security and exchange commission chair gary gensler launches a full offensive against crypto industryy is fighting back and using judicial system to do it filing a lawsuit, charlie guess karina is next with the ceo of that company. investments, michael sonnenschein closing bell 17 minutes away. dow falling 369 points. volatility climbing about three and a half%. ♪ it has been a rocky start to the year for crypto as u.s. regulators embarked on an industrywide crackdown in the wake of laster's collapse of the now defunct crypto exchange ftx. within the last few weeks chair of the security exchange commission gary gensler brought enforcement actions against u.s. exchanges cracking in gemini as well as brokerage genesis. genesis parent company digital currency group also owns a company called grayscale investments, major digital asset manager. the manager is ready to fight back against gensler over the decision to deny the conversion of its great scale but coins just into a spot bit coin etf. here to unpack all of this and explain what's going on in a foxbusiness exclusive ceo michael son

gary gensler spoke with bloomberg today.lending platforms, crypto staking service, they need to come into compliance and they are generally noncompliant right now. investing public is not only at risk by the speculative nature of crypto, but they are at risk of ending up in line at a bankruptcy court because a lot of these platforms are doing things they are not disclosing. kriti: that is gary gensler speaking earlier on bloomberg television. the crypto story is fascinating. 2023 was supposed to be the year we get the digital dollar, potentially the digital euro and the digital yuan. i wonder at what point that gets factored into the crypto market at the same time folks like gary gensler are making a tougher call on crypto. jon: it is a important question. i think the reality is, gansler has been pointing towards this for some. -- for some period of time. the new york stock exchange is not allowed to run hedge funds and trailing exchange through them, what should be the rules of the road surrounding crypto platforms like cra

what does it mean for gary gensler's plans to overhaul the esg and trading this year?question and charlie breaks it down next. ♪ as a business owner, your bottom line is always top of mind. so start saving by switching to the mobile service designed for small business: comcast business mobile. flexible data plans mean you can get unlimited data or pay by the gig. all on the most reliable 5g network. with no line activation fees or term contracts. saving you up to 60% a year. and it's only available to comcast business internet customers. so boost your bottom line by switching today. comcast business. powering possibilities. the eagle has landed. that's one small step for man... hey, what's up? uh... houston... we have a situation. how did you get here? you're characters in our video game! video game? yeah, it's what we do with xfinity 10g. it's like, you know, the best network imaginable. what the heck is that? those are the bad guys. are they friendly? the 10g network, only from xfinity. one giant leap for mankind. wall street's top cop facing an alarming exit of vete

my producer gotten wind of latest iteration of this broad crackdown by gary gensler. a minute. this one targets stable coins. according sources close to the matter they're telling ellie the sec intend to send wells noticet they failed to register as securities. now we should point out that wellses notices are the notices you get from the sec enforcement division essentially alert they will recommend charging you with securities fraud. you have essentially 30 days, 90 days to talk them out of it. nine times out of 10 you don't talk them out of it. they send a recommendation to the full commission and you're charged and a case is brought. that is where we are right now. this is pretty amazing. this comes amid as i said before, liz, a broader crackdown on crypto again some industry participants are saying armageddon like. they don't think there will be much of crypto left when they're done. gensler will likely get blow back from the gop in congress, crypto, underlying digital technology, the blockchain technology could be the new internet and with that his crackdown is s

chair gary gensler will be our guest.ainst kraken and crypto staking. "squawk box" will be right back. >>> time now for today's aflac trivia question. blue ribbon sports is the original name for what publicly traded company e answer when cnbc's "squawk box" continues ga-a-a-ap! oh... hi. what's this, a hospital bill? mm-hmm. for 1,100 bucks? ga-a-a-ap! looks like your wallet may need a sling too. tell me about it. did that goat say "gap"? he's talking about expenses that health insurance doesn't cover. eh-ehh-eh! well i'm talking about the money aflac pays to help close that gap. aflac, huh? aflac! ga-a-a-ap! aflac! gap... uh-oh! that duck can motor! get help with expenses health insurance doesn't cover at... aflac! ...dot com. >>> now the answer to today's aflac trivia question. blue ribbon sports is the original name for what publicly traded company the answer, nike >>> with ev cars -- ev cars, electric vehicle cars, okay, i guess different than just ev trucks, now averaging $60,000, it is no surprise what some are will

