come from crypto. now you've told me before in the past that signature, however, is actually been known for it's new york city real estate division. so did crypto ultimately add value to the bank's net portfolios, or did it disrupt the business model a little too much, especially given that long time you now retired congressman from boston. barney frank, whose signature legislation, the pun intended, there was the dodd frank act after the 2008 financial crisis that was meant to scrutinize financial institution. barney frank sat on the board of signature bank the last few years. up until it folded, he actually took a veiled swipe at crypto recently saying that when dodd frank was enacted, crypto didn't exist. so was he implying the crypto is what brought down signature bank? so there was a lengthy interview done with barney frank recently about the downfall a secretary. and he really can't say a lot at this point because signature being closed was really is the only instance thus far. not that we've had

was held that crypto custodians or crypto exchanges. so signature really didn't do much by way of, you know, supporting the crypt the world. it took for the fact that bank, those enterprises, but it seems that the feds had been cracking down and there's this monica going around of choke point 2 point oh, meaning the federal government is trying to choke the crypto ecosystem from any sort of greek breadth one of those breaths that it needs to take is having money move, you can't get cash or us dollars into crypto. ready without it back in the middle. and so the defense sent a very serious message to banks around the country. you know that you better beware of being involved or helping aiding a betting the crypto ecosystem. and it's really unfortunate because it's not a criminal, per se, about helping crypto investment firms crypto investment firms are not operating illegally. you know, the question is still out whether they are buying crypto currencies that are securities and therefore need to be registered. and maybe that in itself is i

crypto firms have slashed jobs. as crypto values crashed last year platforms began collapsing, creating losses across the rest of the crypto ecosystem, thousands of crypto firms that are left had to halt customer withdrawals freezing people out from their own money. crypto contagion did not affect the broader financial system thank god, we saw glances of the damage it could have done if crypto migrated into the banking system they have full of banks with close ties to the could to the could do industry needed liquidity lifelines after they sufferedof the products they we. these crypto firms filed bankruptcy the are overleveraged over capitalized with customers money not the money of millions of americans a year ago i said as chair of this committee crypto companies are looking to make big profits the 50 more -- 50 formica dollars that brought in celebrities to make it sound exciting. the edits left a few things out. they didn't mention fraud, scams, out right left. they didn't tell you about the fees and they didn't

it could change the future of crypto, as we know it f. the x became on of the largest crypto currency in the world, daddy's to make a marketing deals with the life of steve curry and tom brady. not with the company sought insolvency, a loss of faith from customers. other rivals like coin base and bitcoin are beginning to worry. it's sold, they're worth full drastically in the weeks after f d x collapse. but what led people to invest in this alternative cor, insist to begin with? is it does that people are looking to get in the ground floor of the next big thing . is it just for the rich with extra money to spend? looking for the hud new way to burnett crypt occurrences begin in popularity as an untraceable on taxable and regulated form of currency exchange. unfortunately, with the fall f d eggs, this has led to investigation that could actually enact new regulations on these type of currencies, causing crypto to lose it's initial appeal. some back my freight is facing a total of 12 charges as b f, as he is refer us, is currently awaiting

them about crypto. the the reason for being and crypto is because they want to separate themselves from lending institutions, banking institutions, hell establishment institutions in general. and they also don't want to feel like they're tied to the government who can at any time, know exactly what they're doing and know how much money they have and what they're doing. you know, let's face it, some people are doing this because, you know, they, they'd like to pay fewer taxes and that's a part of the game as well. so essentially, what bank my friend was doing was the opposite of that. i mean, he had an exchange, right, an exchange that in essence was acting like a bank and he took people's money deposits and then spent it without them knowing that he was doing so. in fact, what he did was worse than what a bank does. ok, so let's, let's back up a little bit and unpack it a little bit further. ok, so the exchange was actually a place where investors could go ahead and invest in futures contracts ok on the

will this also lead to the end of other crypto currencies? as we know, it was a national correspond roxan us a lot of breaks down the craze of crypto roxanna. scotty, when c e o sam batman fried, filed bankruptcy, leading to the collapse of f t x. this jump started many investigations, including from the securities and exchange commission, the department of justice and the commodity futures trading commission. while batman treat made multiple, appearing this after his fall from f t x in the media, he never discussed if he's liable for the company's failures or loss obedience. it wasn't until the f d x founder was arrested in the bahamas. he could no longer evade questioning. bahamas prime minister philip davis tweeted a press statement saying, while the united states is pursuing criminal charges against a b, it individually the, the how much will continue its own regulatory on criminal investigation into the collapse of s t x. while that continued cooperation of its low enforcement and regulatory partners in the united states and elsewhere, t

where regulators are suing crypto currency exchange, giant finance, which they said ran a legal crypto currency based trades with us investors and a sham compliance program. company founder john peng, joe and former chief compliance officer, samuel lim. we're also named in the suit us government accuses by nancy encouraging you as customers to open accounts without verifying their identity and allowing them to communicate with the company, the messenger service that then deleted all chat records. in a written statement, finance said the suit was disappointing, but promised to continue to work with regulators that day as a managing editor at coin desk, which covers the crypto currency industry. nick, american regulators going after the world's largest crypto exchange and it's founder as someone who covers this industry. how surprised are you? hey, thanks for having me. i would say this has been telegraphed for a while now. we've known even finance officials have acknowledged that us regulators would soon be taking action against the company they expected to find to settle these charges.

