gensler? chair gensler: as mr. cook said, it is taking a somewhat holistic approach and in a variety of places, but options raise a couple of other issues. there is more risk because of the inherent what is called leverage. i can say, i want to make an investment that someone is going to go up or down but i could lose all of my money very easily and in option. rep. auchincloss: i know what options are and what leverage is, but do you think the sec standards for demarcating where gamification and good user experience end and friday -- fiduciary begins is enough? >> the gamification's inspiring people to trade more and economic research shows that the more you trade does not necessarily lead to better results, particularly in the field of options. it is potentially more pernicious and options. rep. auchincloss: absolutely and i would appreciate that. what i would encourage you and your staff to focus on and the reality that this trend of gamification is going to accelerate. it is a common maxim in consumer tech that

german gensler -- chairman gensler, thank you. are you familiar with the task force on climate related disclosures led by former mayor mike bloomberg? chair. gensler: yes, i am. good to see you again. >> my pleasure. have you read that yet or had a chance to study the summary? chair. gensler: i have had an opportunity to take a look at it during my confirmation process. i have yet to dig into it yet with the career staff at the sec. >> i know that you believe that companies should be required to disclose material things. you made a statement that companies have a legal obligation to determine what is material. do you think companies have any obligation to disclose nonmaterial risks regarding any topic? chair. gensler: i think that the heart of our disclosure regimes over multiple decades is that which investors are looking for to make their decisions. and we have regimes, from accounting regimes, discussion and analysis, employment compensation. those regimes are that which investors need to pick up on and make their decisions on.

gensler -- it primarily goes to mr. gensler. they question raised to me by a friend of mine so i am going to ask it as he presented it to me. when you are chair, you did not have any black division directors at that agency. will you commit to doing better at your core role at the sec -- your current role at the sec? >> i just hired the first chief operating officer in the history of the sec. the answer is yes or -- yes sir. >> thank you. i am perplexed by this whole gamestop thing. in 19 and 20 we had four dollars, february 9 it was a 50 and now it is bouncing around at 30. 62. i'm concerned about the unfair advantage in order flow, and i am concerned about the potential harm from short sales. mr. cook, i will start with you. if you were to look at those three things, which bothers you the most, or do any of them? >> those are all valid areas of concern. we are all -- we are looking at all of those areas. we look forward to working with the s -- s ec on this is the expanded use of online trading forms. they create better access

gensler's bus mr. gensler's those tides will know known that you were a -- expert evidence by your time is a professor at m.i.t. and they are benefiting big as any do we are your were teaching on the subject if anyone has time and wants to learn more about lack chain technology. i want to get your views on regulation and digital assets. post 2017 this topic has been a passion of mine and i set out a legislative goal of creating a bipartisan and clear light touch regulatory framework for digital assets that promotes innovation while protecting consumers. the final product was the taxonomy act in 20 teen and range reduced last congress and now this congress. itit has bipartisan support and always has. the bill has input from academics at the wharton school of business and treatment groups like the u.s. chamber specialized groups such as the blockchain association area state regulators in plenty of market purges events. in 2019 u. told me chairman gensler that the sec has been slower than i think we want

exclusive interview coming up with gary gensler.his is interview since taking the job if you have questions, tweet us. as we head to break, check out the big pre-market movers. stay tuned you are watching "squawk" right here on cnbc >> announcer: this cnbc program is sponsored by baird. visit bairddifference.com. experience capability, crafted by lexus. the remarkable gx and lx. lease the 2021 gx 460 for $529 a month for 36 months. experience amazing, at your lexus dealer. lease the 2021 gx 460 for $529 a month for 36 months. experience amazing, at your lexus dealer. wait, this isn't your bed... how'd you get here? ah yes... groceries. earn points now to use on travel later. one of the many things you could expect when you're with amex. oh when june-- hit that guy! yes! wait i don't remember that! it's in season 4 - don't tell me you haven't seen it! i watched season 3. you won't stay caught up for long unless you keep watching the best shows from hulu, peacock, starz, showtime, and hbo max, all year long. just say "watchathon" into

how about if gensler came on, it's dogecoin, will you give me a break?that if people talk like people talk hey, you know what, doge coin -- >> jim, we had the tenth anniversary of the first fed presser that bernanke did a decade ago and who would have thought this would be a regular thing, every month who knows how the evolution of fed conferences will change in the years to come. opening bell what a week on this wave of earnings still remains the best earnings season in about 11 years jim, all the talk of inflation has not stopped net margins from setting records. >> no. >> and david kostin pointed out this morning, buybacks are once again out there. >> i am tired of him being so smart and they are long and must-reads in the first quarter, the buybacks were very big and i know a lot of people are saying, where are they when stocks were down well, the answer is they thought they were going to go under for heavens sake that was the point the point was they couldn't buy back the stock because they're trying to figure out whether there is ever going to be a

