sec. jean-pierre: no conversation beyond what we laid out after the house past their version of the bill. the president spoke with speaker mccarthy after that. they have spoken several times and as you saw the president thanked speaker mccarthy for coming together and having this bipartisan agreement. they will have more to share. clearly, they will be talking in meeting a lot more on different legislative agendas and issues, but he has nothing else to share beyond that. >> beyond that, i wonder if people can glean from this that you guys have more of a template for how to deal with this in an era of divided government, with these negotiations ultimately being successful? sec. jean-pierre: i think what you saw on full display the last couple of weeks -- and, look, maybe there is a template, maybe not, but what i can say for sure is that you have leadership in congress and the president come together and lay out, in a divided government, as you just laid out, go through a negotiation proces

the sec complaint mentioned just 13. we also have business overseas and other countries and a lot of revenue from other sources. coinbase is well-capitalized and adjusted ebitda positive in q1 we will be positive going to court. it is a small portion of our company. we have a great legal team that is working on this. what i want 95% of the company to be focused on is building great products for our customers and making sure we do not lose sight of that. this is a serious matter i will work on with our executives. the vast majority of the company needs to keep building because that is how this company will benefit people, hopefully. sonali: how long does the regulatory overhang last? this could take many months. you think your investors or your customers might lose favor? brian: this is not a new concept. the sec has had rhetoric around this for several years. the investors in coinbase are comfortable with that. it is all public and it is not some secret thing being revealed . i think they are taking a long-term view that

sec rules. _ agency for investments that are subject to sec rules. but - agency for investments that are subject to sec rules. but they i subject to sec rules. but they did so without properly registering, and that, they said, allows the firm to escape oversight, including guards against conflicts of interest. the charges against coinbase were not a surprise, as a publicly traded companies and disclosed in march that the sec had notified it that these charges may be coming. in response, coinbase said liberals are not clear. they testified on capitol hill that the chief legal officer said it try to get new rules in place —— said the rules were not clear. but got new response —— no response from the sec. we have had over _ no response from the sec. we have had over 30 engagements with the — have had over 30 engagements with the sec to try to work towards _ with the sec to try to work towards a sensible framework for regulation. we received no response _ for regulation. we received no response afte

since that time. _ no response from the sec. since that time. we — no response from the sec.ince that time, we have _ no response from the sec. since that time, we have had - no response from the sec. since that time, we have had over- no response from the sec. since that time, we have had over 30| that time, we have had over 30 engagements with the sec to try to work— engagements with the sec to try to work towards a sensible framework for regulation that would — framework for regulation that would allow for example the registration of platforms as either— registration of platforms as either broker—dealers or a tss or a _ either broker—dealers or a tss or a national security exchange. we received no response after our presentations as part of those discussions. gn presentations as part of those discussions.— presentations as part of those discussions. on the one hand, coinbase _ discussions. on the one hand, coinbase is — discussions. on the one hand, coinbase is basically _ discussions. on the one hand, coinbase is basically saying, i coinbase is basically saying, look, we

sec. blinken: who did you miss, richard? richard: interestingly enough, it was john marshall. can't quite read into that. just is. just is. i guess if you have a name, a plan named for you, you won't be invited back, something like that. timing accounts for a lot in life, and our timing could hardly be better. the secretary has recently traveled to the kingdom of saudi arabia, to china, to europe, and over the past few days he and his colleagues have been closely monitoring news out of russia, and all this and more against the backdrop of a war in europe that has now entered its 17th month. all of which to say, as we are more likely to lack for time than topics, the two of us will begin with a half hour or so of conversation and then open it up to members for questions. want to say again that today's meeting is on the record. again, i want to welcome the secretary. and i might add, tony, that you and i -- you today have had the sort of day i can empathize with, i can relate to. you go to m

former sec chief counsel now at bain capital. kailey leinz will be headed back to capitol hill to harass lawmakers. bloomberg is launching a new podcast called "spell caster." it looks into san bankman-fried's incredible rise and fall in terms of celebrity, wealth, in terms of the alleged fraud. hannah miller is the spell caster host and reported on the collapse for us. thank you for joining us on set. fantastic podcast. i started it yesterday. i have access to four episodes. i think i am special. tell us what you discovered in your reporting. hannah: this was such an exciting project to work on. i learned a lot. it has been incredible to dive into the origins of ftx and sam bankman-fried. he is a very interesting individual. we traced his childhood growing up on the campus of stanford to his activity with all truism. we really saw how that played into the founding of ftx. can see these themes -- what happened with ftx -- are still relevant today. there are parallels in the accusations. still a developing story. amber: he has bee

