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 sec for a long time to come up with a model of registration that would work for a crypto trading platform. they filed petitions for rulemaking, they engaged in countless internal discussions with staff, they came up with their own registration model to try to work with sec to come up with something both sides could agree to. because the existing securities laws, the existing

colleagues will have more with gary gensler at 15:00 cet. >>> the s&p 500 closes lower having hit theighest intraday level since august. >>> and manufacturing comes in soft in germany and spain and christine lagarde says it is still too early to call a peak in price growth. >> underlining inflationary pressures remain high. although some are showing signs of moderation, there is no clear evidence that underlying inflation has peaked >>> good morning welcome to "street signs." apple revealed the headset after years of speculation the first hardware launch in almost a decade. it will cost $3,500 when it is released next year the company touted the use in gaming and working shares fell from earlier in the morning. ceo tim cook hailed the potential of the technology. >> this is the day that is years in the making. one that i've been looking forward to i believe that augmented reality is a profound technology blending digital content with the real world can unlock experiences like nothing we've ever seen. so, today, i'm excited to announce an entirely new a.r. platform with a revolutionary

i will tell you that gary gensler believes this is a big story on crypto. you will see a lot more.o the uncertainty in the market. how many other cryptos are going to be declared securities? well ethereum be declared a security? could bitcoin? i don't think bitcoin will because gary gensler said publicly that is the only one he thinks is a security. if you have others attacked by the sec with enforcement action this redown to impact on negatively on prices of bitcoin as well. you get a flight to quality. if you're in crypto this is a pretty perilous time. keep an eye going on what is going on enforcementwise. keep watching claman countydown. that is what we do well here. liz: you sure do. bitcoin down 6%. he was the guy decided to go to twitter i don't like what is happening at ftx. now he is accused of commingling, the whole thing is a little worrisome. charlie, thank thank you very mh charlie gasparino. closing bell four minutes away. apple looked like it was on track for a record close. sir pro, the new headset babe blurred investor love for apple. you have the big unveil here.

gary gensler from what i understand is unleashing the dogs of war on crypto right now.nt division, take their heads off, leave them on spikes. i'm telling you, that is what people are telling me. liz: pleasant image, charlie, thank you. closing bell four minutes away. s&p 500 needs 18 point at the moment to exit bear market territory right now. not there it is. wait a minute. what is it up? i can't even see. okay. right, so it's almost 20% up off the floor. all right. crypto has certainly seen its fair share of boom and bust activity since its a.i. related stocks are certainly in a boom right now. the global x robotics fund, ticker symbol. bots, etf is up 40% year-to-date. we were just talking about the frothiness of a.i. but jason katz of ubs said it is as real as rain. that is his quote. our next guest says the exuberance around artificial intelligence is actually becoming irrational, worrisome, he is selling what he has, going into other things. joining me we have bennett private wealth management chief investment officer, michael landsburg. your case against a.i. as

chair, gary gensler, who will explain what he's doing and why. >> meantime, we brought you this news last hour a lot of people focused on what it means across, not just the finance industry, but maybe business writ large. business capital firm sequoia saying it is splitting up into three separate firms the u.s. and european venture business will be referred to now as sequoia capital sequoia's china operations will be another business and the india and southeast asia arm will be a third recent macro and geopolitical issues like china's crackdown on its domestic tech sector have made venture capital fund-raising more difficult. the sequoia split is scheduled to happen no later than march 31st of last year. just a reminder for those viewers who may have been confused, if they were, we are not talking about the sequoia fund, which is a publicly traded vehicle. this is the private equity venture capital firm, famous from silicon valley that's done a lot of business in china >>> inflows to tech stocks, as tech stock funds hitting $1.3 billion last week

like they were bigger than anyone realized so there you go. >> with that, let's get to sec chair gary genslerns us on a first on cnbc interview. chairman gensler, great to have you back welcome. >> good to be with you, sir. >> we've had you on several times and tried to get from you a sense of timing when there would be more clarity regarding this space it feels like now is the moment. >> look, i think there's been clarity for years. the investing public has the benefit of the u.s. securities laws crypto should be no different, and these platforms, these intermediaries need to come into compliance and protect the investing public >> of the cases we're talking about, do you want to take them one by one which one is more important in your view? >> you're leading this interview. i'll follow you where you are. let me say this to the investing public these trading platforms, they call themselves exchanges, are commingling a number of functions which in traditional finance we don't see the new york stock exchange also operating a hedge fund, making markets, and as we alleged in binance, having a si

