emily: so can you tell us what gary gensler intends to do?ie: one important point is to recognize that director is not a monolith. as i said, there are financial use cases and where there are tokens that might be securities or touch on use cases, we are all for responsible innovation, we just want more regulatory clarity so we would like to hear what gary gensler plans to do but it's important to remember there is a whole part of the ecosystem that has nothing to do with sec regulations. emily: i know these are both andreessen horowitz companies, but do you think the blockchain is a threat companies like facebook? katie: pressure. the e -- for sure. the kyiv post of crypto is shifting power. i think that is -- the ethos of crypto is shifting power. i think that is why you heard mark zuckerberg talk about it. i don't know if you caught this news, coca-cola announced it would be doing nft. so this is not a fad. it is something we want to make sure is here to stay. emily: will facebook be the one to lead or will it be mark zuckerberg? katie: one

in a statement today, chair gary gensler says, "i worry that average investors may not realize they holdcompany rather than a china-based operating company." let's get more into this now. joining us is bloomberg's tom mackenzie and nathan dean, bloomberg intelligence senior analyst. nathan, i want to start on the comments from gary gensler, saying he's worried about investors, but this conveniently comes after a lot of action from the china side. is it fair to say this is a tit-for-tat responding to what china has done? nathan: i would say this is just an additional step in a long process that has been going on for at least the last two years now. scrutiny over variable interest entities, that is what we are talking about here. these are shell companies set up in the cayman islands so that when you invest in a firm like alibaba, you are investing in a shell company in the cayman as opposed to what is in china. so this scrutiny has been going on for the last year or so. it is increasing, and certainly with the statement this morning, it is just raising the stakes to another level. alix: t

gary gensler believes there needs to be more disclosure. maybe that's not the best way to do it.e it more expensive is going to eat into earning. and the underwriters i spoke to today, they are worried because they're getting some feedback from institutional investors that, hey, is this a problem? and maybe that's going to screw up the pricing. maybe they don't get their $35 billion valuation because of that. but anyway, that's one of the problems. they're not too worried about the meme stock people. why do the meme stock investors hate robinhood? they stopped trading early in the year, it angered a lot of them, and they've been essentially vowing to short the stock. again, they're not too worried about them shorting the stock. by the way, once you short a stock, you borrow it, you sell it, you replace it at a later date. yeah, who knows how much float's going to be out there. there's going to be hedge funds flipping the stock, so this could be a pretty interesting day on wednesday and thursday. we should point out that the analyst coverage on robinhood is really interesting. it'

tim, knowing sec chair gary gensler is angling to put or guardrails on this kind of stuff, how are investors supposed to feel comfortable here? >> wait a second -- [laughter] you've got -- but facebook's a trillion dollar business, and all of their revenue comes from advertising. would you say, oh, they're all at risk because their business all comes from one place? no, absolutely not. and order flow, that data's going to be very valuable to very many people for many, many moons to come. and and it allows robinhood to continue to provide free trading, and i think that's just fantastic. and, i mean, boy, if they were going to charge for trades, all of a sudden there'd be -- first, there'd be outrage. but -- liz: right, right. >> -- the company would make a hot more money. there's some other places robinhood can benefit from this amazing group of customers that they have. it's a huge customer force and a very exciting company. and i'm looking forward to seeing -- liz: yeah, it's -- right. it's a customer force that's used to a four-letter word, free, okay? but everyone else has followed robinh

few, though, anticipated this gray swan surprise attack by china, and now today sec commissioner gary gensler is announcing that all chinese companies seeking to list here in the will have to disclose to investors the regulatory risks coming out of beijing. on the cusp of august, let's get to the floor show traders. larry shover and tom hayes. tom, okay, crystal ball exercise here, indulge me. what unexpected event might we see in august, and what are you buying ahead of that? >> yeah, well, i think the big gray swan that everyone is looking at, liz, are the delta variant accelerating, although we saw it both in the u.k. and india after 45 and 50 days respectively, they seem like they might be peaking. but the other one that very few people are looking at is the possibility of an iran deal which would put a lot of new oil on the market, and that might rattle the credit market. so those are low probability events. we're still seeing earnings estimates going up materially from 213 to 217 for 2022 just this week alone. so we're generally positive, but we do want to get defensive with some health