>> reporter: gary gensler told the house financial services committee that specifically the rise andexperience played a big role in the volatility. he has directed staff to see whether expanded enforcement mechanismings are necessary. mechanisms are necessary. >> the sec must remain attuned to rapidly changing technologies with an eye to freshening up our rule set where appropriate to continue to achieve our mission. if we don't address this now, the investing public -- those saving for future retirement and education -- may shoulder the burden later. >> reporter: now, gensler went on to say that apps with behavioral prompts like notification, they have social trading, that could affect decisions outside of the fundamentals. gensler says the sec will deepen its understanding, resources and capabilities around social media adding that there are dangers of wrongdoers hyping a stock that may not warrant investment. gensler also saying that our modern economy is leaning toward market concentration like google for search and amazon for shopping, and he wants to see what that means for cle

sec chairman gary gensler will be testifying. remarks, he said it hasn't legations for robinhood and the likes of citadel. joining us is the cio for qvr advisors, benn eifert. what do we expect? benn: we expect him to go through the wild swings we saw in gamestop and other stocks in late january, and basically here what he thinks for the first time the sec -- the first time what he think the sec should do in response. this is his first time facing lawmakers since he started the job, so i think we can expect them to be asked simply tough questions about does he think that some of these market-making firms, you mentioned citadel securities and some others, but he things about the role that they play in the stock market. we are getting into some weedy territory for equity markets that aren't often talked about in washington and a kind of high-profile venue, but thinking back to earlier this year, this gamestop story, the wall street versus main street narrative, it was national headlines, and i think lawmakers are still hearing from

much more on gary gensler throughout the show. president biden leaving lake charles, louisiana, just moments ago. but while in the bayou state, the president said that he would like to see the corporate tax raised from the 21% that it currently is -- and it was reduce thed to by former president trump back in 2017 -- back up, and this is the change here, between 25 and 28%. he had originally said 28%, but now it appears a there's soming wiggle room. president biden saying the extra hundreds of billions of dollars coming in from that would, quote, help pay for things like infrastructure. meanwhile, vaccine maker stocks are tunnel untiling after what president biden -- tumbling after what it said yesterday, supporting waiving patent protections from the pharmaceutical companies' covid-19 vaccine formulas so they can open it up to the rest of the world. scientists say that would in turn help slow the spread of covid-19 in countries like india, but manufacturers say exposing their formula will cost them billions of dollars. to blake b

tom: could chairman gensler take a middle ground in the polarity?you expect that gensler is a wizened wall street veteran that will find middle ground? rep. davidson: i think a bright line test for digital assets is a nonpartisan issue. the token taxonomy act is completely balanced with republican and democrat sponsors. we started working on this in 2017, got the draft language in 2018, and as one of the attendees at the meeting we put together on it, people from the community in crypto, but also big companies like fidelity and state street, market participants like the new york stock exchange were in this dialogue. it is not a partisan issue. it is really just whether you understand the space were not. i am confident gensler will understand it and be able to help move us forward. i look forward to his input at today's hearing. jonathan: we would like to your response to the news at the moment in washington, d.c., that the administration is supporting potentially waving ip protection on covid-19 vaccines, many of which were developed in this country

sec chairman gary gensler told lawmakers his agency is examining the role of social media platforms onket volatility i'm not concerned about regular investors exercising their free speech rights >> more concerned whether bad actors that actually take advantage of influential. >> platforms gains are says the fcc plans to release a full report on the unprecedented events surrounding gamestop stock this summer in washington. i'm anna wiernicki. still ahead on the kron 4 morning news would get a covid vaccine. >> if you got paid in cash. what a new study revealed about that type of incentive. welcome back to the kron 4 morning news and harvey lets get another check of weather with john shrable who's tracking. we can whether we have a very special holiday this weekend is not right, john. yeah. mother's day on sunday. and it's looking like a warm one for mother's day. so. >> maybe a brunch earlier on in the day. if you're playing and getting outside at least good chance to enjoy some sunshine not just over mother's day but really the entirety of the weekend. and if you like a cooler feel to

is very worried about this and gensler is going to make his mark on a couple of things a lot of peopleif you are talking about excesses i'm not saying i believe this , this is what a lot of regulators, people at the sec believe, some securities lawyers, some of the excesses involve spacs like the liz claman spac, or the neil cavuto spac. those , i be very suspect, putting my money in, and i could -- liz: hey, i resemble that remark charlie: [laughter] well, could you imagine? alex rodriguez does have some business experience, he's done real estate investing, but you know, this is different. this is like investing like a mutual fund investing. this is real life wall street stuff. where is steve kohn we know does investing for a living. what does shaq do for a living? plays basketball, he's a very good -- liz: no he does not, oh, my god! charlie: i know he's a businessman. liz: shaq invests, he's invest ing in the blaze pizza, i mean that's been a huge winner. charlie: okay but that's different than this. you know, it's like whose the guy? liz: it's not different. charlie: who was the gu