alix: that goes to dragons are's point -- gary gensler's point. rules are clear.y tried -- they were there. coming up, european natural gas, futures down today. but they were up 20% yesterday. you also have the ecb governor talking about how energy and inflation are going to be coming to europe. will talk someone with an inside scoop, colin parfitt will be joining us next. this is bloomberg. ♪ get help reaching your goals with j.p. morgan wealth plan, a new tool in the chase mobile® app. use it to set and track your goals, big and small... and see how changes you make today... could help put them within reach. from your first big move to retiring poolside and the other goals along the way wealth plan can help get you there. j.p. morgan wealth management. ♪ (upbeat music) ♪ ( ♪♪ ) woah. ( ♪♪ ) ( ♪♪ ) ( ♪♪ ) ( ♪♪ ) constant contact delivers the marketing tools your small business needs to keep up, excel, and grow. constant contact. helping the small stand tall. [announcer] if you're thinking about earning your degree online, snhu can help you get there. - i felt sup

hucksters and fraudsters are some of the words securities and exchange commission chair gary genslerdescribe the crypto industry. bitcoin backer and silicon valley og tim draper joins us live, next to respond to gensler 's, oh, yeah can't wait to hear what tim has to say plus drapers take on the market ahead of the federal reserve decision wednesday. closing bell 26 minutes away and yes, here we go the s&p right now still on track for its first close above 4,300 since august of last year. it's a metric, we're going with it. ♪ i have type 2 diabetes, ♪ ♪ but i manage it well. ♪ ♪ it's a little pill with a big story to tell. ♪ ♪ i take once-daily jardiance, ♪ ♪ at each day's staaart. ♪ ♪ as time went on it was easy to seee ♪ ♪ i'm lowering my a1c. ♪ jardiance works 24/7 in your body to flush out some sugar! and for adults with type 2 diabetes and known heart disease, jardiance can lower the risk of cardiovascular death, too. jardiance may cause serious side effects including ketoacidosis that may be fatal, dehydration, that can lead to sudden worsening of kidney function, and genital y

but, of course, you have sec chair gary gensler being on a higgs to crack down the on crypto -- missione sec recently approved promete yum to be a special purpose broke e orer dealer. not really well known, charlie. >>s it is probably the most with bizarre -- it's the biggest story many crypto right now, and mike novogratz actually weighed in on it on a thread. it's all over the internet. here's what we have, we have a company that no one's ever heard of, it's operated out of wall street, you know, a small office this wall street -- in wall street, that got a designation that everybody wanted. okay, robinhood, coinbase wanted it, ftx, sam bankman-fried was trying to get it. and that's the sort of sec prim tour on being a crypto broker-dealer where you can essentially trade crypto. that's legal. so you could probably trade bitcoin. you'd have to trade stuff that's registered as a security. i don't think there are any -- there may be some obtuse things that are registered as a security, but there's not a lot. but anyway, getting that designation is the sort of first step towards this bein

yards on keeping it simple, fire gary gensler. other one is i agree with an overall, overhaul of the sec. gary as part of a machine. we love hearing from you. i am extremely disappointed. i want to apologize. i want to ask the representative what is happening with donald trump in miami as well. hopefully we can bring them in before the week is over. back to the markets. it really looks like we are racing past the consolidation, panic buying phase. >> 4100 on the s&p, 4200, we would have some time, consolidated things, no breath taken, a leap forward, the market will continue to do that. the marker of a, quote, new bull market, investors on the sidelines are panicking they missed out on the first 20% move% move from the bottom. the next step is fear of sideline money coming in, providing sideline underneath the market. are they not that bad? some analysts expect earnings to pack up, investors are discounting that, the sidelines, money is looking at all of this having missed this performance. i don't know anyone who has caught this r

shery: the sec chair, gary gensler, i'm crypto gary -- on crypto regulation.tcoin erasing all the losses we saw after the sec sued binance. today the agency accused coinbase of running an illegal exchange. su keenan has been following this. it looks like there could be a court battle on this. we heard from coinbase. su: sonali basak talked 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 fol

chair gary gensler talking about the crackdown on crypto giants.d starr, a senior lecturing fellow at duke university good morning to you. let's start with coinbase, we'll talk to brian armstrong at this table in the next hour i'm so curious how you think about the s.e.c.'s case at the same time and we have been talking about it all morning that they did green light the s.e.c., the ipo of the company, and it is a company in the finance space and i think there is a lot of people scratching their heads about all of this. >> thanks, andrew. good morning, everyone i can understand why people scratch their heads because it sounds like, hey, they registered with the s.e.c. as a public company, the s.e.c. must have blessed everything they're doing, so how can the s.e.c. come back and charge them? that's a complete, not just a misreading of the securities regulation, it is completely untrue the s.e.c. goes through an analysis of an ipo of looking at your perspectives and registration documents and registration statements, but they don't make any approval b