one of the things we saw today was sec chair gary gensler coming out with a statement saying those recentctions by the chinese government, which includes enhanced security views, our relevant information to u.s. investors. the sec is essentially a disclosure agency. while they are not putting an edict saying no chinese companies can list in the united states, they are saying if they are things that u.s. investors need to know about risks in china that don't exist elsewhere, or how these companies are structured -- for example, a lot of them use shell companies because the government does not allow certain industries to have firms listed abroad or taken foreign money. if that is not clear to investors in the united states through the disclosure statement or registration statement, sec will not sign off on those going forward. what you have today is a clear response from the sec to what we have seen over the past several weeks and months happening in china. certainly, what we saw last year, here in the u.s., more scrutiny over the chinese, and whether they were complying with requirements h

way, did you notice that even though all the americans who participated in didi were shafted, gary gensler said nothing why not say i am going to subpoena goldman, morgan stanley. why not? why shouldn't they have subpoenaed why doesn't he just say listen, we want to freeze -- >> we want to know what you knew when you knew it and why you chose to do the offering if you did know there was a crackdown coming on didi. >> the narrative had been they're going to do it in hong k kong then it became there's so much demand in the united states, we're going to rush that now we're thinking is it rush because they knew china was going to crack down friday it could be crucial, there's 30 more deals in the pipe >> they're not coming anytime soon. >> don't you think there's a sucker born every minute >> they're not going to be able to list here, least nat least now, bite dance, owner of tiktok, expectation had been at some point it will try to monetize and become public eunice yoon has been great on this stuff i want to get her take on exactly what it is we're hearing because there's been, eunice, just s

mandates that as a security, deirdre bosa doesn't have subpoena power, gary gensler does.an interview. >> the idea that crypto is tied directionally to the s&p, right, it's either a risk asset or risk-offs asset if the market is looking through covid is bitcoin going to have another month up >> there's going to be either a waterloo or let's just say a great victory with what comes with this robinhood thing. because robinhood is going far more than usual to its customers. if robinhood opens down, do its customers buy more i think they sell. so robinhood could be the test of the real craziness in this market now, i think -- i talked with -- i talked with marc benioff last night about salesforce vlad's breaking the rules. he's going give people stop, will they hold their amc, hold their game stop, continue to buy these little $3 stocks yesterday there was a stock, it was only $30 million valuation, but it had 3 million shares and 100 million shares traded. what the heck is that? >> you know, you -- since we were talking about tech just a moment ago, you had benioff, marc beni

what you don't want is gary gensler to say, you know what? we're not in favor of companies that make money by order flow. i also was surprised at how much of the business is options, which, again, means thinly capitalized people going for gold in the 22 million that said, i've been in favor of robinhood from day one i had them on about five years ago. it's about democratization it's about getting new people in it is a great app. i know that they felt like that they did let people down during the gamestop era i don't mean to pick on goldman, but goldman's a very different kind of place. goldman is all sophisticated investors who get it they know exactly the deal you get 1/10 of it and buy it in the after market david, that's not what's happening here. >> no, it's not. in fact, i'm getting texts right now. they're begging us to take robinhood shares >> that's what i'm afraid of >> large allocator of capital. >> that's what i was afraid of >> i said what do they got left? and he said lots. >> don't do that, david. >> why that's reporting but by

there is what regulators might do, particularly fcc's, gary gensler.ation out there. the analysts that i work with at bloomberg intelligence who specialize in those areas are not too concerned. payment for order flow will definitely be a topic of conversation. but that does not mean it is going away. any changes would be over the intermediate term, nothing immediate. litigation is more of a headline risk. may result in some more fines, but we know the company has attacked -- the capital to hold up. matt: had a great conversation with bob sloan at as three partners earlier. he pointed out the disruptors often face these regulatory headwinds. certainly, that is what these kids are. disruptors coming, i believe from stanford. who controls his company now that it is public? david: that is the interesting part. we are talking about a company with two classes of shares. one vote for share -- one class in the stock that is trading now. and there is the second class with 10 votes to share. put them together, you're talking about 65% of the voting power in this