do you think that the sec- -- _ lift list in 2021. do you think that the sec. .. do you think that the sec... should they _ lift list in 2021. do you think that the sec... should they be - lift list in 2021. do you think that| the sec... should they be treated lift list in 2021. do you think that - the sec... should they be treated as securities? we the sec... should they be treated as securities? ~ ., �* , ., , securities? we don't list any securities — securities? we don't list any securities on _ securities? we don't list any securities on exchange - securities? we don't list any| securities on exchange today securities? we don't list any - securities on exchange today because we apply an exacting listing process, a deep analysis of each asset to confirm that the asset is not a security. it is one of the reasons why coinbase rejects 90% of the assets considered for listing, but we do agree with the s cc that offering asset security should come to market sooner rather than later. we would like to be able to do this in the future and there needs to be sensible ru

su: a one-two punch from the sec, binance yesterday, coinbase today, and the sec getting a temporary to freeze binance u.s. assets if needed. again, their goal is to protect customers, they say. now they have gone after coinbase and this is being vigorously fought by coinbase. we will get into that in a minute. the allegations similar. framing how the sec's line of attack is going. they are alleging the firm acted as an unregistered broker and broke rules for the staking service. . , as established with the binance lawsuit, they are listing more than a dozen tokens as unregistered securities, so any exchange that deals directly with that is viewed as illegal. take a look at how the stock reacted. it was already down yesterday on the binance lawsuit. it had a huge drop, 20% at the open, before regaining a bit of ground by the close. brian armstrong the ceo, hitting back, saying instead of publishing a rulebook, the sec is taking a regulation by enforcement approach. he thinks it hurts america and says if we have to go to the courts to get clarity, we will. bloomberg spoke to the top l

the laws that govern the sec's authority are clear. both the public interest and the protection of investors. for an exchange commission to now claim two years later -- more than two years later that somehow we were running an unlawful enterprise when their mandate requires to consider protection of investors and their very name requires them to apply their expertise on securities and exchanges. it does not make any sense. sonali: coinbase said the business model has not changed since the ipo materially. it is in the heart of the sec has allowed. coinbase has added a lot more tokens to trade. how hasn't it really changed? paul: we have always looked to at assets that were appropriate for not only our customers but consistent with our lawful authority. that is one of the reasons why coinbase has a rigorous vetting process in evaluating any token or crypto asset that has requested to be listed on the platform. it's one of the reasons why more than 90% -- 90% of the assets taken under consideration and reviewed are rejected. we are quite

you know, coinbase was recently, i guess, charged by the sec, right? sued by the sec.ny that went through the ipo process, right? i mean, robinhood is under investigation, right? it's a u.s. public company that went under the ipo process, and it's listed on an exchange. yet they can't get this designation, but these guys can. you know, gensler needs to sort of come forward. i've asked the sec for comment, tell us what makes them different than the others. because what people are saying is, this is another i screw-up in crypto, it's another potential sam bernankeman fried thing -- sam bankman-fried thing. they've not been charged with anything. by the way, i looked at the regulatory record, they themselves don't have any issues, just so you know. i'm laying it all out there. liz: thank you, charlie, very much. dow on pace to close at its highest level since december, but all of the major indices are on track for 2023 highs. all right, let's look right now to microsoft, notching and heading right toward a record high close. never seen before. market optimism on a.i. putt

that are subject to sec rules but they did so without properly registering, and that, the regulator said, allowed the firm to escape oversight, including guards against conflicts of interest. the charges against coinbase were not a surprise. as a publicly traded companyit disclosed in march of this year that the sec had notified it that these charges may be coming. in response, coinbase said the rules were not clear. testifying on capitol hill tuesday the chief legal officer for coinbase said it try to get new rules in place for crypto platforms like theirs, but got no response from the sec. since that time, we have had over 30 engagements with the sec to try to work towards a sensible framework for regulation that would allow, for example, the registration of platforms as either broker—dealers or atss, or a national security exchange. we received no response after our presentations as part of those discussions. on the one hand, coinbase is basically saying, look, we want to abide by your rules but the ones as written don't work for these new financial instruments, like crypto curre