gary gensler assumed office on april 17th of 2021.ven misses the bigger point. anyone is allowed to go public if you file the right paperwork. so the defense that we were allowed to go public is really not an defense. it's not a defense in the court of law, even coinbase's own disclosures if you read the filings say that. that's a pr move. what we will see is what the courts think of this. that an open question at this point. how do we classify securities. the law is pretty clear. it's securities are defined under the howie test whhas four parts. investment of money. common enterprise with expectation of profit. bitcoin has been classified as a commodity, a whole other story, these other cryptos look like securities to me. >> i love the regulatory turf match elements. there is, obviously, lawmakers trying to set up a legal framework which has been a cluster. fascinating thing, look, i understand that the s.e.c. officials that bring cases do this intentionally, plug in damning quotes, including the one a top official we are operating a

if you ask gary gensler the issue is no companies are willing to comply with these regulations and based you can find occasionally a company that is trying to skirt regulation but i work with companies every day that spend a lot of time, energy, resources on trying to engage with regulators. and so when it comes to any regulator, regulating an industry cooperation has to go both ways. there has to be dialogue. charles: yeah. >> if 30 conversations between coinbase and gary gensler and the sec can't result in something i don't know the clear path forward but it's, it's friction point and damaging to the trust in the industry and to our innovation here in the united states. it's crazy. charles: you're absolutely right. a lot of people point to that too. we'll push out an amazing industry off our shores. then we'll be really be sorry. haley, thank you very much. coming up i have more proof you want to be part of the greatest want to be part of the greatest money-making machine in history. it ain't easy but ssets to balance risk and reward. with one element securing portfolios, time after ti

the words from gary gensler could not be stronger. in accused binance and its ceo of engaging in a web of deception, conflicts of interest, a lack of disclosure, and calculated a vision of the law. he said the public should be aware that investing in of their assets in these unlawful platforms. binance has vigorously denied the allegations but they are significant. the lawsuit further claims that binance sold unregistered crypto asset and that its own tokens as well as its stake in investment schemes are in fact securities. that is the heart of the lawsuit. it adds binance purposely saw to evade u.s. laws -- sought to evade u.s. laws. they say the ceo and the binance company remain heavily involved behind the scenes and the founder misled the regulators as well as the investors. in terms of the impact of this, on the crypto currency markets, with all other exchanges such as coinbase, the largest u.s. crypto exchange down as much as 13%. it paired losses to 9% by the end of the trading day, robinhood took a hit and as mentioned bitcoin

and gary gensler that i can think of, is on the board of edx, the exchange we mentioned today.tue is an investor, just to lay that out there. >> ken griffin, who hates bitcoin, this is his firm's project. >> i think the way you think about innovation, any type of innovation, is generally, you can get inside the red zone, to use the football analogy, but to get it over the goal line, you need within the industry the financially strongest players, the ones with the most credibility to get it across the goal line. because they're the ones that can navigate that red zone area. i think the collaboration is exactly the type of collaboration that could do it i also think the asset class is trying to traditionalize itself. it's been trying for a number of years. i think the owners of crippo, what they have to understand is ultimately, the way you traditionalize crypto as an asset class is not through extreme price moves. it doesn't have to go to 100,000 for it to be validated as a traditional asset class. it can be done so in the format of an exchange providing in this instance the typ

wall street calling out sec chair gary gensler's war on text ing.st for us. what's going on? charlie: yeah, i mean there's a lot going on out there as you know cryptos problematic, markets, a lot of penny stock pumpers out there telling you that amc will go to a thousand. still, even with the fed rate increases, taking a lot of air out of that stock and some of the other meme stocks, but what is gary gensler focused on? we know he's kind of into cracking down on crypto. we've seen that, but when i'm talking to securities lawyers i heard another be one of his pet peeves is this thing known as wall street texting that firms particularly brokers and financial advisors are somehow violating the law if they text their client and it could be something as hey, joe, i know i manage your account. check your e-mail and they do this on a private text message. somehow this client broker even mundane stuff like that is viola tive breaking the securities laws because everything needs controlled and monitored and watched so what i'm hearing from my sources at the

gary gensler was talking about the house of cards tumbling. that feels more ominous for crypto.om: that was a standout from that interview with the chair of the sec as he takes a hammer blow to crypto. i wanted to talk about week futures. that ties into this important geopolitical story. the news that this dam has been attacked, the ukrainians blame the russians in ukraine. that led to a big spike in terms of pricing. that is a reminder of the potential commodity shocks in the system. this is down 2%. in the session today, use our prices popped up. we were talking about natural gas prices in europe and that pop of 20%. simon white was saying is that recession that is the biggest risk, it is resurgence, inflation. tying that to the geopolitics, a reminder that you still have that risk and volatility. if it is not appearing in equities right now, maybe commodity markets is the place to keep your eye in terms of where you see inflation. alix: that also goes to the fact that ukraine is still a big issue. maybe the markets got too complacent about that. ukraine is blaming russia for