maybe gary gensler will say something about it. jon: coming up, abby joseph cohen of goldman sachs.y conversation on what feels like for many of you an inflection point in this market. 10-year gilts down a basis point. from new york, on tv and radio, this is bloomberg. ♪ ♪ [ "me and you" by barry louis polisar ] ♪ me and you just singing on the train ♪ ♪ me and you listening to the rain ♪ ♪ me and you we are the same ♪ ♪ me and you have all the fame we need ♪ ♪ indeed, you and me are we ♪ ♪ me and you singing in the park ♪ ♪ me and you, we're waiting for the dark ♪ ♪ jon: live from new york city, on tv and radio, here's the price action this wednesday morning. good morning. equity futures advancing a little more than 0.1%. you will notice where the performances come on the nasdaq 100, up 0.6%. the why, we need to go to the bond market for the why for everything at the moment. that is the epicenter of all the price action. start with nominal's. just south of 1.34% on tens. 40 basis points to go to the top of the year. i keep going back to the end of the first quarter. that is when yi

is so it's not something they can really overcome >> professor, theoretically if you're, say, gary genslernet yellen, do you have any ability to deem something a security and, therefore, have regulatory control over it and say what is in that fund, sir? >> well, we don't want to declare it a security. that's the mistake we made with money market funds. >> okay. >> so they -- they -- they don't know what to do right now. they're thinking there's -- the office of the comptroller of the currency has a charter they hand out, fintech charter which doesn't allow you to issue deposits or get a master account at the fed and various states have issued several -- several states have special charters they don't have the authority with respect to the states to do anything they could, i think, require these issuers to become regular banks and then treat them that way. >> professor, does it help bad guys, so to speak, if it stays the way it is for ransom wear? >> ransomware uses bitcoin as the payoff mechanism, which is kind of crazy because it has a very volatile price and at the end you have no right

the ultimate reasons for were china taking that action z >> yeah, i would pass that to my friend gary gensler. it's right over his home plate so, that's for him i would just say it's important that we have open capital acts and open capital markets and global rules that we all abide by but i don't know how to address that one because it's really for the s.e.c. >> okay. and lastly do you think that -- i have one minute left do you think that maybe more swift action on a digital currency for the fed, would that have a calming effect on the variety and the number of cryptocurrencies and stable coins that we see coming out wouldn't that be a more viable and reliable alternative than having all of these hundreds and perhaps a thousand different cryptocurrencies emerging? >> i think that may be the case, and i think that's one of the arguments that are offered in favor of digital currency that particularly you wouldn't need stable coins, you wouldn't need cryptocurrencies if you had a digital u.s. currency. i think that's one of the stronger arguments in its favor. >> that's great. madam chair i yi

that jay clayton was a lot easier on corporate executives, but we've got a new sheriff in town in gary genslere deal. i know you would say boards are manipulated by the ceo, but they still did approve the deal, i just don't understand why this is such a high crime, why it's just before a civil court and why it's not before an sec administrative judge? >> right. because i think they wanted to let this case go forward. keep in mind, what we learned in the deposition, etc., is elon musk said two key things. number one, solar city did not have financial problems. but what we learned in his deposition is the cfo said they couldn't raise debt right before the acquisition for the first time. the ceo of solar city sent elon musk an e-mail saying, look, we need cash, we're going to wait to do an acquisition. growing concerns especially from ernst and is young where they concluded that solar city did not have enough money to pay their own obligations -- >> all right. i got -- why isn't this guy indicted and in jail? >> well, i think that they wanted to let this case play out. keep in mind, elon musk and

talking about risks, the payment oh for order flow do you think it's a legitimate ily real risk that gary gensler could decide one day that this is not a good practice and he will do his best to curb it? and when you're a company getting 80% of revenues from that payment for order flow then it becomes a real issue >> perhaps you should. perhaps you shouldn't but the s.e.c. mandate is to shine the light. sunlight is the greatest disinfectionant database as long as there is disclosure the s.e.c. is happy with the practices. i think he may demand more disclosure or more thorough disclosure but i don't know -- gary is a really smart guy we all want best price but he says he may or may not have best price not getting the best price if you bought robinhood at 38. just saying >> i don't think the risk is losing payment for order flow. i think the risk here is that the markets aren't as exciting going forward. and usage drops off. payment for order flow has been around 200 years you called it different names. but there is always an element of market makers but the -- weiss makes the best point. weiss say