coinbase is having a tough time with the sec right now. the sec filing suit against coinbase.t is interesting, your analysis seems to predate all of that legal back and forth. how much is that regulatory overhang factoring into basically this gratian away from coinbase? dan: i think that is an excellent question. our data is from april. the reason it is from april is it was a got you moment, where we will able -- we were able to triangulate enough data points to hone in on that share loss in make it affect. the way i view this, everything that happened with the sec was subsequent to when we did the work, which means that it is going to get worse from here. i think this is the kibosh from here on. it was bad before, it is going to get worse going forward. jon: what about, dan, the fact we have seen shares moving today on some of those headlines involving blackrock and the bitcoin etf bush? what was your reaction to that? dan: when i saw this, it is not new. coinbase traded up 20% last year when the blackrock news came out. this is kind of regurgitation of old news, as far as i

but agency for investment that are subject to sec rules.— sub'ect to sec rules. sec rules. but they did so without _ subject to sec rules. but they did so without properly - did so without properly registering and that allowed the firm to escape oversight. the charges against coinbase were not a surprise as a publicly traded company it disclosed in march this year that the sec had notified it that the sec had notified it that these charges may be coming. in response, coyne bay said that the rules were not clear. testifying on capitol hill on tuesday, the chief legal officer said it tried to get new rules in place for crypto platforms like there's but got no response from the sec. since that time we have had over 30 engagements with the sec to try and work towards a sensible framework for regulation that would allow registration of platforms is either a broker—dealer or a national security exchange. we received no response after our presentation as part of those discussions. on one hand, coinbase basically says we want to abide by your rules but the ones is writte

ed: the sec sues coinbase, we have sonali basak. what is at the core of the sec argument there? >> a few things we have to think about, the claim the sec is making, that they are acting as an unregistered broker-dealer and listing unregistered securities which has been up for debate in the cryptocurrency -- community when it comes to regulators for a long time now. coinbase we know says a lot of the things they posted are not securities while the securities and exchange commission believes they are. they have a specific list of tokens they have referred to as believing as securities. we have spoken to brian armstrong on the record and they have talked about the listing process they have had at coinbase. we know they vigorously disagree with what the sec is saying. i think there's another couple twists and turns in the story because, if you remember, coinbase actually had looked to acquire or had acquired a broker-dealer that had been dormant with the sec. i expect that to come up again because they have been talking about that in recent months. it is not for lack of trying to be

the sec reloaded its lawsuit weapon and aimed at u.s. crypto exchange coinbase alleging it has been operating as an unregistered brokerrer. as shares of coinbase plummet 12.5%, we do have bitcoin now reversing and moving higher. coming up, early bitcoin investor and crypto advocate anthony pompliano getting in "the claman countdown" chair, we're going to ask him if this is the dill shot that -- kill shot that brings down most of the industry. apple shares are moving just flat. they were lower earlier a day after the iphone maker unveiled its much-awaited reality headset after a very cool rollout. the product getting mocked on twitter for its ski goggle-like design. d.a. davidson cutting the stock from a neutral to a buy saying any good news sprouting from the $3500 product already baked into the stock. but whether it's the red apple or the green bitcoin, this market seems remarkably calm. wall street's fear index down, that means fear has come out of the markets, and we do have it barely at 14. so just as we mark exactly one week until t

how he must l ask, do you think that the sec have _ ask, do you think that the sec have any— ask, dos? that some — have any valid points? that some of— have any valid points? that some of the coins that you treat— some of the coins that you treat on— some of the coins that you treat on your exchange are seen as securities and that should be treated like that. coinbase does not list _ be treated like that. coinbase does not list any _ be treated like that. coinbase does not list any securities i be treated like that. coinbasej does not list any securities on our exchange today because we operate and apply and exacting listing process. a deep analysis of each asset to confirm that the asset is not a security. it is one reason that for example or two over 90% of the assets is considered for listing. but we do agree with the sec that offering digital asset securities should come to market sooner rather than later. we would like to be able to do this in the future. of course there need to be sensible rules in place to make sure that investors are protectors —— protected in the process. in