. >> when was the last time you personally met with gary gensler and what did you say? he first came in as the chair i flew out to new york. i reached out to him, our team reached out. i tried to make an effort to connect with him in person because that is what attention do when a new regular comes in. unfortunately, we were not able to connect. i'm not sure why i cannot get on his calendar. i followed up a few times in the year after. we eventually got a meeting that was virtual. it may have been covid related. we were able to get a virtual meeting. unfortunately, it was a pretty icy reception, i would say. we came in cash in hand and said gary, you asked people to come in and register, we are here to register. what would you like us to do, what process would like us to go to through? this process was, talk to your lawyer, i'm not here to advise you. manus: coinbase ceo brian armstrong. a quick snapshot. lost it all on monday, to get back on tuesday. here they are trading at an eighth of 1%. cathie wood at arc brought another chunk of coinbase on -- bought another chun

it is is commingling assets with client funds gary gensler claims coinbase traded crypto assets whichre securities and should have been registered coinbase disputes that and is calling for clear rules. co coinbase ceo spoke to the u.s. colleagues and urged the s.e.c. not to overstep. >> trading a small number of assets we rejected 90% because we felt they were not appropriate for our exchange 200 are listed on our product. i don't know to his point about what is "t "there" there, ukraine raised $200 million and presidential candidates are taking it in. it can be used for all kinds of financial services we don't need the government picking and choosing >> armstrong voted against s.e.c. to allege against binance. >> the companies could not be more different in coinbase, there is no allegation of misappropriation of customer funds. i have not been named personally this really is a technical matter about dclassified currencies. >>> we will have the interview with christophe devusser do not miss that exclusive coming up next ah, these bills are crazy. she has no idea she's sitting on a gol

is taking the measure to protect customers and it has 1 to 1 reserves for all deposits of the gary gensler ramped up the industry saying it is rife with hucksters moody's cut the outlook on coinbase from negative to stable after the lawsuit was filed against the firm this week accusing it of being an unlicensed security exchange our u.s. colleagues will speak with cathie wood her first appearance since buying coinbase after the lawsuit. that is coming up at 1:30 cet. >> that will be interesting. i'll mark it >>> sticking with tech 70% of surveyed say a.i. has already significantly changed how they work. more than half say digital transformation is the single the most important strategic priority that is according to broadridge. the reports is coinciding with broad gpt which says it will assist clients with liquidity and price discovery in the u.s. corporate bond market. the president of broadridge is joining us to talk about the results and help us understand the gpt. the financial executives and firms see digital transformation as the most extra -- strategic priority >> we he do this -- w

don't miss the exclusive with gary gensler coming up on "squawk on the street. >>> ahead on "worldwide exchange," why one of the biggest rising costs for insurance companies, in addition to climate change and inflation, but fraud. we will look at the new numbers and what it could mean for the stocks next. let newage products transform your garage into an area of your home you can be proud of. modular steel cabinets let you pick and choose the storage solutions to keep your garage organized, with overhead racks and shelving, slat wall, workstations and flooring that let you create a showroom garage to call your own. designed for diy installation. all you need is one weekend to take your garage from unusable to unbelievable. visit us at newageproducts.com. ahhh! icy hot pro starts working instantly. with two max-strength pain relievers, so you can rise from pain like a pro. icy hot pro. >>> vague nonsense and all of these people thought he was talking to them in code. >> i see the crazy conspiracy theory reddit and twitter. they think is happening. >> telling them not to give up the figh

continues the scrutiny of binance, lawyers for the exchange are accusing gary gensler of serving as andviser. the lawyers claim the documents filed say gensler offered to serve in the role in 2019 with cz t they sat down for an interview with gensler as part of the course he was teaching at m.i.t. back to you, frank. >>> despite the drop yesterday, the s&p is inching toward 4,300. let's talk about what is going on with the sectors in home building and retail heading in opposite directions. the home builders have been on a tear up 25%. it is gloomy for retail. marginally positive in 2023. john ovallo and liz suzuki wil be with us in a moment we start off with john mortgage rates are high. doubled year over year when you look, less people are buying houses and your data came out. there are less people searching for houses why are the home builders doing well >> it is an interesting time, frank. thanks for having me of if you look at the existing homes, there is nothing out there. think about the other side of the equation with the smaller and private home builders. there is less demanded