it's somewhat controversial to some people including sec chairman gary gensler.e third parties, and that's why they allow you to trade for free. gensler's signaled he wants more changes, maybe having to route your orders not to the citadels, that could impact the bottom line are. it settled a finra investigation and, again, it became profitable in 2020 with all this trading of people sitting home. they also mentioned that if the pandemic wanes and people have to go back to work, that could impact the bottom line. neil, back to you. i know that you're trading right now on your robinhood app as i'm talking, buy-sell, buy-sell, buy-sell. neil: you're incorrigible -- [laughter] actually, i'm making italian sausage. ing. >> it's the same thing. there's no difference between day trading and making italian sausage, trust me. neil: there you go. thank you, my friend. charlie gasparino. let's take a quick peek at the stock market here. the dow closing in on a record, the s&p is in record or for story. all buoyed by this unexpectedly good news on the employment front here.

i mentioned these, i had a thing last night how full gary gensler's played it.f these things out. >> another volatile stock, virgin galactic space. yesterday, of course, watched it open up on the success of the mission, and then down after they announced plan to sell half a billion worth of stock the stock following those losses yesterday is down another, let's call it 5% there you see virgin galactic. let's not forget, this wan a one-time spac way back remember ten. still a very strong performer. one of the early companies to, of the wave, certainly. >> got too excited. >> despac. >> and you know it was a woodstock. >> yes. yes. it was. >> very much so. >> arc. >> yeah. >> geez, they missed the q they missed the q. >> and a silver platter. >> can you arrange a sound board where we get to trigger our own graphics from here when that happens. >> a blue plate special. put them ahead of alfredo garcia. >> you mentioned amc, though imex, not the same business model almost at a five-month low, jim. >> wow amazing, been on every day hasn't helped. told a compelling st

. >> right, you're unhappy with the move of the memes to even -- >> i want gary gensler. >> union pacific's down five because suddenly we discovered that our arbitrary and capricious president -- why doesn't he just tweet it should be lower. >> we haven't even seen an executive order yet. >> this is "the wall street jou journal", what do you think they made it up >> i don't think they made it up we've got to see they refer to it as a sweeping executive order. we'll see. >> does it include the b and o and redding? >> i don't know. i get it, though that's a monopoly reference. you can't break up the rails what are you going to tell them, listen the interstate railroad commission, they could not force prices down. you can't tell norfolk southern you charge what you're charging because it's america. >> it's america. >> it's america. >> it's pronounced america >> america >> did i get it right? kate winslet pronounce it is like me and you tell me that i'm wrong? >> no, i won't. >> because she's the queen. >> she's english, too, did you know that? >> yeah, she is. >> american express, okay, one of

has been more questions on stablecoins at large from people like janet yellen to jay powell to gary genslerng for more regulation of stablecoins. i sat down with two tether executives in a rare mainstream interview last week to get more answers on everything from what makes up their commercial paper to when we might finally see an audit, something that they have promised for years have a listen to part of it. >> just to follow up on the audit, i know that you said you would be thrilled to be the first sort of crypto company in stablecoin to go through an audit. to you have a date in mind >> no. we are reaching back a couple of years for the financial audit and that is in process. >> do you think that's years away, months away? any clues? >> months, not years. >> only months >> yes, we think so. >> so, guys, we do have something to point to, to at least hold their feet to the fire, but like i said they have been promising an audit for years. they switched account epts they do it through a cayman islands firm whereas it used to be a new york-based accountant they said things like overwhelming

gary gensler, the current sec chair has raised issues saying well is there enough transparency, do weent, that potential crackdown from the sec that's the feedback that the underwriters are getting from the institutional investors they are worried so that could hurt the pricing and i think that's one of the threats to the ipo from what i understand. one of the positive things for the ipo is they are going to be issuing a lot of shares to their regular customers, to robinhood customers themselves that aren't pissed off at the company like the amc apes and the meme stock investors. they have pretty loyal customers and they could go and buy the stock, so they think they are going to get decent retail demand from their own customers, and they are going to get some institutions will buy this , because robinhood is, if you look at the revenues they aren't quite profitable yet. they have to throw a lot of money into research, development , marketing, and of course, making sure their pipes are working right, so they don't have another shutdown like they did earlier in the year, but the big th

