caroline: and a conversation with gary gensler about his concerns over artificial intelligence. silver gate continues to plunge after concerns. first, let us look public markets. i want to dive in on the macro, not just crib go. the nasdaq is up. this is so macro focused. one of the key fed voices has come out and said we could to see a pause in interest rate hikes. china was a little bit of a drawback. the two year yield is flat. let's get to the world of crypto. the dollar resolutely higher against most today but in the last couple of days crypto held onto a gain. relative stability but players within the space are getting attention. ed: everyone is using specific assets as a lens. we will talk about macy's later. we had some big technology names report after the bell. dell down 3.24 percent after being significantly higher against expectations in the fourth quarter. they announced a new cao. -- ceo. narrative is driving the stock up almost 19% for c3 j. there is demand and outperformance relative to what we see some industry peers. and outperformer. we are up modestly higher.

>> give gary gensler the benefit of the doubt a little bit.g. we have a lot on our plate including the stuff that is very controversial that they will bust our nuts about, excuse the language. sorry about that. but i'm telling you, this has been done every year. you do want the securities industry to know where you're going with stuff, right? you kind of want jpmorgan to know what -- liz: transparency. >> you want brokers to know what is high on the agenda, so they can prepare for it. you know, if you're going to crack down on crypto even more what type of crypto you cracking down on. nice to know if you can comply with sec rules. this is something everybody wanted to know that. it has been canceled. it will continue to heighten the controversy surrounding gensler's agenda, particularly the controversial parts. there is two big controversy eel parts before i denned. this is where the comment letters are pretty caustic. market structure, people are worried it will actually increase fees and increase costs to small investors upending that whole

gary gensler is on new ground here. which generally man -- mandates investors, things of earning, talking about the environment, is not their province, never was. cheryl: sounds political. >> will be highly political. you see my point. there is something called scope one of the disclosure, scope two, scope three, is everything includes supply chains. scope two is literally if you get energy from a polluter, a colburning plant, you got to do that. scope one is what you do yourself. if he went to scope one, just did that one he might be able to avoid lawsuits from the chamber of commerce, from the energy industry, which he will likely lose. at least a lot of legal experts say. so we'll have to check to see how far. from what i understand he dumped scope three. that's done. you won't have to disclose what's down in your supply chains. the question is, does he get rid of scope two, which you're a business, any business, for foxr example, we get energy from plants burn coals not just fox, any company. you can see how that co

she's an architect with gensler. we're talking about the issue of transforming san francisco office spaces into housing. how difficult a task is that? >> it is complicated, right? i mean each building is highly bespoke and very unique, and so it really warrants a close study on each building to make sure if it can work, right? we're looking at things like the overall form of a building, the floor plate, its location, its facade, how much natural light does it get? so it really is complicated. and, you know, bay area construction costs are obviously very high, and conversion is expensive. and as you pointed out earlier, it's not easy to get projects through the city, so there's a lot of improvements we can do across the board to make it easier. >> so when you look at a building, what are you looking for that's an absolute yes, and what's a resounding no, this kind of structure won't work? >> right. great question. i mean form for sure. you know, the simpler the shape, the better it's going to be in terms of laying out

what are your thoughts on what gary gensler is going to be asked on wednesday regarding crypto. >> that'sess is much more pro-crypto, much more balanced and progressive on this new asset class than regulators are. i think he may be asked questions about whether crypto is being given a fair shake, whether there are clear rules of the road that will let entrepreneurs in the space build and grow. we're certainly going to get other questions from y across te aisle about risks in the market. where this is pointing is where crypto wants to go. all crypto is asking for is regulatory clarity, clear rules of the road, the belief in this industry is that our system is faster, more efficient, quicker than traditional financial ecosystem so as long as we can get clarity, we'll be in a good place. maria: right. we need clarity on over exactly who is going to be the overseer here. is it the s.e.c.? >> that's exactly right. maria: is it a different agency? mike lee, jump in here. >> it seems like all the stars are aligning and you're seeing that in the price of bitcoin. every time there's a crisis, the

