sec chair gary gensler joins us now exclusively. mr. chairman, welcome to "squawk on the street. what have we got >> good to be with you, jim is a and david. this morning officials from the chinese security registration commission signed an unprecedented agreement with our colleagues over at the public company accounting oversight board. what this means for investors is, this is a step toward compliance for 200 chinese companies in the u.s it's not the end of the road, there's still the chinese audau auditing firms, the chinese officials need to let american officials in the pcob look at the work papers and ensure for compliance with our laws that protect investors. at the core of this is investors having trust in financial statements it is also about a level playing field to ensure that the rules of the road for the u.s.- issues are complied with. it's a step along the way, we hope that the chinese will supply with the agreements the next few months will tell us whether that's true or as my family used to say, the proof is in the pudding we'll see what happens >> so mr. chairman

you're aware that gary gensler of the sec wants a serious land grab when it comes to being the watch dog of crypto. why did you pick cftc over fcc? >> when you look at the crypto world, it is so broad and all kinds of things going on out there, i think almost everybody agrees that these two aren't commodities. so we're working with chairman gensler and chairman denim and i had the opportunity to work with them and i was the subcommittee chair financial services when he ran cftc, but really to get this right so they're going to need to be talking and there's going to be a lot of work that needs to begun. a large part of the crypto industry will be regulated by the sec because it is securities. so we're trying to get this sorted out in a simple way so that we can get some regulatory certainties as the industry wants and very importantly as consumers want. >> industry and consumer plus don't we want to be at the forefront in a safe way with digital money because it feels like that's the next evolution or at least part of evolution when talking about money. benom is the head of the ftc a

these are the people gary gensler somewhere to protect.of talking to us, reaching out to us he filed a motion, his sec lawyers filed a motion to v. voc our standing in court, revoke our amicus status. personally throw me off the case. >> the judge ignored their silly request. basically i'm still allowed to participate. you want to know who gary gensler has time for? met vanguard seven times since being sec chair. why is that relevant? vanguard manages 90% of his 120 million fortune. he can meet them, not us. who is protecting? >> we tried to get him on. by the way before he issued the op-ed to the "wall street journal" we were going, we asked them to do the op-ed, do you i do it in "the wall street journal." be that as it may. we'll give you the floor. why doesn't he have standing to doing what he is doing? he claims all the things are sold as securities. it's a rooten piece of fruit it does extend to the people that holds them. if xrp is a security, because of the way ripple issued it to finance its platform just like you would issue a st

up 6,000% just a few days later -- >> gensler never wants to talk about individual securities. >> how jz? >> the one thing we did talk to gensler on friday that got a lot of play over the weekend was the last question about the fact that the sec is largely working remotely. >> we have tape on that? >> i do. i asked chairman gensler whether we were going to continue to see him in front of his fireplace and why they continue to work the way it did or when their plans were to get back to work i have that. take a listen. >> i think it's remarkable how well society at large, but let me do a shout-out to the sec staff, 4500 people have been able to be effective oversight of the markets in these times. we're largely remote when i came on board in april of last year, we were still actually mandatory remote. we worked with our bargaining unit with the union representatives. we moved to voluntary remote that's where we are. >> a number of people who reacted to that, the idea that they're not coming to the office, but broadly speaking, jim, i know -- i know had a bunch of people over to the hous

seemed like you were a bit peeved about gary gensler.ore pragmatic practicable rules and enforcing them equally. what are you really getting at here? >> any what we've seen is a pattern with the sec, particularly under gary against letter. using orange groves howie test. crypto is new paradigm. the agency is very challenging to engage with. we see lawsuits left and right. precedent of enforcing through litigation. people in the industry want to comply. the cost of compliance is really, really high right now. charles: right. >> the america has the largest capital market for the in the world for a reason. innovators want to build companies in america. charles: right. >> let's make sure the sec help crypto companies do that. that is not the environment. we're in different jurisdictions we can't even sell products in the united states. we need to see a regime for three rules that everyone knows. charles: everyone asking gary gensler to do his job. thank you very much. congratulations, btg picked up the firm. one firm, coinshare investors sho

in april, gary gensler said the reduction could help bring more transparency to the market.lobal news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. annabelle: we are focusing on moves in the bond space, particularly following swings we had in treasuries. the elevated volatility in general. these are the moves this morning, mostly being felt in the aussie bond space. lines we are getting from the st. louis fed resident, he is speaking in new york and saying, inflation can be slowed without leading to a recession, and the fed has developed a scale in what he calls an orderly matter. whether we do see a recession as well as -- is what is top and mind. we saw that in starbucks earnings, the ceo saying investors and high-end consumers are not giving up habits just yet. resilience is coming through in the consumer space. let's take a look at the equity space. slightly firmer start on those comments even though we understand the fed pivot is not around the corner just yet. geopolitical tensions are