what you need to watch >>> sec chief gary gensler heads to the hill for the final gamestop hearing we'llssible trading rule changes and what it could mean for investors. >>> plus, tech investor joe lonsdale calling the president's tax proposal nonsense. he joins us with his thoughts as the second hour of "squawk box" begins right now >>> good morning and welcome back to "squawk box" right here on cnbc. i'm andrew ross sorkin along with becky quick and joe kernen. showing u.s. equity futures at this hour, the dow, the s&p and the nasdaq all up. dow up 16 points, nasdaq up 23 points and the s&p 500 up a little over 3 points a couple of big headlines to bring you this hour on our watch. uber shares, they're falling in pre-market trading uber did report a smaller than expected loss but it missed revenue forecasts and uber signaled that it will have to increase driver pay to get more cars back on the road as the economy recovers we've talked about this. you start to see prices creep up as well as a result. don't miss uber ceo dara khosrwshahi who will join us in the next hour to talk all abou

regulatory conference, gensler said they should be ready to bring cases involving issues with crypto, cyber and fintech. his aim is to ensure bad actors are not playing with working families' savings and rules are enforced aggressively and consi consistently wants to let people know the sheriff is in dtown particularly notifying the reddit crowd >> $59,500 to $30,000 in eight trading days for bitcoin that, bertha, is volatility. bertha coombs, thank you see you in a few minutes. >>> let's get more on the markets and your money and your first get today says don't confuse the recent ups and downs, volatility, with the big change in where things may be headed long term and the real driver joining us now is michael bucella. a crypto and block chain investment firm. michael, welcome a good friend of the show, penned an op-ed where he said despite the volatility in crypto, we should take positives away from the big moves because the exchanges and defi actually acted like they should have. they ultimately held up. would you agree with that perspective? >> yeah, i would say this is probably

just moments away from sec chairman gary gensler testifying before the house financial services committeeng. the u.s. payrolls report for april. apparently there's a trade being put on that sees weekly tenure options targeting a drop in yield by 1.5. jobs being the risk event. guy: yes. a big day tomorrow. a really big day. we have great coverage lined up. earnings out from iag, bmw down tomorrow. coal is out tomorrow. in terms of what is happening today, the german health minister talking about the fact he will offer the astrazeneca shock to all age groups and offer all teens a vaccine by august if approved. that pushback from angela merkel also -- if you have the pictures of the new falcon jet. will finish on the airplane before we go to "balance of power" with david of weston. we do not have the picture -- with david westin. we do not have the pictures. ♪ [ sigh ] not gonna happen. that's it. i'm calling kohler about their walk-in bath. my name is ken. how may i help you? hi, i'm calling about kohler's walk-in bath. excellent! happy to help. huh? hold one moment please... [ finger snap

and thus there's really not a protection against fraud or manipulation >> gensler is not asked about a bitcoin etf and curious. he is however going to have to give a thumbs up or a thumbs down to those applications later this year. >> an etf audience didn't ask him about a crypto etf that's mind boggling there let's ask you this what do people in the crypto world say generally about the prospect of regulation that he was talking about, that mr. dimon was talking about? i assume they say, oh, we welcome it, but do they really >> it's split because think of who's in the crypto world. there are people who are there who believe in the prospect of bitcoin and the prospect that this is a whole new world financial world out there particularly in block chain and then the libertarian community and a lot of them don't want a lot of regulation at all it is split down the middle but i can assure you listening to gensler that regulation is coming. >> thank you very much. >>> the head of the s.e.c. and a world biggest bank in agreement on that point. what kind of regulation? let's bring in katelyn

gary gensler sending his strongest signal yet that the wild trading in gamestop could lead to new rulesor online brokerages and firms that dominate the business of executing stock trades. he said popular trading apps encourage retail investors to buy and sell more frequently, something that can trigger lower returns. foreign ministers from the group of seven nations are singling out china's treatment of its uighur minority and has spread some concern over russia's buildup on ukraine's border. following two days of talks in london, the ministers have said they are deeply concerned about human rights violations and abuses. the g7 is also pointing the finger at russia for undermining other countries' democratic systems, malicious cyber activity, and use of disinformation. jeff bezos' blue origin is setting the date of june 20 four its first mission, carrying humans into space. -- for its first mission. it is competing with elon musk's spacex and richard branson's virgin galactic. i'm mark crumpton. this is bloomberg. romaine: all come back to "what'd you miss?" -- welcome back to "what'd y

transactions, so we're going to, tomorrow is going to be a big day and depending on what he said, genslerstrict crackdown enforcement on bitcoin , but again, this is still like way up in the air, and it between a couple of, there's a lot of turf trying to divide up the crypto landscape from a regulatory standpoint, neil back to you. neil: and to shut it down that train already left the station. that might be too late for that. charlie: unfortunately there's going to be a cavuto coin too, i think just to be honest with you neil: i think we could merge our coins. that's what i think you could playoff the italian thing on the one side. charlie: well i would say to italians, italian americans, by the way happy columbus day, but i was thinking of the cavuto coin having your face and dr. evil's face like right next to each other. like you like this and him like this. right? neil: [laughter] it be worth billions. all right, thank you my friend, charlie gasparino, making friends left and right on all of this. all right we have a lot more coming up including the pile-on against liz cheney, what's