that is not going to happen while gensler is on the warpath.obody wants to touch this that has to play nice with the sec that includes all the world's pension plans who put majority of indexing in s&p 500. they don't want to mess around with a asset class that gensler doesn't like. believe me he doesn't like it because it is not regulated and he will go after everybody playing with it and until he is finished it will be difficult to own long term. it is fun to watch it move between 17 and 25, maybe higher but it is not big boys currency yet. neil: thank you very much. kevin o'leary, o'leary investors, "shark tank" investing. much more. want to pick up with peter tuckman. peter to hear kevin we might regret this rescue but we're not looking at another financial melt down. what do you think of that? >> you know agree with kevin on some things and not on others. i don't think there is a lot relates to what happened in '08, 09. that was pervasive throughout the whole sector. i think this is isolated right now as far as we know. obviously we're seei

i expect goldman is alread lawyered up themselves >> people forget, gary gensler grew up -- doing goldman. it is like having meadow soprano run the police department he knows how it works. peter baker, obviously, this h so politically charged lawmakers on both sides of the aisle are angry. there's lots of fingers bein pointed. talk about wrongdoing. what happens if this ends up just being a colossal screw up what if management at this company just plain screwed up? they weren't doing anythin nefarious, they weren't trying to steal - they just made a horribl decision with their deposits buying those treasuries, ended up in a hole, spooked the mark it's their depositors leave. and it's just stupid what is going to happen in terms of the political fallout >> never underestimate the possibility of stupid being th answer in almost any circumstance, especially, by the way, when you get into politics in washington so, stupid means stupid all th time here. and the fact is, we don't know right? if this is something tha creates a wider rippling effec that goes beyond a couple days and has, obviousl

i know that the gensler s.e.c., they're creating securities day after day there's a ripple case. they may not even win the ripple case, but the binance is very different, because that's basically saying, okay, we got a criminal enterprise, and we've got to stop it i think it's a northern illinois federal court, i think, the win, binance, it's not a question of cleaning up their act. there is no act. >> there is no act to clean up >> no. >> couple other pieces this morning, jim lucid, we talked about the 18% head count reduction yesterday adam jonas says other ev makers are going to have to consider -- >> if they fire everybody that can make money, that's when they -- that's when it comes into the fore. honestly, lucid, you know, 18% of the workforce when i went to see peter, the car is just fantastic. but what we're discovering over and over again is that's an irrelevance. it's how to make the car and make money on a car. >> the technology is separate from the production. >> right i mean, you know, look, these thin

stablecoin specifically, but at the same time we heard from congress and fed and treasury and chair gensler said that payment stablecoins that are designed as mediums of exchange and held to the appropriate standards should be regulated as that payment technology that is where policymakers everywhere seem to be going. regulators and assupervising. we are expecting to see it here in the uk. there are proposals making its way through congress in the ideal world, these are full reserve with cash held at the fed and in short duration t-bills. we have been advocating that for a long time. we think now in recent days and weeks, et cetera, really puts more urgency on that need for stablecoin legislation >> arjun joins us around the desk what did you make of the comments >> it is interesting of what is going on behind-the-scenes circle had $3.3 billion of the reserves that backed the u.s. dc stablecoin at silicon valley bank the fear at that point when the bank went under is the stablecoin could collapse if you couldn't fill the hole you saw the move away from the dollar it was only when the u.s. r

and gary gensler.suit against qcoin is the fourth largest crypto exchange claims it violated the law by selling securities that were not properly registering in new york state. it adds that qcoin offered an ethereum stake product similar to the one that got kraken in trouble with the s.e.c also dealing with the budget proposals and rules to close the loophole and limit ability to take losses to lower tax bills the plan would subject crypto to the same sales rules that apply to stocks and bonds. frank, bitcoin is down sharply now below $20,000 and hitting the lowest level since january. >> silvana henao, thank you. >>> coming up on "wex," investors gear up for the jobs report that is being released in hours. we talk to one guest >>> and as we head to break, the top stories. apple launching classical music service. access to 5 million tracks and hundreds of play lists and thousands of items. >>> and the drone delivery company will expand delivery system beyond the test cities starting this year the wing