gary gensler says this is an important aspect of shareholders democracy.ning to this would say, well, way wasn't this done in the past? well, this is the way it's operated in the past. >> as you said in your reporting, it's a very important change he did say it makes it more expensive, but for the activist, it makes it less expensive, doesn't it >> right. >> this enables the activist to not have to spend as much. >> exactly the s.e.c. did say as much, that it will overall reduce the cost, but if you're a corporation and you're a management, and you don't want this, you want to fight this, it's going to be more expensive to go to to settle which is usually the impetus for settling in the first place to say, okay, we'll give one or two directors. activists can say, i'm going to take this all the way. guess what due to these rule changes, i may have a better chance of winning. that will make it more expensive for corporations. >> i heard you talking with melissa this morning about how one or two on the board is not going to move strategy. >> it depends on who

gary gensler said the reduction could bring more transparency to the market.l news 24 hours a day, on-air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. heidi: if pelosi arrived in taiwan, she plans to hold a joint press briefing with the president in a few hours time. way go to natosha, great to have you with us. i want to get your top line views on what you make of this entire situation. what is the u.s. is hoping to get out of this trip, what further retaliation we may see from beijing? >> it is great to be here. it is the big question, what is the real purpose of this trip? it is a long history of delegations visiting taiwan, showing support for taiwan and the diplomacy that has flourished there. including a democracy protest in tiananmen square. it has been not supported by everyone in washington and now that it has actually happened, i think the speculation has been the most unhelpful part of this visit. heidi: when you talk about the endgame, beijing is not a preferred tactic. the psychological attr

gary gensler said the reduction could bring more transparency to the market. a study in israel shows hospital workers who got a fourth dose of pfizer's vaccine were far less likely to get covid. health-care workers who got the fourth shot in january showed a 7% rate of breakthrough infections compared with 20% of those with three doses. the findings of the latest to confirm the benefits of a second booster against breakthrough omicron cases. president biden has chosen an official to lead u.s. monkeypox response efforts. robert fenton, a regional administration for fema, will be the white house's monkeypox response coordinator. rising case numbers have prompted california and illinois to join new york to declare the outbreak an emergency. total infections across the u.s. rose to a global high of over 5800 on monday. and those are your first word headlines. rishaad: all right. still to come, sebastian discussing how geopolitical tensions slowed and are all taken their tool on taiwan's semi conductor industry. next, we looking at china's path to recovery amid a h

they're just plain different to understand, all of which has led gary gensler to say these kinds of complexducts can present a sneak and potential risk to investors. this is kind of what happens when you get an etf industry looking for business opportunities on top of retail traders. it's sort of the perfect marriage of business needs and people looking for other things to do. >> do you think it's proceeded tore, or does it level of playing field? >> well, that's what the industry says. this is where they say sophisticated investors, but the truth is that it's really difficult to make that distinction. no matter what you say, i've been doing this for years, it's really hard to explain the daily reset. they think after a month you'll be the 4%. that daily reset makes it difficult to track what's going on as a result, it could only be used by professionals, but most of is know that won't happen bob, thank you very much >>> my next guest is picking up some of the hardest names hit hard amd is down about 4% kim, by the way, do you worry at all about the single stock thing? inch i really do if a

gary gensler says that this is an important aspect of shareholder democracy. >> and i know you've beenday how one director can make a difference if you have someone who is loud and pushes for a lot of change like a nelson powell but what about all the other ones that you don't hear about, do you think this will encourage some to be more in-aggressive? >> i think that one thing that we could see is given so much of the voting will be of the merits,n-aggressive? >> i think that one thing that we could see is given so much of the voting will be of the merits,-aggressive >> i think that one thing that we could see is given so much of the voting will be of the merits, aggressive >> i think that one thing that we could see is given so much of the voting will be of the merits, experts say that we'll be looking at personal attack ors personal vulnerabilities. and so maybe it could push activists to have say one or two higher quality candidates that they put forth as a result of this than they have previously because those candidates have a higher chance of getting on the board, therefore -- de

why is gary gensler doing that? great question.w, from the recent supreme court ruling, epa versus west virginia that administrative overstepping your administrative role as an agency will cost you and what we hear now is yes, 17 states with something called the national center for public policy research, it's a conservative group, they sued. they are in courts right now, but there isn't a lawyer i speak to that doesn't say that advantage goes to the plaintiffs on this one. not the defendants, which is the sec essentially. that this thing is taylor made for the scotus precedents on epa versus west virginia which is saying you're the epa. you can't overstep your bounds. yes you can create standards but there are certain things that are distinct. certain things that go one step further. david: in other words it should be done by congress. charlie: and the will of the people, so that's what it's saying and by the way those things are very distinct. you can figure them out. we don't have enough time to go through all that but that shou