in the sec lawsuit, there's a bevy of other charges.isleading customers, co-mingling funds improperly, all of that. but what is important to note is that when the regulators put these cases forward, these are civil charges. when they ask the justice department to look at a something like perjury, that could be a criminal charge. caroline: the point being that who is responsible for this -- cz at the moment, he is out in the middle east. he has various bank accounts, we seem to understand. i know ed wants to get to that in a moment. what about the leadership of binance u.s. ultimately? katie: that's a good question. it was suppose to be operating independently. a lot of pushback against that notion has been placed on regulators and lawmakers as well. as you said, he is in the middle east at the moment. there's also another doj investigation ongoing into potential sanctions violations. it will become a question of whether there was actually something brought to the doj, what potentially extradition might look like. there's a lot of questi

the sec, aiming at sites -- its sights at coinbase.tection of the consumer and they want to ensure integrity of the market. the two suits combined in a matter that is huge in terms of impact for crypto as a whole has basically determined more than a dozen coins are unregistered securities. this is a foundation upon which it is basing its lawsuits. these coins, not registered, therefore they are arguing they are illegal exchanges. shery: that question has hung over the crypto industry for years. we are seeing crypto trading sort of stabilized. what is next? >> probably this court battle and also many in the crypto industry believe we are getting clarity. we have seen huge dips in crypto before, mainly bitcoin. and that has come back. many of the supporters of crypto are immune to some of the huge drops, as your typical trader might be. analysts say the denseness and price is likely short-term because they trade on international exchanges. different story for coinbase. analysts are saying that it could see up to 50% or more of its revenu

i think it's definitely coming now that the sec is cracking down on stuff. they filed a motion for restraining order to freeze binance's assets not enough outrage, let's say supervision. that's over with i'm going to go over all of this manipulation because i don't want you to get ripped off i view this as actually my job now because how can we make money together if you are just going to lose it in thesescams and schemes? so why don't we start with the banking mini crisis that fell silver gate, silicon valley bank, first republic, silicon valley bank. it didn't get as much attention. the first was silvergate we don't know the circumstances of silvergate except they're trying to be the bank of all things crypto and binance stressed the balance sheet silvergate never recovered once crypto enterprises started imploding why because sam bank m bankman freed was the first of many a few mean spirited venture capitalists pulled their money out at once. then went boho on twitter to sink the bank. it worked because the deposit space was so very concentrated now signa

do you think that the sec have any valid points?should they be treated as securities? we don't list any securities on exchange today because we apply an exacting listing process, a deep analysis of each asset to confirm that the asset is not a security. it is one of the reasons why coinbase rejects over 90% of the assets considered for listing, but we do agree with the sec that offering asset security should come to market sooner rather than later. we would like to be able to do this in the future and there needs to be sensible rules in place to make sure investors are protected in the process. at present, the sec has decided to pursue those rules through litigation. we think that lawmaking is a much more efficient and effective process. how do you see the crypto exchanges being able to exist in the united states after all of this? could this be the beginning of the end for the crypto industry in the us? well, i think it is important to understand that americans have decided for themselves that they want crypto in their financial fu

today was all about coinbase, the sec also cracking down on this sector.g coinbase global of running an illegal exchange. after the regulator suit, rival finance as well. less discussed these elitist development on the crypto industry. su keenan has been following this. a common theme has been regulators alleging that coinbase let users trade numerous crypto tokens, it is deemed to be unregistered securities. su: if it deems the tokens that coinbase officer training as a legal, this is saying that coinbase's entire u.s. operation is illegal. one analyst says this creates a life or death fight for coinbase. a huge drop-off as the suit was filed. you saw a big dip in price because of the binance suit. what the sec is saying is that the firm acted as an unregistered broker when it traded or allowed trading of all of these various coins. it now finds roughly a dozen points to be unregistered securities. this is its key line of attack against the crypto industry. it found that coinbase broke rules with its sticking service, something that coinbase has vigorousl

they see sec

when it comes to the coinbase issue, they are the largest platform in the us and the sec is basically you were operating as an exchange but you did not register as an exchange, and the charges against them were not a surprise because it is a publicly traded company, and we knew it was going to happen because they disclosed that earlier this year. when you look at biance, it is not a publicly traded company, and not a publicly traded company, and no one knew these charges were coming but we had an idea given what we heard about coinbase. the accusations are similar against binance, operating without redrow —— registering as an exchange or stop they also said they were artificially inflating trading volumes and failing to restrict customers from using their global platform and misleading investors about its market surveillance. goad about its market surveillance. good stuff. about its market surveillance. good stuff- thanks _ about its market surveillance. good stuff. thanks for _ about its market surveillance. good stuff. thanks for explaining that. we can talk more about this with the