chair gary gensler describing them as fig leaves when executives have information and they say it was 10b51 plan under this proposal, these shares are not possible for becker you should wait 90 days before you create the program to when you sell them. this program that becker created was created in late january. less than a month later that he sold the shares after creating the program. i think this could only sort of accelerate the time lline for imposing the 10b51 programs. >> people on capitol hill will look at how this played out. robert frank, thank you. >>> coming up, more on the collapse of silicon valley bank. msa capital's ben harburg lays out the hurdles for the ripple effects still yet to hit "wex" is back in a moment. stay with us with powerful, easy-to-use tools power e*trade makes complex trading easier react to fast-moving markets with dynamic charting and a futures ladder that lets you place, flatten, or reverse orders so you won't miss an opportunity >>> welcome back to "wex." the ripple effects hitting tech and life sciences companies. roblox is one of the significan

sec chair gary gensler has repeatedly warned firms that many crypto products are securities.s now is bloomberg's crypto reporter in mumbai. what exactly is this notice on the sec? what does it mean? >> as per the filing by coinbase, it seems like the notice pertains to the spot market of the exchange as well as the services known as coinbase which are offered by the platform. it seems like another u.s. regulator has upped the ante on the products which are offered by crypto exchange is. earlier this year we saw that crack in -- kraken had a $30 million penalty to settle similar allegations from the sec as well. dani: why has the sec been so aggressive as of late? sidhartha: since the collapse of ftx, we have seen the tightening of regulations, especially in the u.s. and the sec is of the opinion that most of the crypto acids and progress -- products are essentially securities and they are being offered to users without proper registrations. they believe these are illegal security offerings and they should get the proper licensing done with them. dani: this is never a question

ripple lags hey, if this is a commodity, they say this undermines the argument being made by gary gensler at the s.e.c. that a lot of the crypt currencies, all of them except for bitcoin, round agreement. >> sounds like a turf war and aren't some of the prices up as well on the declaration if you want to call it that >> absolutely. xrp was up 17%. >> wow. >> part of a multi-day rally. >> wow. >> mckenzie, love your name. my son's name is mckenzie and many other reasons nice to have you with us. >> great joining us guys. >> no, you. >> no, you. >> let's get to kristine yeah, partsinevelos for the cnbc news update. >> you both can have me. fifa is stripping indonesia of its opportunity to host the under 20 fifa world cup later this year which comes as local indonesian officials said they would not allow israelis to stay in their cities amid protests over israel's participation in the tournament a host country will be announced as soon as possible with the tournament stoat start at the end of may. >>> rhode island senator jack reid introducing protection for abusive passengers act today the

that is part of gary gensler's agenda and silvergate is a smallish bank. deal with regulatory issues. that is some of what you're seeing here. we should point out there is some emerging decent news on all of this involving customer money. sources close to john ray and some of the people involved in untangling the ftx mess, i deal with them, pointed out to me today that about 400 million more dollars was found. liz: where? >> well, underneath the mattress. i don't know. liz: underneath the futon. >> here is where you have to caution. there are six billion of eight billion missing. there are two billion left they need to recover. this is what they're cautioning me on, caution people that think they will get their money back tomorrow. number one, some of these assets are illiquid. in venture capital investments, doesn't necessarily translate to cash immediately. some in crypto. may have a value but no hose what it will be tomorrow. and also it is wrapped up in a bankruptcy process. when you put all of that together, whether you get the money back when, how mu