you're looking at the statement from the sec chair gary gensler.s no punches, calling this a web of deception, sites lack of disclosure, calculated evasion of the law. it's important to point out that the suit says that binance purposefully sought to evade u.s. laws by separating binance u.s. from the rest in 2018. but it alleges that both binance and its ceo still remain actively involved behind the scenes. so another words, they are saying there is no separation. they are also saying the sigma train, a trading firm owned by the ceo, inflated trade volumes. that is the same entity involved in buying and selling. importantly, binance issued a lengthy statement: the suit disappointing, saying they may try to settle the issues, they are disappointed the sec filed suit. but the impact on crypto assets and importantly other trading exchanges was very severe. we saw coinbase, the largest u.s. exchange, drop about 13%, paring that lost to 9%. we sub bit:, the cryptocurrencies, drop close to the 25 -- these were pretty big hits. one of the most noteworthy

gary gensler with the sec basically said that it would be as if the new york stock exchange were a hedgeedded against itself. that is how he characterizes the crypto industry. those in it are going to fight back. shery: interesting to see the resilience in crypto asset despite that. su keenan joining me in new york. be sure to tune into bloomberg radio to hear more from the days big newsmakers, get in-depth analysis from the daybreak team. now broadcasting live from our studio in hong kong, we have plenty more ahead. stay with us. ♪ good night! hey corporate types. would you stop calling each other rock stars? you're a rock star. you are a rock star. no more calling co-workers rock stars. look, it's great that you use workday to transform your business. but it still doesn't make you a rock star. so unless you work with an actual rock star. hi, i'm ozwald. hello ozwald. pam, you are a rock- i wasn't going to say it. ♪♪ heidi: in a surprise move, the pga tour and liv golf have agreed to a merger ending dispute between the two tournaments with had billions of dollars at stake. more details

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 comes to regulators for a long time now. coinbase we know says a lot of the things they posted are not securities while the securities and exchange commission believes they are. they have a spe

gary gensler saying yesterday it's top priority to protect investors.u.s. securities laws crypto should be no different and these platforms, these intermediaries need to come into compliance and protect the investing public >> coin base ceo earlier this morning on "squawk box" defending the company saying it's always been transparent with the s.e.c listen. >> gensler has statements to congress saying he doesn't feel he has the authority to regulate the industry, and we're seeing statements, and we filed a formal petition with the s.e.c. asking for clarity in on points of on the law that they never responded to and then this, and it's not good for the industry, america. >> cathie wood scooping up the stock. and some analysts coming out for coin base as well saying they're ready for battle they expect it to be a headwind but expect it to go back to business as usual. >> gary gensler yesterday saying this is a company whose business model is based on noncompliance. therefore the question if they are to comply, what does that mean for their business model b

. >> why did gary gensler choose to allow that to go on and choose to basically try to put crypto outf business >> because the securities system worked i mean, you know, we had these securities, and they blew up, correctly, because it was really nothing there. >> took a long time. >> well, but, you know -- >> it was a manipulated situation. >> but there was nothing -- well, i don't want to -- remember, that's different from whether the securities system worked >> yeah. but, i mean, why -- you know, gensler, why isn't he protecting the people who are buying -- went on robinhood with $500 and didn't know what they were doing? >> well, because that's caveat emptor binance is not caveat emptor binance is charging that was sam bankman-fried. caveat emptor has been the law of the land for the way it's always been, like, hey, you know what >> fair point. >> if you're going to be stupid enough to buy mmtlp, what is my favorite stock now we have a guy named ben, our expert on some of the more abint abstruse situations we look at there's a torchlight merger with the meta materials, the canadian

maria: that's a great point for gary gensler.o wrote the check for the steele dossier. he was the ceo for hillary clinton campaign's right. >> >> i don't know off the top of my head. he's been involved in a whole host of actions. maria: i was told that we'll keep following that. the supreme court ruling on president biden's student loan bailout which if it rules against another pillar of bidenomics would collapse. student loan payments are set to resume. the payments will be due again in october, congressman. you were on the board of regents at the university of wisconsin. tell me about the the impact here because all of this effort by congress to try to rein in the spending has now been called into question, given the fact that this administration wants more stimulus. this is stimulus forgiving all of this student debt, is it not. >> i think the action of the administration is unconstitutional. we'll read the ruling in the near future and find it is in fact unconstitutional. the policy has been costing the american people $5 bil