i think almost more than 9000 different crypto options available. and do you think this makes it currency like you mentioned? that's one of the reasons why we can have fraud and the lack of accountability. well, so we should distinguish between i think 2 major types of crypto currencies. one would, i would call generally called variable rate, or variable interest script or currencies like bitcoin for example, or a theory i'm, that their value goes up and down. it's not paid to anything else other than its own, supposedly intrinsic value. that looks like very much like an investment to me, whether it's a security or commodity is it is the source of active debate. but certainly one should think that the fcc with regard to crypto currencies that should be viewed as security as and the c, f t. c, with regard to those that should be viewed as commodities should be actively involved. both with issuers and exchanges to make sure that the traditional investment investment protections that we are familiar with for security and commodities are applied. and if

yeah, i'm talking crypto because it seems the whole world continues to talk crypto. so what they say is that this fella, sam, bank mon fried, is an example of something that was caused by the crypto currency revolution. right? they say the whole block chain, crypto movement now has to be changed to, has to be regulated, has to be controlled. they see crypto needs to operate more in line with how, for example, banks operate and other equity and financial institutions operate. and by the way, to all 3 of those assertions, most if not many or many, if not most in the non establishment community would say no, no, and held though, on the right. are they right? let's look at this. by examining sam bank men freed himself for as his buddies in the media establishment and politics. mostly democrats, by the way, call him s b f. s b a for the record. i'm gonna share something with you personal here. now, when, when someone has been found to have committed despicable acts, my rule is simple. you don't call that guy by his initials, you know, just like i would never call james or

hong kong has been granting licenses to crypto companies and they decide to allow crypto etf for crypto futures. they are reviewing bitcoin and ethereum. they decided to offer $101 million of green bonds as digital tokens. this is a global first. the pitch for hong kong is unlike places in other parts of the world, specifically the united states, their regulations will be clear. they also want to send a positive signal they want the industry to be here. another bonus that companies see is hong kong could be an approved way to tap into the mainland demand for crypto. it has been banned or completely shutdown here after beijing took action against the industry. this is what one crypto player told me about that. >> at the end of the day, xi jinping put policy in the agenda. there are questions around what happens with crypto in the sense we see in the rest of the world. i think, you know, people in china are purchasing crypto and investing in the space. they are buying nfcs. they don't do it through approved mechanism which hong kong would provide. >> reporter: hong kong said 80 companies

to get clear crypto regulation.he ftx situation created a little bit of a delay in the legislation that i was hoping was going to be getting passed the next quarter or so, but i think within 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 known for giving money to politicians as campaign contributions and lobbying members directly on capitol hill. do you go to capitol hill very much to lobby directly for legislation of one type or another, or are you very involved in political contributions? brian: so, i go to d.c. historically, i have gone maybe two or three times a year. i imagine that may be more frequent in the next year or two. um, we have made small donations to certain candidates that are pro-crypto. but just standard stuff like $5800 or these basic minimums. we have never made any kind of donations on the scale sam bankman-fried was doing through these large pacs. part of it is how the game is played. you need to sort of make

ferdy us crypto industry. if coin base is targeted for listing certain tokens for offering is taking service and offering as well. service then, you know, these are the actions that most exchanges in the us also undertake. so it could be the beginning of, you know, a wave of reports and actions against most of those changes that are currently operating in the us. and it's going to be as loses lawsuit if it goes to trial and loses against, you know, in court lives as an appeal. then that would be a very, very, i was a alarming signal for utter crypto exchanges in the us. it could drive users and traders to decentralize the changes or to utter offshore platforms in an effort to try and you know, continue acquisition market which would still probably result in lower participation. and, you know, arise and let's see, sketch your platforms to operate on. all this comes in moment, criptos actually profiting from the recent banking crisis to these regulatory actions and announcement that we're seeing right now. does