it is likely to pass with gary gensler's vote and two democratic commissioners.k loose. here is what the republicans are doing, what our sources are telling us, all this kind of information. did you study impact on oil prices? dud you study if this infringes first amendment rights? you're asking companies to go out on a limb to give opinions how their operations impact the carbon footprint. they're asking for him to disclose the time frame on how you came up with these rules and they're kind of laying the ground works for private litigation. i will say this, i spoke with people at blackrock, i spoke with people outside of blackrock, i spoke with people on the hill, i spoke to legal experts, john ellison, a corporate, professor of corporate law at delaware university, one of the foremost experts on this stuff. they all say this thing will be challenged. republicans are laying groundwork with this investigation and it is very highly likely, maybe, 99% likely it is going to get overturned. here's why. normally corporate disclosures liz involve, tell me about profits

this week what impact do we expect for key players in the space >> reporter: chair gensler introducedweeping changes to which crypto changes can access customer assets. the s.e.c. voted wednesday to propose amendments and expand to crypto and require major companies in the sector to gain or maintain registration to hold the customer assets. this is key because it is the s.e.c.'s most overt effort to rein in crypto exchanges with constitutional custody programs. this comes as federal regulators discourage banks from holding assets this is part of the acceleration of the regulatory crackdown on crypto post ftx. >> you heard charlie munger on h it >>> back to the bitcoin bump i point out it is up 2.5%. you have ethereum up 1.75% let's check on the other top headlines with phillip mena in new york phillip, it seems anybody wants to talk about what is flying over the skies >>> that is the big story. it has been for some time now. good morning, contessa president biden could deliver a speech today on those unidentified flying objects. three people familiar with the matter tell nbc news that

we welcome gary gensler

chair gary gensler calling out the industry explicitly saying their current practices might not meet some of these new requirements in a statement gensler saying today's rule covers a significant amount of crypto assets and those crypto platforms may claim to custody investors crypto that does not mean that they are qualified cust custodians coinbase responding saying after today's s.e.c. proposed rulemaking we are confident it will remain a qualified custodian an assets are segregated and secured as well coinbase custodies billions of dollars including sales seen as a key part of its business especially as other revenue streams like trading slow down and the stock is mentioned you mentioned, despite this news an analyst i just talked to said objectively bad news for bitcoin pap bit of a head scratcher. more likely a short squeeze. coinbase among top ten most shorted names not really trading on fundamentals today. up more than 14% back to you. >> great point a few others as well, kate no real catalyst other than that stat kate roone o', thanks. >>> as the s.e.c. reins in one trading

i happen to growth chair gensler most crypto currencies are securities saving the test. there are some crypto currencies i was in bitcoin as an example that are decentralized enough they are commodities. cftc regulates commodity sparkrk markets. they don't regulate commodity spot markets only derivative markets their fraud manipulation enforcement and commodity spot market. so that is the gap that needs to be addressed. so it i recommend and i have this in my testimony is that congress carved out crypto currency from commodity and crypto currency as a new category of security on a securities law so it's clear to everyone to the market and everyone else the scc has exclusive rulemaking authority andes jurisdiction over crypto currency m. >> professor yang? any views on this? >> thank you so much senator menendez. i think one of the main things you have to thinkwi about how to view, at least in make the private industry accountable and make private industry responsible for it i set out to my written testimony ultimately the most important institution in the economy are the

so when chairman gensler was on your show, you addressed this. other staking services available right here in the u.s. the chairman says they're all on notice, but as we sit here and speak today, they're all up and running. so maybe they all end up getting shut down, we don't know it's tough for us to comment but one thing that will not happen is all of the staking companies that are running across asia and parts of the world will continue to run, and we know firsthand that many u.s. customers, u.s. users, go to these services offshore and what lo and behold happens is that many of these services are in jurisdictions with no regulation, you know, companies that are not interested in a regulatory forward approach. and what happens through all of this, who are the losers the american people. so they lose opportunities to participate in this innovation and end up with, you know, just a really, really suboptimal outcome. >> but dave, who should be responsible for that piece of it because any american who is going on these international services, i im