i interviewed gary gensler, chairman of the s.a.c. he was honored to announce a deal with china, where their companies would finally play by our accounting rules. maybe that is the first step to making chinese stocks into something more than a worthless parlor game. in the end, i asked if he had had a look at all the new crypto coins trading on these exchanges. he was circumspect. so, i went one step forward, and asked what would happen if my colleague, partner, buddy david and i created a coin, took a lot of it out, and listed in a classic front run pump and dump. he said we would need good lawyers. now, i don't mean to pick one, but coin base had more than 200 tradable coins. i am not exaggerating when i am saying they seem to be changing by the hour. from the look of things, i think a lot of people in the crypto ecosystem should be hiring very good lawyers. some of these smaller coins do seem to lack the class of -- yeah, that legendary boiler room pump and dump shop and occupied a couple episodes of the sopranos. but now, the big

chair gary gensler has said, quote, this is an important aspect of shareholder democracy. scott?vid discussing earlier whether, you know, one or two people, if they win a vote, would make a difference on a board. i suppose at the end of the day, you know, a couple of voices in the room for an activist are better than none. >> that's right. i mean, well, for an activist, they can go back to their limited partners, they can g back to their investors and say, you know, we have significant from you >>> and coming up, two stocks hitting new lows, one is a dow stock down 20% trades are coming up next. (vo) hi. we're visible. a different kind of wireless company... ...running on a big impressive wireless network. how are we different? we exist only on your phone. so you get unlimited data for just $30/mo, taxes and fees included. plus we have a new plan with 5g ultra wideband. switch today at visible dot com. your shipping manager left to “find themself.” leaving you lost. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching

. >>> sec chair gary gensler has warned that there is plenty of n non-compliance in crypto joining usrypto regulation state is former sec chairman and cnbc contributor jay clayton. in today's op ed, let's talk about this there's been so much frustration on why it's taking so long to get a regulatory framework for crypto currencies. what's going on? >> it's an effort to be just that why is this so hard. and look, there's a number of factors. i think if we understand those factors, we're going to do a better job of moving forward, which we need to do. i'll start at the end. it's the technology underlying the crypto revolution. it's so compelling, from an efficiency standpoint and a certainty standpoint the problem is, how do we get there? and there's a lot of factors that have driven the difficulty of this. one is pure emotion. and people on both sides of this debate have plenty of evidence there's been plenty of fraud, and, you know, chair gensler writes there's plenty of noncompliance. people on the other hand seat posee th power. raising money is largely an institutional exercise we

gary gensler getting into this discussion, the s.e.c.ting a wing that the crypto march -- arguing that the crypto market should be treated the same as the rest of capital markets and crypto firms comply with securities laws. what is your take on this and what are you expecting from new regulation coming for crypto. >> it's interesting because the s.e.c. has underacted and over-acted in some ways. the industry is still waiting and has been asking for years for the definition of what's called a good control location for a digital asset and once that's defined, then the industry has something that it can adhere to but while that's not defined, virtually no one has been able to get through to get approval from the s.e.c. so far even those that have been asking for permission to be able to become a broker dealer or ats. in some cases the s.e.c. has not acted fast enough on the fraud and there's been rampant fraud in this industry and part of that is because of the vacuum created by the slow actions by the regulators. cheryl: a lot of crypto f

. >> maybe we'll get gensler >> he has subpoena power >> what do you got tonight >> i have pioneer, in. >> scott sheffield. >> and then dr. steve paul everyone always claim they have something for schizophrenia. i've spent a lot of time -- host of the american brain foundation gala, and i would love to know what he has. >> the american brain foundation or the american migraine foundation >> yes i'm on both. we're tackling alzheimer's, some of the worst versions. we do great work, and, you know, you don't ever want these things, but we just have to keep trying to raise money. i'm very proud of both institutions. >> as you should be. >> i'll see you later on mad. >> thank you. >>> we have more on retail for you. keep it here (vo) hi. we're visible. a different kind of wireless company... ...running on a big impressive wireless network. how are we different? we exist only on your phone. so you get unlimited data for just $30/mo, taxes and fees included. plus we have a new plan with 5g ultra wideband. switch today at visible dot com. new projects means new project managers. you need to hir

