk on the street." i'm carl consistent nia with jim cramer and david faber apple and coinbase at the top of the news flow. goldman cuts odds of a recession. another s&p 500 target hike from bemo apple getting into the headset game, looking to bring mixed reality into the mainframe the sec's crypto crackdown, bitcoin dropping to its lowest

they are going after binance, going after coinbase.hey went after paxos, one of the most regulated companies in the space, and one of the most kind of straight-laced companies in the space, and so it's making it difficult to be here in the u.s. and it's making it difficult for the overall echosystem because institutions, they don't like uncertainty and there's lots of uncertainty so we certainly have seen flows from institutions slow down into crypto. the only silver lining is and it's a small silver lining, is retail continues to buy. we see it on the aggregate platforms, we see it talking to offshore exchanges and so the bitcoin price is actually as i look, over 25-point 5,000. if you if you had told people that all this was going to happen and bitcoin would still be up on the year they would scratch their head. liz: yeah, but this issue with the sec. we just had tim draper who of course is a venture capitalist out on the west coast and he is a bitcoin bull. he specifically had very strong words for gensler and this warning, and then

there's a hope from industry and coinbase that actually this lawsuit might be a good thing.ng to court might be a good thing. it may help to set out what the precedent is and really what the rules around crypto would be so that's really what's going on at the moment in the industry. there's a lot of regulatory overhang it's going to be watching for implications that it could have for the future of crypt cryptoc cryptocurrencies. >> thanks for bringing us the latest twist in the crypto world. >>> venture capital it is known for saying software is eating the world is making an exception for ai in a 7-000 word mission if what he refers to as ai doomers, he believes nobody has no need to worry and he insists artificial intelligence may save the world augmenting human intelligence. concerns about ai have reduced compared to five years ago, that was according to research by boston capital group nick joins us now. thanks so much for being with us this morning fascinating survey results we've had a chance to look through this morning one of the most interesting things in my mind was

the agency has filed a lawsuit against coinbase, and late last night asking a judge to freeze all ofs one day after suing the exchange karen tso joins us to break it down the sec has made serious allegations against these companies. >> reporter: phillip, yes, good morning. the sec is going after two major crypto exchanges with twin lawsuits against binance and coinbase put being a cloud over whether these companies will be able to continue doing business in the united states. the regulator has asked the courts to freeze the assets of binance's u.s. subsidiary, alleging that they have a disregard for u.s. law an emergency order was filed late last night, forcing the repatriation of funds of customers on the binance crypto trading platform they are accused of squirrelling money to a separate company that has been able to invest stateside to trade on the company's unregulated site coinbase is accused of breaking u.s. regulations by operating as an unregistered broker, unreg unregistered clearinghouse c coinbase has accused the sec of adopting an enforce-only stance. it's been fairly ste

coinbase is saying, if you regulate us, it will kill the whole thing. be deregulated. what is a token? if it is not a commodity, it is a meaning of life question. are we an ephemeral asset, do we even exist? [laughter] in the case of the action you saw yesterday, the mysterious ceo says i do not have a headquarters, it is wherever i put my laptop. it is on brand for the crypto companies to say you do not understand us. but they are saying if you want to regulate us, give us a blueprint. so you see a game of chess between regulators and cryptos. stephanie: it does seem like smoke and mirrors to those of us who do not invest in crypto. he pointed out investors of all kind, especially amateur, invested a lot in crypto during the pandemic. have recent times showed they need the kind -- same kind of texans investors insecurities would want? roben: yes, if you saw the implosion of ftx last year, these things run. not necessarily apples to apples, but you could have a situation where your liquidity is not available. you could say i want for lacks the markets a

sonali: coinbase's stock has been flying in the face of these crackdowns. it is at more than 100% this year. at the same time, it is up today. this is more than a 100 page response that coinbase has filed against the s.e.c. saying it intends to ask to dismiss this case. one interesting part of this is the argument they make about the s.e.c. allowing for the ipo in the first place and going through the disclosure forms already. our bloomberg reporter makes a great point that a lot of experts wonder whether this is really about the s.e.c. repair disclosure more than identifying the legalities inside of coinbase's business. it is an interesting case and a bellwether for so much of this industry. it also comes at the same time as coinbase being listed as the custodian for blackrock's etf tied to bitcoin. really on two fronts. one is a tense story and the other is the hope that they will be approving the bitcoin etf sometime soon. ed: we are looking at shares. they want the suit thrown out. is this a real legal move or is this posturing? sonali: not only do you