gensler warned his watchdog agency has seen overall staff declines also since 2016.er consideration. on this i want to bring in ladenburg thalmann asset chief phil blancato. phil, this whole spac thing they have come down a lot. people are questioning the structure where the folks involved up front take out a lot of money. the spacs i have tried my hand, i have gotten hammered on them. there is no support in the after the markets. it has been a rough ride for them. should there be more regulations? >> more regulations but don't get rid of the asset class. i will disagree with your earlier guests. i think it's a great market. here's why. think of us how many had opportunity to be in an ipo. show me an asset class i get a free look, cash should 10 bucks should never trade above or below it, income, upon the announcement after vote i can get out of it, if i don't like i don't need to own it f i do my due diligence, what they are buying i can make educated guess. take you to the other side. easier to understand what they're buying makes sense. perhaps regulations how muc

gary gensler yesterday talked about a very ambitious agenda for the securities and exchange commissionief who was forced to resign, he doesn't have a head of market regulation, he doesn't have a general counsel. he doesn't have these key positions filled to do much regulating. so even if you think that crypto regulation is coming which everybody's talking about, you know, gary gensler does not have the voices to really do the anything significant. he has staff, but he doesn't have those sort of policy people under him chosen, which is huge in an agency. and you can say that with treasury, with doj and down the line. and that's what's holding up i hear telecom deals, where's net neutrality, liz? that was supposed to -- the biden administration was supposed to bring that back, but they can't because the fcc chair is not in place. it's a lot of unfinished business here more than 100 days in, and it's really gumming up the pipe ifs of business -- pipes of business, particularly business that interacts with government. and the tiktok deal is just one deal, but, you know, it's a major one. i

sec chair gary gensler promising to do more to help the individual investor make it an even playing fieldthink it's fantastic. that makes him my winner of the week. want to bring in district media president beverly hall burg joining me now. i'm sure you read what gary gensler talked about, and he's pushing back against, you know, he wants transparency, he was shorting, you know what, pay for play, the payment for order flow, i think we may see some legitimate changes here that will help the individual investor. >> i agree with you. i think this is important. we need to make sure the individual investors are treated equally and fairly. this will also encourage individual investors to do more in the market, so i think this is a good move, and i think when it comes to financial markets, we're going to need a lot more moves like this that focus on the individual and not just the big firms. charles: all right. i'm going to rapidly go through some losers, get your thoughts, and then i'm going to ask you for your winner or loser of the week. first, we've heard all youtube millionaires, tiktok mi

. >> i think because of some of the things wegot from gensler and the fed and i am sure yell en is about to weigh in and we talked about the systemic risk, by saying, look, we got to figure out what's going on here now. there is way too much lev reg, leverage in the crypto world and by the way, the rate that you're getting if you have your money in some of these darker institutions, is so high, that if i were the fed, i would call them and say guys, what are you doing? getting 5% who is paying you that 5%? one of my guys is doing it. >> what are they doing with your money? >> beats the heck out of me. now is that good if jamie dimon, don't you just say, you know what, i wish the fed would make a phone call, and now jamie says it's too small, i don't know, they're not worried, i'm worried about it, i'm worried about it because david the younger people who are involved with this, i keep getting this, i was thinking that jj yesterday, from td, this is what they want to talk about, the younger people, this is what they're in, david, they're not buying -- well they will say wait a second, jim

he has, gensler has made it clear, he believes this is an issue that the sec should push.eally interesting as this develops, david. never before has the securities and exchange commission taken this much of an aggressive stance on these sort of woke progressive issues, forcing them on companies through essentially enforcement actions. we're not even talking about starting new regulation, let's start bringing cases against people, and saying it's securities fraud if you don't say how many, you know, certain people on your board, how many, how much you can serve gasoline. i mean, some of this is absurd because david, these are hard. i mean these are sort of amorphi s issues. david: it doesn't have much to do with the fiscal responsibility. no, no, listen, this is an issue you'll be talking about for probably months if not years to come. charlie: this is not a story to do in two minutes. david: but the bottom line as you said the bottom line is a lot of people look at what's happening with corporations and say its woken up, it's woke too much when you see what happened with t

applications to reward users decision to trade may encourage frequent trading that results in worse outcomes genslerp >>> and tencent is in talks to keep ownership stakes in the u.s. video game developers the company is negotiating agreement with a u.s. national security panel surrounding riot games and epic games the u.s. has been looking at if those companies handling of the personal data constitution a risk because of the chinese ownership. >>> hilton's ceo offering an optimistic outlook on travel speaking to cnbc yesterday, business travel is back to 50% of pre-covid levels. some markets showing more strength >> i talked to our big customers and friends who run businesses and the like is there is a huge amount of pent-up demand to travel for business and group meetings and events. just because it has been so long since they have done it and they can't accomplish from a venture point of view doing it virtually forever. they are straining under this environment. it will take time. >> brian, leisure travel is propelling the industry's recovery he said he expects to see record numbers in that catego