we certainly are not subsidizing crypto. because of the mining operations, are so stable in the usage of electricity actually helps, systemically, for those costs that we do socialize. to bring the cost down for every user. >> because you have that consistent demand, you can keep it relatively other peoples rates relatively lower. is that fair? >> consistent use it 24/7 can actually be the most efficient use of electric infrastructure. >> great, thank you. mr. carper? >> mister chairman. you've been in the senate less than three months he's already chairing committees. overthrowing and had markey. think you for letting me work into the lineup. mr. altenburg, and miss, is it kelles? >> correct, it is kelles. >> thank you. i want to start off by thanking senator markey, our chair, for today's hearing on his legislation that seeks to shine light on the impacts on cryptocurrency. on our environment. i held the first oversight hearing on congress in cryptocurrency almost ten years ago. november 18th, 2013 i was privileged to be c

w. travel extremely worth a visit with another crypto crisis, hips coined prices. crypto companies are cutting business with silver gate after the crypto under warned it's future is in jeopardy. what's it mean for digital currency is that we'll find out also on the show german sir olaf schultz is in the us to have a word with biden, about a massive package of green subsidies that could hurt investments in europe. and global leaders are pouring billions into saving one of the biggest economies, the world's oceans, expert gift price tag. i'm christy, platinum, berlin, back with a another d w business show shares in silver gate. a major crypto currency lender have tumbled more than 50 percent after the bank warned of a possible collapse. silver gates woes are the latest to be triggered by the bankruptcy of f. t x, a crypto exchange whose former seo is accused of fraud. f d x says billions of funds are still on accounted for, and that includes money lent to be exchanged by silver gate. the california base bank has delayed its annual report and announced it would sell more of its assets in

so forget was the same way for crypto -- silver gate was the same way for crypto.de it very susceptible to a moment like this. there are concerns around contagion. people are afraid this could happen elsewhere. the key thing driving it is interest rates, the fact that the asset side of the balance sheet has been underwater because they bought these bonds for less than they are worth currently. if they have to sell them, they will realize losses. that has been driving this crisis at this point, at least among a few banking institutions in california. everyone is trying to sort out what comes next. i don't want to prognosticate. caroline: max, he has been so thorough on this story. there have been ripple effects. let's dig into the impact on startups, on the venture community in particular. a well-known managing partner and cofounder focusing on early-stage tech startups, you taught at cornell tech, but prolific work with tech stars. what have you been advising your portfolio companies this day? >> it has been incredible chaos. my phone has been blowing up. we have 2

the world of crypto. implications of silver gate unwinding and what sv be -- svb talks about in risk sentiment around technology. talk about the implications about what now feels like traditional finance meets decentralized finance. ed: certainly sentiment was depressed all day long. bitcoin is an example. because of silver gate. there is also stuff out there about what the new york attorney general is looking at. here are the concerns. svb down 60%. so brigade capital down 42%. they concern is that the impact of higher rates hit the frothy's corners of the market. were those? crypto and technologies. the story with svb in particular is their clients are technology companies, startups facing cash burn. they don't need cash in the bank. they needed at hand. they are making withdrawals, deposit outflows. silica and volley banks have to react to plug the gap. let's look at the terminal chart and the drama. the biggest drop on record for this stock, the lowest levels since september 2016. let's get more detai

maria: lee carter. >> the polling suggests that the trust in crypto or people's faith in crypto as anlly low, only 8% of folks believe that this is a viable asset class for their investments. what do you say to them, what is one thing you wish they would understand to change their perceptions? >> yeah. you know, crypto's been declared dead by the mainstream media, i think it's 458 times. the system is anti-fragile. i think the number is going up. 8% sounds like a little. a few years ago it was 4% or 2%. i think if you step back and ask yourself, look, crypto hasn't gone away in the last 14 years. where do you think we will be not next week, not next month, but five years from now. i think if you give people that kind of time frame, they start to see maybe i should think about this, not as a big part of my portfolio but a little insurance in there in case things go wrong elsewhere. i think that's what we see from clients we talk to, from professional investors and i think that trend is growing. maria: matt, where do you think it will be in five years? >> i think you're going to see six

once again, the difference between moneyçó crypto and tech crypto. >> joe, thank you. ethereum. thank you. >> thank you, arjun. let's look at u.s.lp futures. they have been in the greene1 a bouncing up t o bit's hard to run a business on your own. make it easier on yourself. with shopify, you can have everything you need to streamline your shipping, returns, and product storage, so you can focus on growing your business. because when we work together, the future is bright. it doesn't have to be lonely at the top. join the millions at finding success on their own terms. start your journey with a free trial today. when we started selling my health products online our shipping process was painfully slow. then we found shipstation. now we're shipping out orders 5 times faster and we're saving a ton. go to shipstation.com /tv and get 2 months free. >>> the federal reserve lifted intereste1e1 rates by 25 basis points bringing thee1 targete1 from 4.75% toe1 5%. it is the 11th hike since march of 2022. itb]ould be the last as the fed indicated it is on the verge of the pause a