it has not come to the grip with the fact gary gensler reiterated he believes one coin is compliant andbitcoin. eater or rest of them. liz: we're in the green. dow is on pace for the longest losing streak in nine months. we're talking about weekly loss streak here. down for the last four weeks. we have the dow up 97 points. s&p, nasdaq and russell and transports. transports just flipped back into the green as well. palo alto earnings. palo alto network earnings are providing a serious boost to cybersecurity names. alpo al toe up 8% this week. gaining 2% yesterday after a big move. z sailer tripped back into the read zscaler. zscaler has seen a very nice move, erasing losses. you can see the huge jump on wednesday. crowdstrike is up 1 1/2%. as we see right now it has reversed just a bit, down just about a quarter of a percent. they are moving targets here. our "countdown closer" says, you know what? put those three aside. there is a cybersecurity stock he is absolutely betting his, her chips on i'm so sorry. good to see her. eva, coo entrepreneurship shares. what is the name any know it.

sec chair gary gensler said the changes would make markets more resilient, orderly, and efficient.bal news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm simone foxman, and this is bloomberg. manus: simone, thank you very much. mike norge says it can still make it to $25,000. he did say that it could make it to $500,000. andy halford is going to chat to a(jennifer)d is going to chat to mthe reason why golo customers have such long term success is because we focus on real foods in the right balance so you get the results you want. when i tell people how easy it was for me to lose weight on golo, they don't believe me. they don't believe i can eat real food and lose this much weight. the release supplement makes losing weight easy. release sets you up for successful weight loss because it supports your blood sugar levels between meals so you aren't hungry or fatigued. after i started taking release, the weight just started falling off. since starting golo and taking release, i've gone from a si

sonali: the statement from the sec chair gary gensler in the crack and settlement with very broad. whether staking is a service, lending or other means, crypto intermediaries, they are offering contracts in exchange for investor tokens and they need to require proper safeguards by securities law. he is bringing the staking business under the securities in bella. a commissioner also said that she disputes what happened here today. but because there should have been better guidelines from the beginning. that has been the industry calling card. this at the guidelines first, then let us follow them rather than finding us for not following guidelines we have not said. caroline: excuse me if i am going outside your field of purview, but i feel like you cover it all. what is the rest of the world think about staking, ultimately question marks and ali: i think if you are an individual investor that want to be more into crypto and invested it is a difficult calculation. in theory, staking should be allowing more people to get in at scale, especially, if you work through a service like coinb

earlier we caught up with gary gensler. take a listen. >> this significance is there is a business model and crypto whereby, i will call them storefronts. they are intermediaries. they asked the public and solicit the public for funds, for the crypto and say we will give it to you every -- give you a return. they may call it lending, in this case is called staking as a service. 4% 8% or even 21% turns. there in lies the issue. they are doing this without the proper disclosure. the investing public us to decide what risk they want to take. the question is, was cracked and -- kracken were others who do this during what they set on the website or where they lending them, trading against them, running other business models. the disclosure is critical for the investing public. david: my understanding is that kracken can no longer do this to mystically in the united states for u.s. citizens unless they register as a security. does that break the business model? does that mean they cannot be in the business? can they come back and

offering that service as well it's meant to include other asset types, not just crypto, but gary genslerof these new requirements in a statement, gensler says today's rule covers a significant amount of crypto assets, and though some crypto platforms may claim to custody investors crypto, that does not mean that they are qualified custodians spoke to coin baste's chief legal officer about this he says right now, they're willing to fight >> we're not looking topoke th s.e.c. or any other agency and i would much rather have, frankly, conversations that are part of a formal process but unfortunately, you know, in certain situations, we've faced regulators who are very eager to make a public display of their regulation by enforcement campaign and even create shortcut videos and other content that seems to take -- want to take the conversation beyond a productive dialogue and make it much more about a fight. we don't want a fight. we're prepared to fight if we have to. >> david, back to you. >> all right, yeah, we can take a look there at coinbase shares, they're up 9.7%. i'll let "tech check