the sec is run by a guy named gary gensler. he was the treasurer for the clinton campaign.also helped launder the money through fusion gps that hired a british spy. when we came on board, they announced this financing mechanism for us to do. we had no problems, we will be transparent. typically, it takes 90 two 100 days -- 90-120 days. but then we found out that peter's wife is one of the lead investigators at the sec. we are a florida company. we should be handled in the florida regional office, but for some reason we are being handled here in washington dc and we got no information. we have proven that we can build the company. despite all the attacks, we are fully isolated from big tech, they cannot kill us. but how do you compete with these trillion dollars companies? we do not have access to the capital markets. if you want to grow and give people a bigger voice, we have to have access for people who want to invest with us. >> the government colluding with the private party. we need protection because we are private parties. that is true to some extent, but when you ha

. >> he was really marty per gensler, he did not have a criminal record.d have was a relationship with lindsey, that he did not tell his wife about. he told police that he would often pick lynsie up and give her rides. but that was about it. marty was 58. >> and she was 20? >> she was 20. >> and they were boyfriend and girlfriend? >> i don't think so. >> so police brought in marty. over two days, they recorded those interviews. at times, on video. and sometimes just an audiotape. >> one is a lesson that you saw lindsey? >> a week ago. >> i don't think so. >> absolutely. >> absolutely not. >> marty said that he had -- lindsey on the day that he had gone to san diego on a friday. >> did she see? when >> we really didn't believe him. >> they didn't believe him because a tip that they received, a clerk at a low the clothing store had called to say that she had seen lynsie and a much older man that match marty's description together at her store. after the day that lynsie went missing. >> i, wasn't there on that day okay? i haven't been in that store. all right

just yesterday chairman gary gensler said we at the s.e.c.e particularly focused on monitoring for market stability and identifying and prosecuting any form of misconduct that might threaten investors or the markets more broadly. he vowed to bring enforcement actions if they find anything wrong. this is on top of the fed launching just yesterday a review of the regulation of this bank. so there's a lot of questions here about what both management and regulators could have done differently to prevent this debacle. >> how should we be interpreting moody's decision? >> it's certainly a sign of continued concern about these banks. moody's says that they expect that banks are going to continue to remain under pressure for as long as the federal reserve hikes interest rates. they're warning they could downgrade six u.s. banks, including first republic bank, western alliance. i think there's some investors and customers who are probably hearing these warnings from moody's and wondering where were you guys last week before the banks collapsed? i thin

now, sec chair gensler says it's not orchestrated a promotional campaign in which he and his celebritythey were paid for the treats. -- tweets. they've clawed back $400,000 from encoursers in-- endorsers including lohan and paul. look at the example of lindsay lohan selling many her tweets for tron, she tweeted that she likes sun, she likes tron's tokens and good job. that's fairly evident, don't you think? she didn't disclose that she was being paid. kim car cash january also was paid $1.25 million, she had to give that back to the sec last year to settle charges that she also misled users in crypto. but despite all this, the stock still is -- 100% this year, bitcoin still at $28,000, you're up 70% so far in 2023, even outperforming gold which is only up, only, i say, up 11%. and this is a preferred trade from the banking crisis. stuart: it's a great story. trouble in crypto, but bitcoin goes straight up. susan: as i mentioned, thises the 3-year anniversary of the covid stock market bottoms, since end then guess how much bitcoin has rallied? 400 percent since march 23rd, 2020. so you'

and this is what gary gensler of the s.e.c.ams are -- have been abused and he started new rules which under these new rules in the s.e.c., becker's sales could not have happened because one of the new rules says there has to be at least a 90-day cooling off period between the time you start the sale and the time you actually sell. so he started january 26th, he sold february 27th, under the new rule he would have had to wait two more months to do that. and that prevents people from saying, something's coming, i better sale, i'll start a scheduled program, schedule this a month from now. >> sometimes people schedule it even for a week or two later, so it is a one-off sale so these new rules are designed more transparency, and this cooling off period and i'm sure either way they're going to look at this sale and say what did he know on february 27th when he sold it. >> was he hiding under this umbrella of the scheduled sale rule >> that's right. that's right the s.e.c. already charged somebody who had a prescheduled sale program