doj or sec? what are you talking about with them?he necessary cooperation with the u.s. department of justice or u.s. prosecutors, but i cannot confirm the specifics. >> many of the investors say they prefer do kwon to be sent to the u.s. for the trial, because south korea has lenient sentencing. what do you think about that? >> it is expected to be the longest sentence ever handed down in south korea, and as you said earlier, if the sentence in south korea is not enough, he can be sent to the u.s. and face another trial there and serve additional sentence. >> in february, sec said they were looking for the 10,000 bitcoin do kwon was getting around in his pocket. do you know where this cold while it is right now? >> we can see that it is coming out of the wallet, but we are not aware who might be in possession of the cold while it or how they are withdrawing it -- wallet or how they are withdrawing it, on what methods? >> how is the investigation going on shin? has he been charged with capital markets fraud? >> we have indicted shin

. >> it was a $10.9 billion -- >> authorized by the sec is to go public. how is it the sec can authorize a company like that to go public and here we are -- if you're an investor. >> i like hearing that from you. >>> "squawk on the street" is next and gary gensler next ♪ ♪ >>> good tuesday morning welcome to "squawk on the street." i'm carl consistent nia with jim cramer and david faber apple and coinbase at the top of the news flow. goldman cuts odds of a recession. another s&p 500 target hike from bemo apple getting into the headset game, looking to bring mixed reality into the mainframe the sec's crypto crackdown, bitcoin dropping to its lowest level since march as the regulator sues binance and coinbase gary gensler joins us on cnbc in a few minutes from now >>> elon musk says ai regulations are on the way in china. >>> first up, breaking news this morning involving coinbase the sec suing the crypto platform in manhattan federal court, accusing it as operating as an unregulated securities exchange brokerage and clearing agency, the regulator says since

rishaad: su, the sec is also looking at this list of digital tokens the sec considers now to be unregisteredk it is around $150 billion worth of assets. this is on top of the other headaches the company has. su: the suit was 136 pages. there are so many things that jump out, but that is one of the key points. again, this theme it is creating. its ability to go after crypto is to declare many of these coins as unregistered securities that fall under its purview, and therefore, it has an investor protection duty and can go in under investor protection law. these total $115 billion, enormous amount of assets. they include binance b&b which has a value of about $44 billion, these are very popular coins. they previously and separately targeted xrp. again, we could see a further knock on effect going into tomorrow when the u.s. trading opens. but again, you are seeing a lot of these assets come back from severely knocked down levels when the news first hit the table. rishaad: su, thank you. just going to check in on some companies making waves as we do see these. looking at apple suppliers of the

from the sec crackdown to how ai it is intersecting with the world of fertility and crypto. breaking news. google is getting hit with an eu antitrust charge for its tech abuses. this is what we are understating the eu will be hitting the charges later this week. he antitrust arm is targeting google's biggest moneymaker and it is already faced more than 8 billion euros in fines. keep a + what is happening in terms of its parent company alphabet. big tech in the line of fire when it comes to regulatory risk and the eu in particular, worrying about certain business models being held and controlled by certain companies. google will be hit with an eu antitrust charge for its tech abuses as they are being deemed. from new york, this is bloomberg. ♪ caroline: it looks as though we have further breaking news coming to google which will be hit with a formal antitrust complaint from the european union as soon as wednesday and could ultimately lead to further fines. alphabet has already had 8 billion euros in eu penalties thus far. the so-called statement of objections could becoming m

the sec has this way of applying for an etf.'s are a way for people to get exposure to a variety of products, whether they are international equities, commodities, currencies, through this regulated vehicle in a way that is cheaper and easier. it is natural for people to bring exposure to retail through the etf process. of course, this is a good opportunity following blackrock applying for their etf to try to throw their hat in the ring and figure out if they can get over that hurdle that the sec has placed for them since the first wave of rejections have happened. jon: how much does the situation with ftx itself play a role in the fact that it has felt like a roller coaster? a crypto crackdown. now within the last few weeks, all of these etf applications, which builds the story of momentum. brett: etf's were getting rejected prior to the collapse. post-collapse, it caused damage and credibility for the crypto industry in washington, and across financial service sector in general. i think people are starting to emerge again, not

