mr. 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

mr. 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. next we will go to mr. bodson. you're now recognized for five minutes to present your oral testimony. >> ranking member, mchenry, members of the committee, my name is michael bodson and i'm the ceo. a holding company that operates three s.e.c. regulated clearing agencies including national securities clearing agency, of which i'll speak to today. i appreciate this opportunity to speak to the committee. in my line of work, the best days are those when nothing too exciting happens that's because dtcc is a risk management organization enhancing efficiencies and reliability in the markets. on a normal day we process about 200 millions buys and sells for a value of $2 trillion. through that is reduced a million securities -- creating significant efficiencies in the market. when you buy or sell a stock t takes two days for the trade to be received. a lot could happen burg those two days that could create a risk if the buyer or seller fails to deliver money or shares. because of clearing, investors don't have to worry abo

mr. 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 q

mr. 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

mr. musk >> i don't know whether i'll be watching "saturday night live", but i have no messages for anybody that's on the show i'm sure that they've got enough media consultants to advise them >> chair genslerok forward to seeing you in person very, very oon. >> thank you, andrew, becky and joe. >> you bet thank you. >>> when we come back, the labor department's april employment report we've got our all-star jobs panel standing by for that data and the market rctn.eaio predictions are next "squawk box" will be right back. (vo) while you may not be closing on a business deal while taking your mother and daughter on a once-in-a-lifetime adventure — your life is just as unique. your raymond james financial advisor gets to know you, your dreams, and the way you care for those you love. so you can live your life. that's life well planned. some say this is my greatest challenge ever. but i've seen centuries of this. with a companion that powers a digital world, traded with a touch. the gold standard, so to speak ;) 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 kee

gensler will be working on this. >> is that a yes? i'm not clear on the answer. >> clearly the lack of disclosure hurt -- fortunately it didn't hurt taxpayers or investors. it hurt mr. wang and his family office and the banks that were prime brokers. generally, yes, this should be figured out and the s.e.c. is focused on it. >> the largest banks are earning more and more profits than ever before but making fewer and fewer loans to consumers and small businesses. lend something down by 10%. bank of america saw a doubling of profits in the first quarter yet lending is down 14%. can you briefly explain to me the dramatic decline in lending in the midst of record quarterly profits? >> so why don't i start first. our loans are down largely to a series of factors. one of them for small business loans $35 billion of ppp loans, borrowing at the percentage of their revolvers, that's tens of billions in loans. and consumers paid off credit cards. that's what the business we're in. it was driven by the markets. as the economists healed and as final demands come back in and the spending is growing, you've seen the loan balances start to grow this quarter. that's been a hopeful