>> well, i mean gensler has come out and said bitcoin is the only one he is comfortable saying he isitcoin off the table for that. >> say the sec wins this given what happened with sam bankman-fried it will be hard for a judge to basically side on the, you know in crypto's favor, does it have a ripple effect through the industry in a sense how does that make coinbase, means coinbase, binance brokered unregistered securities? are they kind of on the hook. >> it will be a huge presidential value if sec wins. if you look at xrp, it was created in 2012. it was the third largest cryptocurrency in the world when the sec sued ripple. it was traded charlie, cheryl, for seven 1/2 years around the nights and the world openly and fairly without any interaction from the sec. then the sec comes in seven 1/2 years later, after it was declared convertible virtual currency by the fincen and declared by fsoc as virtual currency, by the government accountability office as a virtual currency use losing a decentralized platform, after all that the sec comes in after all those years. >> they still have a

>> yeah, two things, we're going to be the shredder as well on gensler and his many es g-man kates, becausey are -- esg mandates, because they are awful. and what vivek said once again is absolutely right. these organizations have taken their eye off the ball of what their mission is. and secondly, yes, the republican majority is going to the keep the spending in a responsible way. and once again the democrats want no limit on the budget ceiling, and they want an irresponsible future budget. no, we're going to give them a responsible budget, not an irresponsible if one. elizabeth: got it. pleasure having you both on. thanks for spending time with us. >> thanks, liz. elizabeth: staying with this story, say with us, we have a jam-packed show. do you believe this, michigan democrat governor gretchen whitmer now says her own pandemic lockdowns were wrong? and cbs reveals government documents show the nih paid double for dangerous supervirus research in china despite dr. fauci's denials. we have up next alaska senator dan sullivan, climate activists outraged after the white house approved oil kr

and one thing that no one woul suggest is that gary gensler i the chairman of the sec, is shrinking violet, when it come to enforcement and coming at a time whe there's very - i expect goldman is alread worried about themselves >> people forget, gary gains lure gainler grew up at goldma sachs. it is like having meadow soprano run the police department he knows how it works. peter baker, obviously, this i how politically-charged. lawmakers are angry. -- talk about wrongdoing. what happens if this ends up just being a colossal screw up what if management at this company just plain screwed up? they weren't doing anythin nefarious, they weren't trying to steal - they just made a horribl decision with their deposits buying those treasuries, ended up in a whole, spooked the markets, they're depositor leave. and it's just stupid what is going to happen in terms of the political fallout >> never underestimate the possibility of stupid being th answer in almost any circumstance, especially, by the way, when you get into politics in washington so, stupid means stupid all th time here. and the fact i

gary gensler is bringing the action. >> you see bitcoin. exactly. that is why.çó >> this morning,çó it is up 2%. >> just a matter of ti)÷ before we open the xdspigots again. that is what the hodle1ers thin. just a matter of time. >> if you look at treasuries, it is indicating the same. we will see. i don't know if that is realistic. none of use1 would anticipate where we arexl■1 today a year a >> you thinkpw1■ make it throug 2023 without a cut? >> i hope so. >> you think we make it without a cut in it interest rates? >> i would say yeah. >> ixd don't know how much furtr i would go. >> everything happens quickly. >> i would not sayçó 100% certainty. >> we may have another virus. >> let'sçó not do e1that. >>> the s.e.c. in another move charging eight celebrities with toutingk&+o cryptocurrency disclosing they were paid to do lpso. actress lindsey lohane1 and jak pau among them.ìáhp &hc% they agreed to pay q$400,000 fo the settlement.Ñi s.e.c. charged some with manipulating dh■ tokens creatint ás!t he is the one who told the celebrities they c