sec. gen.rg: first and foremost, the most important thing that will happen at the nato summit in july is that nato allies will express strong support to ukraine. not only words, but in deeds. because nato allies will make new announcements of significant military support to ukraine and to promise to sustain and step it up. because we will make it possible to support ukraine as long as it takes. then on the issue of membership, yes, there are consultations going on among allies. and we have not concluded them. it is too early to figure out the outcome. but allies agree on a lot. . we agree that nato is open, as we have demonstrated with sweden for new members. we agree that ukraine will become a member of this alliance. this has stated many times by nato. and at the summit last year. and we agree it is for ukraine and nato allies to decide whether the time is right. it is not for russia. i am confident that at the nato summit, there will be a strong message on ukraine, because we need to stand b

this is a consistent pattern we see in sec enforcement actions. they are talking about finance selling assets that are unregistered securities. these are two of the native tokens. they say they failed to register that with the securities and exchange commission before selling them. a bevy of allegations here. we should say that by nance put out a pretty lengthy statement in response to this saying they are risk -- disappointed with this new response and they do plan to defend the platform vigorously. >> this is not the only one that finance has. is it? >> it is not. this is one regulatory agency here. we had cftc, accusing finance of violating derivatives. and you have a second investigation that the department of justice is conducting into sanctions. they are really kind of getting hit at every end here potentially, just larger regular tory headaches. not just for the exchange itself but they really did finance push back against the sec charges to the regulatory uncertainty here. they are trying to put some of the blame back on regulators themsel

there is a lot of caution on the sec, and they have that under their watch.orce, including leverage future etf. the future is really under the purview of a different agency here. the cftc. it would be much kinder to the crypto industry than the sec has in the last several years. not even the last year, but to the point you're making, but there is a push for an etf. it is different bitcoin. >> sonali basak. have a fantastic holiday weekend. i matt miller. for jon erlichman, this is bloomberg. somebody would ask her something and she would just walk right past them. she didn't know they were talking to her. i just could not hear. i was hesitant to get the hearing aids because of my short hair. but nobody even sees them. our nearly invisible hearing aids are just one reason we've been the brand leader for over 75 years. when i finally could hear for the first time, i started crying. i could hear everything. call 1-800-miracle and schedule your free hearing evaluation today. romaine: six months later and seven stocks higher equals the best first half in a year in

what happens to this host of tokens the sec has called out?hartha: the sec has listed a bunch of tokens, called them unregistered securities with a market cap of close to $115 billion. what this does is poses a risk for other u.s.-based crypto exchange is. -- exchanges. whether they allow users to continue trading in them and face scrutiny from the market regulator. dani: binance at they take the allegation scrutiny -- seriously but they should not be part of an action. they said we intend to defend our platform vigorously. sid, thank you. coming up we will talk about private equity again. our guest from goldman sachs joins us in berlin, he's also here for the private equity conference. we were just talking about lps getting more selective, lps are limited partners. we will talk about selective is with michael and what is to come for the industry. this is bloomberg. ♪ dani: good morning, this is "bloomberg daybreak: europe." these are the stories that set your agenda. the reserve bank of australia confounds expectations i hiking rates a quarte

tom: the sec chair speaking to david westin. in the interview he spoke about the potential for the entire industry to collapse, saying, quote a house of cards." strong opinions from the sec chair as he pursues this action, concerned about co-mingling of these parts of the market. crypto looking at bitcoin, trading at 26,833, down 0.3%. coming up, the latest on the down breach in ukraine -- dam breach in ukraine as villages face an environmental catastrophe. that is next. this is bloomberg. ♪ tom: welcome back to the open. 11 minutes into the trading day. the benchmark down close to 0.2% after the gains of yesterday. futures pointing to losses on the s&p. retail is leading the charge. that is one sector firmly in positive territory thanks to a beat coming in from inditex, getting over 2%. a loss and chemicals, basic resources, health care, food and beverage. the turkish lira is back to a fresh record low, below 23 to the u.s. dollar on speculation. the authorities after erdogan won the presidential race, will loosen with the 12th