>> you've taken a look at it let's do this deguys you've gotten on gary gensler, the s.e.c.tely there is direct response to my 17 different attacks on him. >> our viewers may remember it was only last week they cut the price they were paying for this momentous basically in half, satellite company, but the s.e.c. has charged them and come after them in a big way. >> ever. >> you've got the complaint here >> it's brilliant. the complaint's just nothing but brilliance. >> i've got the press release. >> i got the complaint i read the complaint michael >> here's the complaint. we're just holding it up for you so you can see it. >> minutes to the proceeding. >> let me give you the specifics on it. still trading above 10 >> that's crazy. >> here's the quote from gensler. the case -- well, let me get to the charges. they allege the company misled investors. let's read the quote first, the case illustrates the risk inherent to spac transactions as those who stand to earn significant profits from a spac merger may conduct inadequate due diligence and mislead investors. that's the key

the first is a "wall street journal" report that the sec chair gary gensler told house lawmakers thateople's bank of china ordering a software in the country to suspend operations because they were suspected of being involved in trading with cryptos. like i said, you have the regulatory headwinds. you have the crackdown story, moving the crypto market today. we'll see if we can find support for bitcoin at 35 instead of 30. ashley: exactly. we'll find out. good stuff. also show me didi. that is the chinese ride-hailing service, tanking this morning, down 22%. is this fallout from china's crackdown? lauren: absolutely. so they ordered that didi's app be removed from the app stores. what did the underwriters -- this is a company that just ipo'd two weeks ago, ashley, what did they know about this at the time, the crackdown in china? the journal is reporting that the chinese regulates suggested didi delay the ipo. regulators are not just looking at didi. they announced a review of full truck alliance and camsun. which is online recruiter. if you're doing business here in the u.s. do you h

senator warren gave gary gensler a july 20 eighth deadline.how to regulate this market or else and the letters a prelude to more concrete action being taken by congress, make sure investors are not vulnerable, to dangers in this highly opaque and volatile market. we will see what congress does. ashley: thank you very much. let's bring in kenny. are there any cryptos that are safer than others? >> that story is right. there needs to be regulation around it. doesn't mean i am anti-crypto, bitcoin and the theory him are the ones i like. if i am focusing on what i think is long-term, remember, it is not occur in see the way bitcoin is, i'm putting most of my bed in the roads and highways. ashley: have another cup of coffee, we appreciate all your concerns out there. let's look at big tech, president biden will be signing an executive order cracking down on big tech business practices. you've been digging into this. >> directing federal agencies, where big tech cycles competition, mergers, the administration boxed out the competition from it and co

>> i would pass that to my friend, gary gensler. it's right over his home plate for him. i would say, it's important that we have open capital accounts and open capital markets, and global rules we all abide by. i don't know how to address that one, because it's really for the sec. >> lastly, i have one minute left, do you think that may be swift action on digital currency for the fed, would that have a calming effect on the variety and the number of cryptocurrencies and stable coins that we see coming out? wouldn't that be a more viable alternative than having all of these hundreds, perhaps 1000 different of cryptocurrencies and coins we see coming out. wouldn't that me -- with that be a more reliable alternative then these thousands of front cryptocurrencies -- different cryptocurrencies emerging? chair powell: i think that is the case and that is one of the arguments being offered in favor of a digital currency. you would not need cryptocurrencies if you had a digital is one of the stronger >> manager, i >> the gentleman from ohio -- digital currency is one of the stro

nominees including janet yellen, pete buttigieg, and gary gensler. but based on their past experience and expressed behavior, tracy stone-manning and david chipman have disqualified themselves and are direct contradictions to the bipartisanship and unity that president biden called for and promised in his inaugural address. if these extremist nominees are confirmed, they will direct their respective agencies towards ends that are actively and openly hostile to the wyoming way of life that i am here in washington to support and defend. i call on president biden to withdraw these names and instead send us nominees for these positions who better reflect the bipartisan reputation the president spent decades cultivating in this senate. if the president does not withdraw these nominees, i strongly urge my colleagues to vote to reject them. thank you, mr. president. and i yield the floor. mr. boozman: mr. president? the presiding officer: the senior senator from arkansas booze thank you. it's an honor to be with my friend and colleague as we rise to honor p