sec chair, gary gensler said the ages from 2024 will make markets more resilient and orderly.ews 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm alice atkins. this is bloomberg. francine? francine: thanks so much. coming up, we will look at what is next for scottish independence after a shock resignation. that is next. this is bloomberg. ♪ francine: welcome back to the open. 52 minutes into the european trading day. we are holding strong with gains of .4%. the cac 40 thanks to a particular company that has made and come up with better-than-expected earnings is gaining .7%. let's take a look at the events we are following today. another big hitter for american data. we get u.s. ppi at 1:3 zero p.m. u.k. time. we have a ton of fed officials speaking following that. cleveland said president will speak in florida. at 3:00 st. louis fed president will discuss the economy in jackson, tennessee. in london, the ecb chief economist speaks at 3 p.m.. don't miss any of those conversations. what is next

of an innovative thing and kind of a food thing although anytime you put yourself in front of gary genslers asking -- >> what the ceo at coinbase did. he kind of poked the bear, did he not? >> yes. he did some sort of bank account thing where -- liz: it was high yield accounts. >> yes. liz: and as i recall he said, you know -- >> if you do that let us do it. they said if you do it we'll sue you, right? wasn't that essentially -- so just remember going before him but clearly brad katsuyama, "flash boys." liz: high frequency trading. >> protagonist for that. he thinks there is market here for a crypto exchange that is regulated, that does not give you, does not have the holes in it that ftx had from a regulatory standpoint. liz: probably right. >> coinbase, if you talk to crypto people that seems like a logical place to go. they are public with audited books. the problem with ftx there was no audit. liz: why would they audit? can you imagine no audits? no accounting? >> there are probably, i say probably i haven't investigated coinbase's operations but i'm sure if they're publicly-traded eve

on t crypto sector saying theres a need for a strong regulatory framework and then you've got gary gensleron for the market in terms of who is going to be in charge of this regulation. jump in here, liz. >> i think that's right. a number of agencies want to have control including the commodities group. my question is, there's also while they're talking about regulation, there's also talk of a national digital currency. do you think there's any of that a poe he ten shale in the future -- potential in the future? are we going to have a u.s. cryptocurrency? >> well, i mean, there's no question that this technology is here to stay. and it doesn't just affect currency or securities. it's a new style of database that affects everything. so the idea that this fits into a one size fits all regulatory framework is failing to understand the basic utility of this technology. and clearly regulate res are vying for power, whether it be the securities and exchange commission or the commodities regulators. so it's a matter of looking at each of these use cases and making sure the appropriate re

gensler really hammered kraken, said no more lending of crypto. it's not a law yet for everybody. and i am going to do it for everybody else. and then this morning we hear the regulator in new york has basically shut down the minting of binance tokens. there are $64 billion of binance tokens held in two wallets. well, i wonder who owns those? if one of those people wants to sell, that's binance down the drain. it's going to get very interesting. >> real quick, you said that you would do everything -- because you are a spokesman for the sam bankman-fried, ftx, do everything to track down the money. have you made any progress? >> it's the narrative on the situation for everybody is around recovery. we heard about 4.2 billion, another 400 million of cash. where is it? we need the regulatetory give us the data. >> you said you would work with him again? >> no, no. that was long before -- i have been known on "shark tank" for a decade i will give money to catastrophic money to experience for failure, not when you are involved in an alleged fraud. >> i want to talk about this tweet on s

you saw gensler make a move last week.y a lot of people including people like me who want to see regulation. we want to see some guardrails. i'm tired of going to the hill for hearings every six months for the next crypto company that blows up and goes to zero. everybody is sick of that. it's now time for regulation. ashley: i hope you can get some of your money back, kevin but we do appreciate you being on the show today. always forthright and to the point and we love it. kevin o'leary thank you very much. >> thank you. ashley: now this. the kansas city, oh, thank you, the kansas city chiefs we know they are the super bowl champs. one of their quarterbacks is now retiring. we'll tell you who that is. meantime, a nurse is making millions of dollars by selling her school study sheets online. this is a great story. she never intended to make money she just wanted to pass per classes during covid. that nurse, with an amazing story, joins me next. ♪ ♪ if you have diabetes, then getting on the dexcom g6 is the single most impor