information on i.t the white house says they're unified for something like that, as well as gary gensler judge." >> welcome to "the halftime report." stocks, the dow hitting another new record today where is your money heading in the months ahead that is the big question joining me for the hour today, courtney gibson, the cofounder and managing partner of new edge good to see everyone, i'll show you the wall, the new record high for the dow today two better than one. 70 for the dow, 34,402

information on i.t the white house says they're unified for something like that, as well as gary gensler. it's time for "the judge." >> welcome to "the halftime report." stocks, the dow hitting another new record today where is your money heading in the months ahead that is the big question joining me for the hour today, courtney gibson, the cofounder and managing partner of new edge good to see everyone, i'll show you the wall, the new record high for the dow today two better than one. 70 for the dow, 34,402, the s&p not that high from it's own high, about 40 points. nasdaq hitting a losing streak that is going on on pace for the worst week in a couple months. it dipped negative,josh brown what is going on in the markets here do you think? >> i think that markets are -- market participants are starting to anticipate the idea of an economy that is supported by it's own inherent growth engines and not reliant on federal growth stimstimulus. i think the fed will have to make an off-handed remark about tapering asset purchases unfortunately there is no great way to come out and say it berna

at 2:00 p.m., gary gensler testifying. interesting to hear what he says about crypto, how much they're going to regulate bitcoin. we have heard from increasing number of congress members who are concerned about some of the volatility we have seen. at what point will this rise to action? it seems like near-term rather than in the distance. jonathan: why can't all governors be like governor or of new zealand? "these are highly conditional predictions, talking about the second half of next year, who knows where we will be?" isn't that refreshing? "who knows what is going happen next year?" tom: looking out, maybe three or six months, maybe a new induced view on gdp. jonathan: central bank governor being open and honest about an inability to predict the future. howard, what an important transition point for this economy. as you pointed out, peak growth is who potentially and we are about to make this transition from recovery to expansion. how do you think about that dynamic? how important is it? howard: first of all, you have

tom: what is kinsler going to do -- what is gensler going to do? it happened once. again?isa: you have this reddit crowd, folks seeing individuals should be allowed to trade, and others saying you should have more precautions. if they are winning, it is hard to make the case that the sec on the government should protect them. romaine: let them make their money. my barber told me he was all over amc, and i was like, are you sure? then the stock continues to rally. let them become a tom. they are the people -- let them be, tom. they are the people. tom: jon from coventry just emailed in and said do a data check. the vix at 16.73. romaine: you're looking at euro-dollar, $1.2181. you talk about all the uncertainty in washington. 1.60% on your tenure yield. go back 30 days from where we are today, that is pretty much where the tenure yield was then. go back 45 days, that's where it was, so there's your stasis now because of everything going on out of washington. wti crude making a bid here. we side make a break above $68 a couple of weeks ago, now trying to push back. lisa: i w

previous guy - >> he needed a lot of staff. >> he needed staff. >> but the laissez-faire, i think gensler has to hurry up. >> what happens if there is a giant hedge fund, not unlike david, you know archegos, what if there's a fund that is $100 billion that was fooling around with, that and all of the different banks didn't know about it, and deutsche bank, credit suisse may not have known about it - >> that would have been a scary scenario, particularly if they were leveraged to that extent. although again is, it systemic no not the case >> why are you so -- >> they have to be connected they have to be really, it has to be deeper inter-connection, right? long-term capital i guess to take you back to a long time ago. >> 1998. >> well, anyway, carl, i just think that when i saw what happened yesterday, i found it a little unnerving particularly because this complex of the wood stock, because that's tesla, musk who turns out to be maybe anti-crypto for all we can tell, and then ethereum, all of the different, doge coin which of course is just a farce and the next thing you know it's built in

sec chair gary gensler came out yesterday and indicated a willingness to regulate the likes of robinhood and said adele more closely as a result of some of the turmoil -- and citadel more closely as a result of some of the turmoil. the fed is going to release a document on financial stability. this is the f--- this is the f-word of the day, froth. jay powell did indicate how they are keeping and i on this, and eric rosengren pinpointing the market in particular. this could be behind some of the dissonance in the market, with discipline reigning supreme. the bond market is very much steady as they go. the real negative yield going further into negative territory. the question to me, how much are investors expecting the fed to curtail some of the suppose it froth that some people say could be in equities? jonathan: lisa's f-word for the fed speak, froth, not the other one. tom clearly had a fantastic cinco de mayo yesterday evening. the numbers just out. let's go through those numbers. moderna -- moderna numbers just out. let's go through those numbers. first quarter revenue, $1.9 billion.