in the simplest of terms, please explain why the sec is suing coinbase and what it alleges.arzad, host, "full disclosure": coinbase was operating as an exchange, something that has been regulated, in fact, intensely for the better part of 90 years. and if they want to do things, if they want to say, we operate outside the system, that's a world that they would like to occupy. that's their world view. but here you have the sec chair coming in and saying, actually, these should be regulated securities. they should be accompanied by offering statements, disclosures, various strings attached to the sec. and, clearly, that's anathema to the crypto world. you kind of want to exist in this gray area, in this wild, wild west, if you will. and i think between what happened yesterday and the announcement today, i think it's that the sec is finally putting regulatory contours around this. stephanie: yes, this is a $2 trillion industry that's been around for about 10 years. the sec chair, gary gensler, on cnbc this morning said, what coinbase is doing would be like if the new york stock

they kept writing the sec. what can we do here? what can we do here?y are sitting there going oh, now you're violating things. liz: although, how do you see the lawsuit against coinbase specifically playing out? because we had kevin o'leary here, of course the shark tank star, and he's a big or was certainly, maybe a little bit less so because he's got some ftx exposure, he's not happy about but he had said you know what? this ceo, i believe it's brian armstrong, he's fighting the sec stop it now. i would fire that guy. that's what he said about the ceo, and he said you just got to kind of take the wrap from the regulators and work with them and move forward. how do you see this ending? >> i don't think that's healthy i think look, brian has done everything right. he's done everything according to the books. he's got a new innovation. it's bitcoin and crypto and all of these amazing things that are going to completely transform a global economy. we're going to see extraordinary things come out of these whether it happens in the u.s. or not is really go

we have been in discussion with the sec for a long time.o before we were a public company. we start sharing with them how we operate our business, how we list assets on the platform, how we think about our staking program. and through a large number of dialogs back and forth, they allowed us to become a public company. we had many discussions with them in the last year, when their tone started to change. they started to come to us with more questions about the business. we were very forthcoming. we met with them probably 30 times over the last year. we started to ask them for feedback. we said we would like there to be a robust market in the u.s. to trade crypto securities of the 1000 plus assets we have reviewed today. we have rejected 90% of them. the ones we have traded, we believe arc commodities. how can we register and work together? unfortunately, we were met with silence. we got no feedback in those 30 meetings. the first meeting where they were scheduled to come and give us feedback, they cancel it a few days after that. it is real

questioning the sec decisions.e think this is a good thing. we think this is going to be in the court and in legislation for perhaps years. what has happened in the meantime? we have binance under increasing regulatory scrutiny for more criminal activities. therefore, we think the competition to coinbase is disappearing and that's a good thing long-term for coinbase. >> are you still confident in the $1 million target for bitcoin? guest: yes. the more uncertainty and volatility there is in the global economies, the more our confidence increases in bitcoin. one of the reasons is have just been through and inflationary scare. we think it was very much supply chain driven and bitcoin is a hedge against inflation. we also believe now that bigger risk is deflation not inflation. why would bitcoin do well in that circumstance? it would do well because it is an antidote to counterparty risk in the traditional financial system. on the bitcoin blockchain, everything is transparent. we can see all of the transactions, all of

is suing crypto exchange binance over alleged violations it is a notice issued against them by the sec and they're selling off quite dramatically and marathon, nine riot, 7%, jon. >> the thing that caught my eye in the sec lawsuit and binance is the commingling of customer fund which is reminds me of ftx, but it seems like it would be different from any issues with coinbase coinbase public and seems to be operating in a way that's more visible and are people trading these things together, perhaps and not because they're all necessarily doing the same things >> yes the answer is 100% yes and also because the sec is going after the names and it does get lumped in and in particular with binance there are 13 charges against the company and the four main points and one is the commingling of customer assets and the other is possibly selling unregistered securities and these are digital asset asks this brings up the whole question, what is the security the crypto world is saying the sec won't define it and another major point, too is they're operating a platform that wasn't cleared by the sec

this is not the sec falling asleep.says the rules are clear everyone else did the best of. but the house of cards, was interesting. everything is going to collapse like a house of cards. gates -- yikes. that was strong. and the value of these tom: are concerned. between the markets and hedge funds components, i was talking to someone at binance earlier, coinbase was listed in 20 31. regulators signed off. everybody will take a view on this, but to say that regulators in new and are not taking this seriously is hard to call at this point. it seems they are taking it very seriously. alix: that goes to dragons are's point -- gary gensler's point. rules are clear. they tried -- they were there. coming up, european natural gas, futures down today. but they were up 20% yesterday. you also have the ecb governor talking about how energy and inflation are going to be coming to europe. will talk someone with an inside scoop, colin parfitt will be joining us next. this is bloomberg. ♪ get help reaching your goals with j.p. morgan