it was up to 21% as gary gensler put it this morning on "squawk on the street," he said this should putryone on notice, this type of offering. staking is something coinbase has on its platform. coinbase ceo brian armstrong tweeting ahead of this he said, it would be a terrible path for the u.s. if that was allowed to happen. he also said, if regulation by enforcement doesn't work -- or he said it doesn't work and encourages companies to operate offshore, which is what he says happened with ftx. i caught up with coinbases chief legal officer who said coinbase's offering is not a security he said the s.e.c. doesn't have jurisdiction he also says they tried to engage with the agency to no avail and that a lawsuit is on the table. he said, we're not eager to go to court, but we believe that the law does matter. if we're not able to resolve this -- these matters through an administrative process unfortunately, sometimes courts have to be involved. coinbase's staking business makes upabout 3% of its revenue. you can see shares down sharply this week, dee. >> just how difficult it is for them

gary gensler, folks, i mean this saying can he survive the bankman-fried blowback? not just d.c.ors. sam bankman-fried did not hoodwink silicon valley. i mean they would have been better off saying, this is a guy who went to 56,000-dollar a year prep schools in silicon valley. made a lot of friends with people who worked in the industry that would be a better excuse. but to suggest somehow he wowed them, charmed them, walked in with the birkenstocks and not hair combed and they pulled out money. they couldn't help it. they gave him everything. these are the people that do the most rigorous due diligence on the planet. they were not hoodwinked. i think the bottom line they didn't give a damn. you know what? they knew you, main street would be the ultimate dupes. there is also a ivy leagues connection to this thing that smells like a rat. i keep saying to prosecutors, drill, baby drill, keep going. speaking of dupes, sbf promoted as carrying philanthropist into all these woke causes. he really didn't care. so it has been my hope from day one on this case that it wouldn't devolve in

we had gary gensler on the program on friday after that announcement and there seems to be a real sense watching our broadcast and others please come in, register, come on our website, tell us what you're doing, and, you know it will work or i don't know if he's saying it is going to work, but he's saying that's the temporary solution how do you see that? >> yeah, you know, there are a lot of forms on that website and it is not super clear if you're going to offer a service for customers. which of those forms to fill out, and how that is going to be regulated. what we need to do is figure out how to either do an entirely new set of forms or translate the old forms to the new network it doesn't simply work to come in and register and so, yeah, the fact that gary gensler says that is incredibly frustrating from those of us in the industry who want to be compliant, but you just can't do it within the way that the current structure is set up. so, you know, i think with something like kraken, it is even more frustrating with the settlement because that settlement provides guidance for that s

i don't find a lot of comfort in knowing that mr gensler thinks he has full authority to implement a regulatory regimen because i think he's been going a little bit too fast and a little bit too expansive on rule making which is why i hope that congress will act so that we get this right so give me some ideas on singles and doubles. >> so i appreciate the question senator you know frankly proof of reserves aren't worth the paper that they're written on. and i would just point to the so-called proof of reserves that binance had from mazarus until mazzers pulled it off of their website and stopped doing uh any work for for crypto. >> is the is proof of reserves not a worthwhile pursuit. >> so audits are worthwhile so i think no so i think audits are worthwhile pursuit and i think that is a single um certainly that this congress should look at there's no reason that crypto intermediaries exchanges should not have full audits proof of reserves are not full audits we were talking about an independent third party reporting to the treasury so i think that may address the the point you were

sec chair gary gensler says that changes will make markets more resilient, orderly and efficient.ed by more than 2700 journalists and analysts in over 120 countries. i'm vonnie quinn this is bluebird. haidi: let's look at the aussie following after the jobs number. we've seen aussie traded around the 50 day moving average sideways and this could be the break factor with that unexpected decline in january jobs numbers. of course, this is one of the strongest performers in the g10 space. we are seeing some support. jobs numbers, the economy shedding jobs a second month. this adds to signs of potentially the australian labor market finally showing signs of cooling and vulnerability in response to that aggressive tightening cycle and nine consecutive rate hikes. the jobless rate hike climbing to 3.7% with 11,500 roles cut and the participation rate edging lower as well. the number of part-time jobs increasing so underemployment beginning to be a real trend for these numbers. more to come here on "bloomberg daybreak asia." this is bloomberg. ♪ -hey david connect with an advisor to crea