. >> when was the last time you personally met with gary gensler and what did you say?rst came in as the chair, i flew out to new york. i reached out to him, our team reached out. i made an effort to connect with him in-person, because that's what i try to do whenever a new regulator comes in. unfortunately, we were not able to connect at that time. i'm not sure why we could not get on his calendar. we followed up a few times in the year after that. we eventually got a meeting that was virtual. it may have been covid-related or something like that. but we were able to get a virtual meeting. unfortunately, it was frankly a pretty icy reception, i would say. we came in hat in hand and said, chair gensler, you have asked people to come in and register. we are here to register. what would you like us to do, what process would you like us to go through? his words were, talk to your lawyer. i'm not here to advise you. started. at that point we realized there was a gap. we felt this was an important technology we felt needed to be built and does -- needed to be built in a safe

the idea is gary gensler and the sec has taken a pretty aggressive stance across, and for good reasoneen some bad actors trying to clean-up the market. blackrock is generally going to be perceived as a good actor and if you're going to grant someone the first right to do this , you would expect an institution like that to get it. now one of the negative things that's happened and also hasn't really been reported on is how as the u.s. has been pushing some of these big businesses out of the country, the chinese and hong kong have been picking them up, and so hong kong is very quickly becoming an epicenter of picking up everything that we've been losing. stuart: have we yet seen the underlying technology, blockchain? has that really broken out and in-use any place? >> yeah, i'd say not to the degree that we dream or hope of , but certainly we've seen it with nft's. stuart: they are gone aren't they? >> not at all. everything will eventually be a nft in my view. it's just a chain of custody and a titling system and eventually where do assets lie. now, the first example of that we saw was

one of them, a republican, was saying that it seems like gary gensler is trying to empire builder trainnd he is tried to front run congress by taking all this action at this time. ed: this is bloomberg, so we follow the money. it is interesting to join the dots in 2023. i think back to silver gate and bloomberg reported that there is a $70 billion trail as it relates to binance and those two banks. katie: we know that they are no longer in existence, they both failed earlier in the spring. we now understand via an sec filing that was filed in support of the motion to freeze the assets of binance u.s. that $70 billion was funneled through both silver gate and signature bank by binance and related equities. i believe it was $50 billion of deposits at silver gate, then another $19 billion moving and a couple of days. it's unclear whether or not those banks actually flagged some of those transactions or not. but as you say, just kind of following the money trail of this as the sec puts forward these allegations and asks for that injunction. ed: kailey leinz visiting us from new york. we wil

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 context. the timing i do not have an answer for. i think that in the conversations we have out here with students in this industry, all that invest in tokens, they see this dragging on for months until we reach some kind of conclusion. we have got the tweets that brian armstrong put out yesterday. he is welcoming the opportunity to go to court, represented crypto industry, and say this is how our business works. and debate the legality or merits of it. it is fascinating, the timing. should ali bassett, i hope she asks why now? alix: i am sure she will. if you want to get in the weeds with this coming you have to read matt's column. he does great deep dives into wall street every day. yesterday, he made it clear that coinbase and binance did the same thing but differently. this is where the rubber will meet the road. it comes to binance, it is more opaqu

i clearly think that the sec gary gensler essentially said as much he wants to reg you latino the entirefor investors? >> no this is actually good for investors. finally we'll have a showdown at the okay coral. david: it's good to have clear borders in terms of the law. >> the reason crypto is going new where and it has not budged between the best index is the price of bitcoin between 25 and $30,000 it's going to stay there for ever because there isn't a single dollar of institutional capital in this space, zero. they are not going to get involved in a fight with the sec because every sovereign wealth fund, every institution that invests money or manages it is actually in sync with the sec as their regulator so what i would encourage coinbase which is the granddaddy of the centralized wallet, the first in america, i would swap out management, and i don't mean to be, brian, the founder and ceo, he's a great pioneer, but he doesn't have what it takes to take it to the next level. the idea of going to war with the sector the fourth time, i mean, gensler made it clear. the answer is no. it w