alix: gary gensler testifying. we also may have banks he is talking about it. getting pushback.ill be coming up later on. date two on capitol hill. today it is the house. we are taking that live at the top of the hour. that is not far away. a quick preview as to what data still looks like. that is next -- what day two looks like. that is next. this is bloomberg. ♪ >> how did we end up here where ceos are making 900 times what some of their workers are making >>? we are proud of the opportunity we give to all of our people. my compensation is set by the board. they look at multiple factors. that is how it takes place. >> will each of you set an example to any other company in america, companies that usually follow wall street's lead, by pledging to remain neutral if your employees want to form a union? >> we would work with our employees to make sure their voices heard and do everything they can to ensure that voices loud and clear. >> we would be supportive of our employees have a guess opportunities as they can. >> we would allow them to have their voice heard and see what happ

is this a preemptive gary gensler crackdown on bitcoin derivative thing?this is really part of the regular course of the blithe scale of grayscale products. we often work to launch our products, get them into the public market, get them to be sec reporting, and then we believe our products will be able to become etf's. so far, the grayscale bitcoin and ethereum trust are the first two and only two sec reporting companies that are digital currency investment instruments. so if the digital large-cap fund is deemed effective, it will bring that level of transparency in reporting that we think investors are looking for, and quite frankly, they deserve as they are trying to navigate digital currency investment. guy: in one way, i can buy bitcoin cheap through you because you traded a discount to the price. do you think if you convert to an etf that that discount will close? michael: it is our belief, looking at the arbitrage mechanism built etf's, that any discounts or premiums of where shares may trade relative to the product would be arbitraged away. so there

jonathan: that was gary gensler, the u.s. securities and exchanges commission chairman. keene and lisa abramowicz, i'm jonathan ferro. equities down eight on the s&p, we declined 0.2%. yields higher on the tenure to 1.5977%. -- the 10 year to 1.5977%. here's a story that has really changed in the last 12 months. the high of the year on dollar china was exactly one year ago. we had a seven handle. right now we are at 6.37. it has been a severe move to the yuan's favor. we have been waiting for commentary from the pboc, and they say the following. "the current fx market is balanced. it cannot be used to offset commodity price increases. we can't let it strengthen to impact the commodity market. it cannot be used to spur exports either." what's interesting about this is the s-word is missing, stability. this is a chinese central bank looking for stability. i don't see it in this particular release, though. tom: out of error hong kong news bureau, they have really written this up smart -- out of our hong kong news bureau, they have really written us up smartly. enda curran j

at 2:00 p.m., gary gensler testifying in front of the house financial services and government committees. the question is on bitcoin. how much is the sec going to come out in crypto assets and try to crack down or have oversight as volatility continues to pick up? i don't know how much it is imminent, but the pressure is rising. jonathan: thank you. if you are just tuning in, in the previous hour i actually quoted the dow. tom, i will afford you some time to quote the dow this morning. tom: i think it gives us a great historical perspective. jonathan: sometimes. [laughter] tom: i really think going over 125 years of the dow, dow jones, "the wall street journal" don't own it anymore, but the good of the change of amazon. will amazon split so they can enter the dow? that is a huge debate now among those in the know. but seriously, there were not one, but two seven your periods where the dow didn't change its makeup. jonathan: the conversation i have another phone daily, will amazon split to get into the dow jones. tom: why do you say the dow doesn't matter? jonathan: i'm joking. lisa: that

eventually do, gary gensler, the chairman of the securities and exchange commission so that's why it's crypto, he went out and said, buy some today. just so you know, he sounded like that. remember that crazy tv commentator that used to say buy , buy, buy? we won't say who he is but anyway it kind of reminded me of that. david: crazy eddie is i think who you're referring to that's another one. well -- charlie: by the way -- david: let me just mention that gold has revived a little bit. is it possible that as we see gold go up a lot of people are going back to the old main stay against inflation? charlie: could be. we'll have to see where we end with this. clearly there's going to be a regulatory response. we have to see how tough it is, you know, how stringent it is, and because clearly, listen. look at it this way. put yourself in janet yellen and any bureaucrat's shoes. she was the head of the federal reserve. david: right. charlie: you have this whole side currency industry that takes away your power. david: that's right. charlie: that's taking away the power of the fed to control t

about some things on your plate you have a new administration here, a new head of the s.e.c., gary genslered recently in the house, a lot to say about gamestop, a lot to say about robinhood, a lot to say about retail trading, it looks like he's preparing a report on what he thinks need to be done regarding retail trading and the protection of retail traders have you had any input with his office or with him directly about how to proceed on that >> bob, we're constantly talking to the s.e.c. about our observations in the market, about what we're seeing. gensler has been in the seat for weeks and we are looking forward to working closely with the team closely as they analyze. it while the economy and the markets slowed down, well markets did not slow down. we were exceptionally bigger and the retail investor is a much bigger part of the market than traditionally and one of the things to recognize and we talked about protecting retail investors, there's two component, there's protecting them at the time they're making that decision to trade their order. and so influences on that might be onli

sec chairman gary gensler told lawmakers his agency is examining the role of social media platforms onmarket volatility i'm not concerned about regular investors. exercising their free speech rights online. >> more concerned whether bad actors that actually take advantage of influential. >> platforms gains are says the fcc plans to release a full report on the unprecedented events surrounding gamestop stock this summer in washington. i'm anna wiernicki. the latest. first time jobless claims those numbers now the lowest since the start of the pandemic, the labor department released unemployment figures this morning. it shows 498,000 americans filed first time claims that's down. >> nearly 100,000 from the previous weeks. analysts say while the job market has a long way from prepandemic levels improvements have accelerated in recent weeks as states continue to lift restrictions. up next, the secretary of state has finalized the number of signatures on new sums recall petition. >> why recall organizers are feeling good as we wrap up the week. and after the break, we start off our asian pa