those conference calls where i just said, oh, i see, there's a new sheriff in town it's not gary gensleroinbase. they -- i mean, john stark used to be a big regulator, has a nice little mention today in twitter. yes, he's a crypto regulatory carpet bombing continues next up, stablecoins that's the exact opposite of what coinbase wants. david, i don't know. you can take coinbase, you can take the s.e.c i always say that in the end, the s.e.c. wins. >> thank you >> you're welcome. >> let's get the opening bell here in the cnbc realtime exchange at the big board, health care focused strawberry fields celebrating its uplisting. on the nasdaq, the cast of peacock's wbel air, one more reason to watch peacock, guys. >> yeah. exactly. >> although i know you're watching "the last of us" right now. when you're done with that, move on to "bel air >> yellowstone is on peacock, right? the original one with kevin costner. i'm watching that. there you go all right? good i get to stay. i get to stay another day. do you watch any peacock >> oh, constantly. >> that's all he does. >> yeah. >> jim, holding

we talked to gary gensler from the s.e.c. on friday what is your sense of what the s.e.c. and where do you think they're going to land >> what they proposed is totally nuts i wrote a long comment letter on it a lot of company public ceos won't do that, but just making an enormously complicated expensive reporting thing so people can sue us because they think we didn't properly estimate our scope 3 emissions, which is the product we produce. someone else burning them on the other side of the world, other side of the country, no one can really account for that. why are they doing that? they're doing it so this administration can signal they're against fossil fuels that's unproductive. >> when your linkedin post went down tell me what happened. people talk about censorship all the time, who should be the arbiter of truth and all of that >> yeah, crazy i immediate that sort of amateur video, but just talking about energy, climate transition, just some basic data so you can get background on it, and it was taken down for misinformation. i heat the appeal the decision button, an

saying this is how it is going to work, be and that has not happened w and we had an s.e.c., gary genslere crackdown on kraken, you know, there are selective enforcement mechanisms, i think he's trying to tell the market different things without actually putting rules in place, in part because i think he doesn't want rules, he doesn't know what the right rules should be or zdoesn't thin they could be implemented in the right way. >> there is a lot in that. i think in the west and in most developed markets or market centers, there is a lot of movement on this and in fact the u.s. is the -- is one of the last to move so, the eu, comprehensive, the uk, comprehensive, hong kong, singapore, japan, uae, a lot of these places are providing legislation, the legislative bodies are doing the work. it is work to say, okay, what are the statutes going to be -- >> not signed up for all the same some of them have not voted on all of this stuff in the right way. not in the right way, just at all. there has been stuff that has been proposed. >> sure, well in the eu, it is rolling through. in the uk, it i

director chopra to testify later this month and i would hope that the chairwoman also invite sec chair gensler to testify perhaps as a part of the upcoming ftx hearing. in the last 133 days we've had only one hearing that included witnesses from the biden administration which i believe is a a dereliction of our duts members of congress to conduct oversight. i hope that changes in a few weeks, and i'm confident that it will and that will be seeing a lot more government officials as witnesses before this committee. i think the time is limited to want to dive straight into my question. dr. holtz-eakin, earlier this year we held a hearing on the biden administration's task force which was graded based on anecdotal evidence to address discrimination in home appraisals. the task force did not conduct any new research. also fail to include dissenting opinions on the subject about the contested and limited body of work on a an appraisal by. >> setting aside whether or not it is wise to make policy decisions ace on anecdotal evidence i am curious about your thoughts on one of the task force's recommend

i would hope that the chairwoman would also invite fcc chair gensler to testify as part of the upcoming ftx hearing. you know, in the last 133 days, we've had only one hearing that included witnesses from the biden administration. i believe that's a dereliction of our duty as members of congress to conduct oversight. i hope that changes in a few weeks, i'm confident it will. and that releasing a lot more government officials as witnesses before this committee. saying that time is limited, i want to dive straight into my question. dr., earlier this year, we held a hearing on the biden administration's paved a task force, which was created based on anecdotal evidence to address discrimination in home appraisals. the task force did not conduct any new research. it also failed to dissenting opinions on the subject about the contested and-limited body of work on appraisal bias. setting aside whether or not it is wise to make policy decisions based on anecdotal evidence, i am curious about your thoughts on one of the task force recommendations, which is to require fha lenders to track usage a