ed: plus what the banking followed means for crypto. caroline: and the latest on job cuts in the world of technology, amazon announces it is laying off an additional 9000 employees, that in more coming up. let's get the read of risk sentiment, if you are looking at the nasdaq, technology outperformed last week, a stellar week on the nasdaq 100, today we digest what has happened over the weekend in terms of crisis and amazon. the bank index on the higher side apart from a name you are going to drill into. people are getting away from some of the haven bids, technology seen as a haven. what has been a haven over the last week, the bid for bitcoin, up almost 14% over the last few trading days and to gay -- today we do see they 28,000 level. ed: that momentum in the crypto space trance into equity market. this is lower 2.5%, but has since given up gains. bedforms markedly higher -- bitcoin markedly higher, we are trying to see how this will go. you see underperformance in mega caps, they had a long -- a strong week last week. some mega cap

crypto is not going to be banned.t's come into play with institutions like blackrock, bny melon recently. to your point, there is going to be a concerted investment that needs to go in the space to actually set up the clean regulatory environment and what that framework looks like but on the flip side, if we don't actually put that investment in today, we're just going to see ourselves losing out on the next wave of innovation that's effectively going to move offshore so it depends on what the tradeoff is, short-term versus long-term here. maria: we will leave it there. anthony, great to get your insight, thank you. we will see you soon. the next hour of "mornings with maria" begins right now. ♪ maria: and good monday morning, is time for the word on wall street. joining me is michael lee strategy founder, michael lee and chief market strategist, katherine rooney vera. great to see you. katherine, with a quiet market,

they were just banking crypto.ven the new york financial services department, the head of that acknowledged crypto had nothing to do with signature. barney frank, former chair of the house finance is ass committee, appears this is attack on crypto. two sources have told reuters that anybody who buys signature has to agree they will not bank crypto. so it is really interesting, neil. more questions to be answered. if you look at the fed which just announced this summer will release, going to kick off the fed now program which is a payment system that would settle payments within seconds, it is interesting, is our government competing with the private sector right now? are these banks banking crypto are a target of their angst? neil: that is a fascinating subset to the story. might be the story. interesting. congressman, thank you very much. good seeing you again. congressman tom emmer, minnesota republican, house majority whip. big cheese in debates going forward. meantime the markets are doing just fine right now.

what it means for the rest of crypto. ed: googles vp for trust and safety talks about the guardrails needed for generative ai. caroline: the runway ceo talks about how the fashion rental is leaning into a cost-conscious consumer. first from the micro to the macro, we see a little more of a mood shift. howell once again, the chair of the federal reserve, up on capitol hill, did not do much to alleviate anxiety. we did manage to see the nasdaq tech heavy benchmark recovering some of yesterday's selloff. the semiconductor index outperforming up 2.7%. we are true -- still trying to fight off a borrowing on the rise. on the front end of the curve, the two-year, well above 5%. inverted yield curve, we are seeing other areas of risk assets on the downside. we are seeing crypto once again under pressure. dollar on the rise as interest rates have come. but crypto under pressure for a host of different contagion issues that are facing them at the moment. from that macro picture, i know you will delve into one particular name. ed: p

digging deep into crypto. from new york, this is bloomberg. caroline: let's talk crypto now.ve already talked about block earlier in the show. let's turn to coinbase, also under pressure. they received a notice from the sac -- sec on enforcement actions coming against it. shares coming off by another 20%. sonali basak helped break the news with analysts. basically one third of net revenue from coinbase could be affected. sonali: we have seen sec target different companies for different products but this seems to be encompassing multiple parts of the business at the same time. wallets, staking as service. you have coinbase executives fighting back and saying that the sec has been neither fair nor reasonable throughout the process. we have seen the talk -- tone change over the last year. things are escalating and coming to a head when it comes to different parts of the business. as you can see the stock is reacting to the news. this is an intent to take action but no action yet. what's interesting here is we don't know where this goes the sec perspective but coinbase says they

ai, crypto, as a problem, solution, i think that's terrific.oline: having been gcm for a fund and gone on to work, she's had real success in some of the companies that she's built and invested in. have to remember 80% led by women so loud and proud about it if you want to get media trained, and understand a little bit more. ed: come to us and tell us about that and people talk to them. coming up a new tiktok trend about the rising costs of dating wrecking at millions of years. that's next. this is bloomberg. ♪ caroline: representative for cyclic on family now he's working to broaden u.s. technology focus of san francisco. a key player in the passage of the chips act now he has a $2 trillion pitch to revitalize u.s. manufacturing in what he calls economic patriotism. >> new economic patriotism means at the private sector can work with universities, community colleges, labor, government to have a common purpose of investing in america's production capability. we need to look at regions that have been decimated, say what other assets, how can we h