acceptance from the regulators of having these institutions >> so then you agree with sec chairman gary genslerson to treat the crypto any different than the rest of the capital markets. he uses his car analogy. even though we've progressed to electric cars and other additives we see in car, doesn't mean we can't keep passengers and drivers safe and we shouldn't enforce things like seat belts is crypto so specialized a product it needs specific rules or it should be looped in with any other type of security >> i think it's a little bit hopeful to think that we're going to go from scratch to a whole new regulator. even though that is a perfectly fine outcome for this. in fact, potentially for many people, the ideal situation. the reality is that the technology is significantly different. there are things that crypto assets and currencies do and are add its most basic foundational level. they are significantly different from traditional assets and asset classes. so there's a lot of reasoning and logic behind the fact we should have a specialized type of regulators for crypto so that is not actual

whether this is constitution alleyed aring a letter to the sec saying this in a statement, quote: chair genslernsform our entire economy through administrative action by an unelected commission is unwise and even dangerous. the sec should immediately reverse course on this ill-advised proposal to save taxpayer dollars on fighting this in court. but biden groups disagree that the sec's proposal would lead to a blacklist of fossil fuel companies. the campaign manager saying this in a statement is: wall street banks are the largest funders of fossil fuels in the world. the bizarre notion that banks are boycotting energy companies is just the latest flavor of climate. denial cooked up by extreme politicians and their fossil fuel industry the donors. it's part of a broader attempt to prevent free market businesses from addressing urgent, climate-related financial risksment but some republicans are prejudicing to get answers -- pledging to get answers from the sec if they take the majority many november. >> the goal of the house financial services committee and congress should be to push back hard ag

meetings in person where they could always vote for their preferred mix of candidates jer' jerry gensler i would think if they gain one seat, it's hard to effect change with one person yes, i agree it's a good step in their campaign as opposed to losing entirely. but the impact won't be that great. >> oh, yeah, absolutely. one or two board seats in a ten-person board doesn't necessarily move the needle too much in terms of strategy, but when if comes to kind of winning and losing, you know, an activist can then go back to their lps and say we got one or two people on the board. they're a vocal member of the board. they're well-respected they're going to have to hear our ideas in the boardroom more than if we were shut out entirely from the management standpoint, they don't like losing one or two board seat this is a big game changer for them as well >> thank you >>> still to come, member of president biden's council of economic advisers will join us plus, we are expect being the latest adp numbers s stay tuned. you are watching "squawk box," and this is cnbc ♪ ♪ wow, we're crunching tons

this highlights how gary gensler's sec is increasing enforcement in the wild west, as he called it, ofigital asset markets. stuart: do we mow if the money is gone? -- know if the money is gone? heroin lauren lauren they're still looking for some of the people, 4 of the 11 charged. stuart: next one for you, big tech ceos warning their employees you better improve your performance. meta and alphabet. lauren: we saw this coming. both ceos are turning up the heat on employees' performance, and reuters heard some audio from mark zuckerberg after last week facebook reported their the first ever decline in revenue. he told staff, look, we're raising expectations for you, setting more aggressive goals. typically, that's the first step, you know, that predates layoffs. and this is what happens when the economy slows down. and if these are calls from big tech companies with a lot of money, meta and alphabet. stuart: they used to be such cool company to work for, they'd do everything for you, dry cleaning and babysitting. lauren lauren this is how the strongest are among us, if they're responding

jackie: mark cuban slamming securities and exchange commissioner chair gary gensler's stance on crypto crypto lending finances, why don't you just publish bright line guidelines you would like to see and open it up for comments. bruce, your reaction to that, cuban and investor -- >> cuban's right. the s.e.c. has made this show of saying that they're reaching out to people. i own an s.e.c. registered broker dealer. i've been s.e.c. registered for 30 years. i've been in crypto for nine years. let me tell you, they are not helping our industry. they're not clear about what the rules are. they're just trying to expand and expand and expand and get more power and do photo ops and things like that. it's completely against free markets and american principles. people should be able to do whatever they want and invest however they choose. the s.e.c. just hasn't been efficient p at all in making the markets better so i think it's time for a total overhaul. we don't need more regulations. we need more freedom. freedom is what makes america great. that's what we need now. jackie: actually, we've

eventually be just what we need to remove the uncertainty or just looking -- i saw a piece of gary genslerhe's serious. he's serious about a lot of things in terms of the s.e.c. very activist, in i don't know whether the regulation is going to be the panacea for crypto. >> joe, first of all, let's define some terms. regulation does not mean suing people, and the approach s.e.c. has had for the last couple of years has been to not tell anybody what the rules are in advance but to sue people after they've launched a project, started a company, list add token. and then caused people to infer what the rules were later. that's not a good thing, and so at some point congress and the regulators need to get serious about telling people, you know, what is the speed limit on the crypto highway, and what projects are appropriated good once we set frameworks and rules for those things, you'll see a flourishing. until then, you're going to see a lot of people very nervous about investing in the space. >> does that have anything to do with the chart you're looking at right now or is that just a chart yo