framework and not pushed offshore to less regulated environments and that's precisely what chairman gary genslers one of the most recent steps in him trying to govern digital assets by enforcement instead of working with congress on the proper statutory framework. this would essentially make it null and void for trying to trade a digital asset on an exchange. this is one of a series of mistakes i think chairman gensler is making. he's done that on custody and also on defining what's a security an what's not a security in the digital space. maria: you've been working on this for a long time. have they been consulting you and your subem subcommittee in s of what the framework should look like for cyber. >> our colleagues and democrats and republicans, we have not gotten the kind of collaboration that we would like from the s.e.c. and we've gotten it from everybody else. we're encouraging chair gensler let's work together and not work against the middle on this because you're hurting american innovation, you're going to put america behind europe an other jurisdictions on this important futuristic a

and gary gensler doesn't like crypto and doesn't think we need it. i would be very cautious. but 55% of generation z invest in crypto. it should be no more than one to 3%. your portfolio from a financial planning side of the fence. i get it. see the sexiness of it. it may not be around and binance is being sued. coinbase is being sued by the u.s. government and i would be very, very cautious after bankman-fried got into so much trouble last year. basically take the industry. yeah. just makes me a little nervous. >> what about a small companies? it looks like the smallest stocks are doing pretty well. >> yeah, this is great news because darya for one k and you don't have individual stocks in 4, 1, k but you probably picked small cap fund mid cap fund a large cap fund and large caps behind companies like apple. microsoft doing great this year, but small caps laggards. now the last week small-caps woken up and run 4, 5, 6%. so in your 4, 1, k may see a big jump because the things that we're lagging, international stocks in small caps are playing a little bit of catch-up. and the

. >> kristina, thank you kristina partsinevelos gary gensler is going to be on "squawk on the street"w. we'll be able to ask him about all of this, i'm sure. and it does seem increasingly that the s.e.c. is very behind in terms of regulating this whole industry, which grew up around it, offshores, out of reach, and it did nothing until now, dan >> yeah, i mean -- listen, if you talk to a lot of these people at the exchanges, they would welcome the regulations. they want to know the rules. that is a huge issue and it is a huge issue in the u.s., particularly because there was a lot of innovation here and it seemed to have left and it's gone back to asia and in other parts of europe. if you look at the market cap of bitcoin, they are equal to the market cap of, let's say, a meta, okay all about $700 billion or so and when you think about that, if you look at those two assets, however you want to describe them in regulatory terms or not, you'd say there's 85 million or so crypto wallets globally there's one meta we know they have $2.5 billion -- 2.5 billion users it seems like a logical

the sec chair, gary gensler, on cnbc this morning said, what coinbase is doing would be like if the newock exchange was allowed to operate a hedge fund. so could the outcome of this case, roben, really tame the wild west that crypto has been for the last decade? roben: the wild west aspects are, i mean, truly the most profitable elements, if -- i think if you look at the revenue model for coinbase. and it's had a pretty harsh two years. in these various gray areas, such as staking, i mean, where you really have to read the fine print and the legend, it's like lending out stocks if you're part of a -- a client of a brokerage firm. you have to opt into that are getting things on margin. they roughly rhyme with what exchanges and wire houses do, the likes of goldman sachs and schwab and others. but coinbase's offering here, it's saying that, if you regulate us such as this, it's going to kill the whole thing. i mean, we're supposed to be deregulated. and what is a token? what is one of these non-bitcoin things? if it's not a commodity, it's kind of a meaning of life question. are we an eph

children buying digital assets away from cryptocurrencies with some of their favorite games. >> gary gensler said because most dollars aren't in circulation and they're on -- you know, they're just entries, that they're digital i don't know where that dropped in the conversation. >> one thing that i think will help clarify things, and i think as this goes through the legislative process, this is more of what you'll hear what the internet financial system is doing -- and that's the crypto ecosystem -- is building in the layer that the architects of the internet did not include in the early days of the internet as we were building it out in the '90s, and that is the financial layer. instead what do we have today? the traditional financial system for a merchant to get from his store online -- website, to a customer, there are nine steps two of them are the merchant and consumer seven are toll takers, anywhere from 2.5% to 4%. the internet will make the financial system so much more efficient. i think as individuals begin to understand that, it will become much more acceptable and will delight t

. >> one was the last time you personally met with gary gensler ?the chair, i flew out to new york. i tried to make an effort to connect with them in person, because that is what i try to do when a new regulator comes in. unfortunately, we were not able to connect at that time. he could not get on his calendar. we followed up a few times in the year after that. we eventually got a meeting that was virtual. it may have been covid related. we were able to get a virtual meeting, but unfortunately it was a pretty icy reception. we came in and said you have asked people to come in a register and we would like to register. what process would you like us to go through, and his response was talk to your lawyer. i am not here to advise you. shery: here is a check of the latest business flash headlines. a billionaire says ai is here to stay, calling it as transformative as the internet. the family office chairman and ceo spoke to us at the bloomberg best conference, saying he expects to own nvidia shares for several more years. >> the ais dominated the loan p