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

. >> i do it in front of my fire like gensler does with us. >> someone said be careful with mccormackad i'm careful. shut up, people. >> the dow has about a 50-point gain to start the day. busy day in bank regulation. senate banking in a little bit. take a look at bonds as the 2-year back above 4. a round trip that was. we're going to watch that. back in just a moment. what do you see on the horizon? uncertainty? or opportunity. whatever you see, at pgim we can help you rise to the challenges of today, when active investing and disciplined risk management are needed most. drawing on deep expertise across the world's public and private markets in pursuit of long-term returns... pgim. our investments shape tomorrow today. if you have this... and you get this... you could end up with this... unexpected out-of-pocket costs. so if you're on medicare, or soon to be, consider this. an aarp medicare supplement insurance plan from unitedhealthcare. medicare alone doesn't pay for everything. and what it doesn't pay for, like deductibles and copays, could add up to thousands of dollars. medicare

and then again, as gensler this morning suggested, those who are found of any wrongdoing will be held accountable >> i thing it's difficult to find someone who exercised their absolute right to be able to invest anywhere on the curve from being considered a bad actor. i want to get that off the table. >> silicon valley bank made a choice with that infuse of deposits to put it into longer dated securities i am sure they hadn't reached for those 50 basis points. >> do you think a competent bank would have said you have a lot of risk here because you really are far out of the curve given the fact the federal reserve is going to keep raising rates in. >> that would have been a fair point, and listen, it wasn't a big secret to many in the marketplace they did have a bond portfolio was under water. of course, it was in a maturity portfolio where that did not have to take a hit, and obviously, if the deposits had not left, they would not have had to the margin would not have been looking particularly good, but ultimately, they would have moved through this in fact, many people want to point

two weeks ago i thought the letter with chairman mchenry to chair gensler regarding the fcc 's climate disclosure role. urging him to rescind his proposal and reminding him that the fcc is a market regulator, not a climate forecaster. much like congress, designed the fcc to protect investors to maintain fair, orderly and efficient markets. and to facilitate capital formation, and not to advance progressive climate change policies. congress designed the federal reserve to remote priced ability and of maximum employment. not to play politics. to that end, i find a worrying the fed's announcement of recent actions to consider climate related scenarios coupled with remarks by the vice chair's provision as attempts to cooperate broader policies into the financial services system. -- account for weather related risks in their risk management. but efforts that come to protect climate change far into the future fall outside the scope of their authority. importantly, the level of speculation required by these models should highlight their arbitrary and capricious nature. at a time when our econ

time line for that at this point what needs to be done for that to actually happen what would chair genslers hard to say but right now the sentiment about crypto is so negative in washington that i don't see that happening in the immediate future crypto advocates have been advocating for this for a while saying this is a safer way to sort of like regulate crypto and bitcoin. given the sentiment in washington and the fear and this feeling that crypto is something dangerous and something to protect americans from, it doesn't seem like the prospects for that are great at the current time there's an argument to be made that that's a way to get crypto within more of a regulatory framework and to make a safer way for american investors to invest in trading. i don't see that happening immediately. >> did the ground hog see its shadow is winter over six more weeks, six more months of winter? are we in the spring where do you think we are? will there be new lows, intermediate term lows in bit and ethereum and others? >> well, wun thing i will say about abcrypto, it has the endls capacity to surprise

the sec is run by a guy named gary gensler. he was the treasurer for the clinton campaign.y. when we came on board, they announced this financing mechanism for us to do. we had no problems, we will be transparent. typically, it takes 90 two 100 days -- 90-120 days. but then we found out that peter's wife is one of the lead investigators at the sec. we are a florida company. we should be handled in the florida regional office, but for some reason we are being handled here in washington dc and we got no information. we have proven that we can build the company. despite all the attacks, we are fully isolated from big tech, they cannot kill us. but how do you compete with these trillion dollars companies? we do not have access to the capital markets. if you want to grow and give people a bigger voice, we have to have access for people who want to invest with us. >> the government colluding with the private party. we need protection because we are private parties. that is true to some extent, but when you have the government telling them what to allow and what to allow, it is no