going forward, yes, coinbase has more exposure to coinbase and ether. that can be seen as positive, since they weren't listed in that lawsuit but to your point, is everybody going to just turn around and take all of this discretionary income and throw it pack into crypto probably not >> what's the worst-case scenario here, as played out by the analysts can they get an injunction to prevent them from trading tokens >> that was in that cowen note many have said that that would be the worst-case scenario the injunction, which would stop the process. but the other thing, too, is the accord the alabama securities commission as well as nine other states put in a cease and desist yesterday. so pretty much coin base has 28, 27 days now to figure out their staking program, which is really just earning a revenue for holding certain cryptos and so that's something that they may lose a lot of revenues on, just in the next month or so. >> anecdotally, i know people have done the same thing and have had really bad experiences with coinbase relating to it lost money >

coinbase ceo said we are finally getting some clarity around crypto rules.ic. joining us now -- >> there is a pro thing there. >> actor ben mckenzie you know him from his star role as ryan at wood on the teen drama "the o.c." but also an outspoken cryptocurrency skeptic. his new book coming out. if i were betting based on watching your testimony and some things you said, you probably felt this was an inevitability some degree? >> yes. >> why? >> because the cryptocurrency market has heretofore been unregulated. cryptocurrencies are not currencies by any reasonable economic devin anything. they are more like securities. we have a history of this. before the 1930s and '20s we had, you know, hundreds if not thousands of unregistered unlicensed securities, no securities laws. the crash of 1929, led to the great depression and millions of americans lost money. it's ironic, but a century later we are effectively revisiting those times. these cryptocurrencies and there are some 20,000 of them, are securities or ought to be under american law. so we are sort of seei

coinbase shares plunging today after the s.e.c.e crypto exchange, alleging its prime br brokage exchange violated existing securities laws coinbase fell 9% in yesterday's session after the s.e.c. launched similar complaints abby about binance. guy, what -- these things seem untouchable. >> and they continue to be untouchable, for sure. now, this stock will probably bounce at some point over the next couple weeks and you get excited, the worst is over -- i don't think the worst is over. and jim has been talking about this for years, seemingly. he's been short the stock, if i'm wrong, i stand corrected, but rightly so if he is. there's more downside in these names. what it means for bitcoin, i'm not so sure, but bitcoin hasn't traded particularly well, either >> yeah, tim, what do you think? >> well, there's still not really any clear legal path for these companies to register these things as securities, and that's part of the issue here. i do think also coinbase had this hanging over them for some time, so, you know, once we underst

. >>> and a mystery trader on coinbase that could net someone millions of dollars. it is thursday, june 8th, 2023 you are watching "worldwide exchange" on cnbc. >>> good morning thethe -- good morning. welcome to "worldwide exchange." i'm frank holland. look at new york city. the worst smoke contamination day in years we will have the latest on the conditions and impact the dangerous conditions are having on one sector. >>> let's kickoff with the check of stock futures stocks hovering close to the highest level of august of 2022 despite they closed lower yesterday. this morning is muted and flat across the board nasdaq was lower a minute ago. you can see not a lot of movement overall we are checking the bond market. starting off with the benchmark 10-year treasury this moved 18 points higher since the debt limit deal. still an elevated yield with the 2-year treasury. some thought it would ease after the debt deal. the 2-year at 2.455. we are looking at energy we continue to watch energy after the opec cuts. wti is moving higher since saudi arabia decided to reduce p

. >> wall street's top regulator is suing coinbase which is america's largest crypto exchange.ell, it's been a busy couple of days for the sec and the crypto community. the latest the sec announcing they're suing coinbase alleging they were acting as an unregistered broker in exchange, essentially commingling a number of functions. the sec chair was on yesterday and the example he likened coinbase up to was saying what if new york stock exchange were also acting like a hedge fund. essentially what he's saying here is that coinbase had been flouting key securities laws and broke the law by not registering as a broker. we saw coinbase shares drop 9% after a 9% drop the day before after the sec also went after binance, another crypto currency exchange, and in that case they alleged they were mishandling customer funds. >> we announced the stunning news the pga tour is set to merge with the saudi backed liv. do you want to talk about the financial implications of this merger. >> yeah, such a shocking announcement as you mentioned. a lot of talk about it in the bercetche household y