>> now that gary gensler is head of the sec, he is bitcoin friendly. we know that.lass, courses at a mighty -- at m.i.t., and i think the research professionals at the sec understand bitcoin in particular and i think are much more comfortable with it now that we've had several years to digest what exactly it is, go through a bear market, go through a bull market. i think watching the ecosystem evolve and actually become even more anti-fragile, we are getting some real tests here, and if the system doesn't break, and i don't think it will, i think their comfort will increase and a couple of ways. number one, the infrastructure there is robust. number two, the liquidity is there. i don't think that is going to be disproven here. number three, the price is down from very lofty levels, so why not start an etf after a correction in the market than before? so i think the odds are going up now that we've had this correction. i don't know if it is going to be this year or not. we hear perhaps fourth-quarter, but we heard third quarter before that, so as we get closer to the

gensler on where finra and the s.e.c. feels like they draw the line between creating a good user experience with inappropriate behavior that actually is not in the fiduciary interest of the user? >> thank you for that question, sir. i think you touched the -- touch on the issue and characterize it exactly. there's a balance here and we need to try to strike the right balance. with respect to options, we have issued guidance recently reminding firms of their obligations here. but i appreciate your raising options because i think they kind of -- there's a way in which all of these options come together, options, gamification, right, because options tend to provide greater payment for order flow. and so one of the things we often think about the conflicts and payment for order flow is, which firm do i route my orders to. but there's a second level of conflict that options is one example of, i think there are others, where there's a question about which product or which orders do i want to route, because some may give me more

moments ago at a house financial services committee hearing gary gensler, the chairman of the securitiesn to give us a sense of who he might be hunting when it comes to more regulation.

i think the good news for the industry is gary gensler is incredibly knowledge basketball this he's taughtd tom, to your point, i think we need that regulatory clarity i happen to agree with you about two years ago i spoke very publicly, three years ago i spoke very publicly about the fact that icos, initial coin offerings sound like an ipo. i view that as bad for the industry that's a very different fact pattern from what we saw in how xrp was created, how ripple, separate company was created i think the sec as mary joe white saying the sec's wrong on the facts on this. >> hey, brad it's andrew here separately can you speak to the large ger cryptocurrency craze that it feels like we're seeing? maybe it's a craze, maybe it's not in terms of dogecoin, just how far it's gone, what we're seeing with bitcoin in terms of how volatile that's been and sort of the larger market, where you think ethereum is? >> yeah. >> if you were not invested in ripple, where would you be invested if you were going snob. >> well, andrew, first off, i do think dogecoin is an example of some of that speculative, i'

- there's certainly going to be more regulatory scrutiny and the new chairman of the s.e.c., gary genslerchain and cryptocurrency. he actually taught a course at mit. so we do expect more regulation but, you know, in some ways more regulation will be good because protection of investors could lead to more trust as well and it's good to see that you have somewhat a -- this guy, i watched some of the courses are free online and i watched some of this courses. he is very knowledgeable of the space and you couldn't ask for a regulator to be -- to have that sort of background, so hopefully it will be a positive thing for the space rather than a deterrent or a detractor. maria: i want to move on to the gamestop craziness but before that, what is the growth story for coin base? where do you see the value coming from at coin base in the coming three years? >> yeah, it's the adoption of block chain technology, the greater penetration of bitcoin. not only are they the top retail brand but they're also growing institutionally. so the more people that adopt -- and we are seeing it, despite the tweets

and i think someone has to stand up for the people other than gensler, the s.e.c.d we don't want people to lose fortunes, do we? >> we talked a lot about it every day, okay, we talked about the speculative nature, we talked about the prognostications and the projections that you would not typically see with an ipo because they're not allowed to do that in an ipo, and there is a thought that of course really, these are ipos, they're not merger, as we call them, they're just ipos. >> right. >> but should be traded as such. and one wouldexpect in time yo are not going to be able to see these companies put out ridiculous projections for 2026. >> i've had any number of these companies on "mad money" and i don't think a single one of them is up overall, and a lot have lost money. >> listen, chamath palihapitiya, he is still hanging in there virgin galactic has done well, sold a lot of stock there, a number of his have hung in, there at least they're up, right? >> where did the volume come >> open door is still higher clover has not been a good performer. and a couple of

think that's going to be an issue for the third and the fourth quarter so today, big story is gary genslertestifying in front of the house financial services committee. this is the third hearing on gamestop the first hearing as the head of the s.e.c. the testimony is out already not surprisingly he's addressing game-ification of trading and payment for order flow and a big discussion whether the broker/dealers have conflicts of interest, whether encouraging more trading, and the more trading, the more they get paid, the conflict there, and the disclosure of short position, you don't have to disclose short positions unlike you have to disclose long positions. should people do that? and that's a big debate. you will hear a lot about that and he does address the archegos fallout to a certain extent, talking about whether there is a need for more regulation of swaps. i'll tell you what i find interesting about the written testimony. there is no specific recommendations. it doesn't say i am going to do this what he does say, time after time, is i am asking my staff for recommendations on what w