>> not specifically we haven't heard from gary gensler specifically to the bitcoin, the spot bitcoinknow grayscale and the sec are engaged in a lawsuit right now. grace will try to convert their trust into a spot bitcoin etf. they were denied and sued the sec as a result. tom: were they denied to the same reason like rock be denied? katie: basically the sec's reasons for denying the application has been they are worried about market manipulation. they are worried about fraud and was different about the blackrock filing is it it has the surveillance during agreement between the exchange the etf retrade on such as nasdaq and the crypto exchange. tom: in the united states? katie: yes. tom: where does the government come into surveillance this as well? katie: in the exchange. that should satisfy that market manipulation concern. we will see if that actually works out. the fun thing about the filings is that the clock is ticking now. the sec has to let them lunch or deny them. we will get an answer for blackrock the absolute latest is about next february. tom: grady greifeld on crypto. tw

seeing the institutions come in that got stopped by a combination of sam and gary, sam freed and gary genslerst not a lot of activity >> so will you help kelly with her -- >> no, no, no. >> we've been talking and obviously it's totally about what your risk profile and tolerance is whether you one-year t-bill or bitcoin at 27 >> you to tell me you would take a 1-year t-bill at 5.2% all day long no >> you have to have some 1-year t-bills but i've always kind of lived on the risk curve. we're on an i.a. bubble. having watched bubbles my whole life, it's a pretty exciting one. it makes trading the stock market complicated because everyone knows that stat, 494 stocks of the s&p are up changed and the other six make up all the gains. it feels early the a.i. story is just starting. we started using chat gtp three months ago bubbles don't last three months. they last a lot longer bubbles always happen around things that fundamentally change the way we live bubbles happen around the way we live people buy way in advance add get caught up in the frenzy. nasdaq is way outperform it can continue to outpe

filed suit against binance, they are accusing gary gensler to serve as outside viadviser to the company he offered to serve in the role in march of 2019 that he had with the company's founder cz and other executives cz continued to stay in touch with gensler and continued the conversations as part of the crypto course he was teaches at m.i.t. >> this is interesting i tried to figure this out yesterday. i guess the original invitation for lunch came from cz having him speak to students at m.i.t. came from gensler gensler said he does not need to recuse himself that is what cz's lawyers were pushing for. >>> mystery trader netted millions on coinbase options bet minutes before the s.e.c. announced it wass suing binance. an monday, hours before the price of $50 which expired friday, hit the tape as it traded over $61 a share. by noon in new york, coinbase fell and the options bought at 61 expiring on friday with the 50 strike price, they were 18 cents each and traded for $1 which is a gain of 460%. they are still out of the money -- >> but sold at the peak? >> got into the money and would

eastern, gary gensler can weigh in. he is much more focused on crypto than we just then. is ready to go online. any questions? -yeah, i got one. how about the best network imaginable? let's invent that. that's what we do here. quick survey. who wants the internet to work, pretty much everywhere. and it needs to smooth, like super, super, super, super smooth. hey, should you be drinking that? -it's decaf. because we're busy women. we don't have time for lag or buffering. who doesn't want internet that helps a.i. do your homework even faster. come again. -sorry, what was that? introducing the next generation 10g network only from xfinity. the future starts now. when people come, they say they've tried lots of diets, nothing's worked or they've lost the same 10, 20, 50 pounds over and over again. they need a real solution. i've always fought with 5-10 pounds all the time. eating all these different things and nothing's ever working. i've done the diets, all the diets. before golo, i was barely eating but the weight wasn't going anywhere. the secret to losing weight and keepi

we have not talked about this week but a big shift by gary gensler.ow unchanged and slightly negative on the s&p 500. yields are higher by three basis points. i think we would all like a quiet session going into the weekend and focus on cpi and the fed after that. tom: deutsche bank on equities and asset allocation, global strategist binky chadha joins us. you nailed the bull market. the chadha bull market took time to happen and with a vengeance, you nailed this. when we talked about going live you made clear 10% of the people who have participated in 90% of the people left behind, what does the look at for 90% of the people who missed the market? binky: the distinction that i was drawn was we have had a move up in equity positioning. we were at the bottom last year. that was the reason for the positioning squeeze. positioning today is in the middle of the band. but the entire move has come from systematic strategies as it has come down from extremely elevated levels to extremely elevated lows. especially driven by early rates. discretionary investor