. >>> the chair of the securities and exchange commission gary gensler testified before congress about regulating retail stock trading to protect consumers from trading surges. he talked about how r

. >> well that's right, and what gary gensler is talking about is we actually have to have some regulatoryhatsoever and obviously as retail investors get more and more sucked into this thing, you know, the potential for losses is pretty severe, particularly because now, you're also encouraging or there's proliferation of derivative trading on bitcoin and other cryptocurrencies. you're not just talking about hundreds of billions or million s of dollars of losses. now you're talking some day trillions of losses. this is a pretty serious thing, so i imagine yes, we're going to have some oversight of it, whether frankly the authorities can really track transactions through cryptocurrency as efficiently as they pretend they can, really doubt and i don't think the chinese can do it either, so that's going to be a real challenge and i don't know where we come out on that actually. i don't know how that's going to resolve. jackie: i want to switch gears for a moment and talk about the broader markets get your perspective, mike after the minutes we got from the fed yesterday, but we have some encou

. >> gensler, with the projections. have yet to meet, other than dave cody, i have yet to meet a spac that made projections the projections were to lure people in. >> right. >> but the projections are 2026 anyway >> which room were you in the margin call or boiler room >> i think margin call, maybe. >> okay. >> not sure. >> between margin call and boiler room, you have the whole spac, you got the whole spac thing going, don't you >> there was another one maybe it wasn't either one of those. it was the richard gear one. i don't know >> you were so good in margin call you were in an airplane. >> i wasn't in margin call. >> okay. >> wall street >> wall street 2 >> you were in - >> jeopardy? >> i was in wall street 2. >> carl, i know we need to get to rick. at least i think i do. >> nothing beats iron man, my kids still talk about jim in iron man dow is up 252. let's get to rick santelli hey, rick. >> good morning, guys. well an intra-day of 10s gives you a lot of information you know, as we progressed, we had two pops in y

cryptocurrency, china cracking down, gary gensler at the sec looking at scams, janet yellen looking tos are not totally reflected in 37,000. so this is something, i think, you have to keep an eye on. you have to watch the regulation. you have to watch exactly what the regulation says. i don't believe we're going to go -- at least they don't believe, i should say, we're going to go the china route and ban it. jackie: right. >> but still it could be a bumpy ride down -- and, by the way, i'm not saying i agree with this, i'm just telling you, i'm reporting what they're telling me, big hedge fund investors, people that talk to us. you probably know who they are, i'm not saying my sources, but that's the best thing. so, you know, take it for what it's worth or ignore it. jackie: no, it got hot, charlie, and it ran up essentially on speculation and the market that's hot right now. what you're saying makes sense. >> right. now you have regulation that could bring it back, and they don't believe regulation is reflected in 37,000. jackie: all right. we'll be watching closely. charlie gasparino,

stuart: jerry gensler is going to testify at the top of the hour, his first testimony, edward lawrencehen it goes through. beyond that, and push notification, social trading, and would influence trading decisions. he directed staff, and whether standard enforcement mechanisms. and to be disclosed from hedge funds and investors, the ncc will look at payment flows for order flows. that is all about today's topic. the sec could regulate bitcoin if it is ets, market watchers will be listening for any questions and answers to see the sec would allow the etfs to go forward. dogecoin in this hearing. stuart: i can't wait. if they mention dogecoin does it go up or down? we will find out. thanks very much. the dow is up 120 points, 33,351. here's the headline from the wall street journal. democrats are killing the american dream, the american families plan increases individual striving with middle-class entitlement. dan heninger is joining us. i am living the american dream, you say democrats are killing it. make your point. >> they are trying to kill it. the torrents of biden legislation comes

s purview, i think that they have every reason to do it, but i actually think that gary gensler may sayifferent era, but i do think unless the s.e.c. says these are a buying group and they have to follow different rules i think that they have ever right to be able to say what they want, even if you and i may think it may be cockymamy. and there are some who say the hell is coming and the grim reaper and i don't know and they meant really well, the grim reaper and then they bought stock. i think it is actually nefarious than what these guys are doing >> jim cramer. you had a hell of a week i mean you go look at the lineup of what was on your show this week >> very kind >> have a fabulous weekend my friend. >> i want you to have a great weekend. and you know, i just love working you with, okay >> the feeling is mutual >> jim, see you in a couple of minutes with the gang. and coming up right after this, top stocks for your radar, as we make our way towards the opening bell stay tuned you're watching "squawk" on cnbc it's hard to hope, hard to cope with crisis. so we get to work. we mend, f