sec, and the sec didn't want to sit down and negotiate and did not provide clarity on rules about whichsets should be treated like securities and which should not, and that's a lot of the problem of the crypto based products they say their products are safe and secure and will continue to work with the sec, but they claim the sec's real intent here is to make headlines it's a pretty scathing blog post just to recap, the seg filed a lawsuit against binance, and they are claiming they did not register as a u.s. clearinghouse, and it's not providing -- or is misleading the investors. you are seeing coin base down 9% bitcoin down 3%. it's having a negative affect on the entire space, scott. >> thank you for that update >>> we have interesting investment committee moves we have to get to starting with brenda, right next to me you trimmed nvidia it's up 170% year to date. at what point did you say this is a little ridiculous >> yeah, we decided to trim it and be disciplined i will say nvidia, this is the stock where there's a lot of good news baked in our strategy and our style is to remain d

all: the sec accuses binance of deception and handling customer funds. the decision day for the rba, rights expected to stay on hold despite a jump in monthly inflation. apple shares slip as investors point at the price tag of the mixed reality headset. >> ego severity week, we are asking business leaders are about the impact of technology and finance in the race to net zero. shery: we get you started with how u.s. futures are trading early in the asian session. they are under pressure after we saw u.s. stocks dropping in the wall street session. we got the concern about the economy and we have regional banks falling almost 3% on plans by regulators to boost capital requirements. we also had equities dropping with apple, peeling back earlier gains as we saw the pricing mixed reality headsets. yields were down across the board, the ism servicers gauge numbers. all of that leading concerns to the broader economy. we are seeing oil prices in the asian session reverse. small gains we saw in the new york session we have a little bit of gains in wti today. sau

. >>> the sec is showing that it's serious about its crackdown on crypto currency.filed a lawsuit against coinbase, and late last night asking a judge to freeze all of binance's assets one day after suing the exchange karen tso joins us to break it down the sec has made serious allegations against these companies. >> reporter: phillip, yes, good morning. the sec is going after two major crypto exchanges with twin lawsuits against binance and coinbase put being a cloud over whether these companies will be able to continue doing business in the united states. the regulator has asked the courts to freeze the assets of binance's u.s. subsidiary, alleging that they have a disregard for u.s. law an emergency order was filed late last night, forcing the repatriation of funds of customers on the binance crypto trading platform they are accused of squirrelling money to a separate company that has been able to invest stateside to trade on the company's unregulated site coinbase is accused of breaking u.s. regulations by operating as an unregistered broker, unreg unregistered

another one is i agree with an overall, overhaul of the sec. gary as part of a machine.e love hearing from you. i am extremely disappointed. i want to apologize. i want to ask the representative what is happening with donald trump in miami as well. hopefully we can bring them in before the week is over. back to the markets. it really looks like we are racing past the consolidation, panic buying phase. >> 4100 on the s&p, 4200, we would have some time, consolidated things, no breath taken, a leap forward, the market will continue to do that. the marker of a, quote, new bull market, investors on the sidelines are panicking they missed out on the first 20% move% move from the bottom. the next step is fear of sideline money coming in, providing sideline underneath the market. are they not that bad? some analysts expect earnings to pack up, investors are discounting that, the sidelines, money is looking at all of this having missed this performance. i don't know anyone who has caught this ride. if you know anybody please tell me. not a sickle hedge fund manager i know has cau

i think the sec is finally putting regulatory contours around this. $2 trillion industry that has been around 10 years. they said what coinbase is doing is like if the new york stock exchange was allowed to operate a hedge fund. could the outcome tame the wild west that crypto has been for the last decade? roben: the wild west aspects are the most profitable elements. coinbase has had a harsh two years. you really have to read the fine print. it is like lending out stocks if you are the client of a in. or getting things on margin. they do things like goldman sachs and others. coinbase is saying, if you regulate us, it will kill the whole thing. we are supposed to be deregulated. what is a token? if it is not a commodity, it is a meaning of life question. are we an ephemeral asset, do we even exist? [laughter] in the case of the action you saw yesterday, the mysterious ceo says i do not have a headquarters, it is wherever i put my laptop. it is on brand for the crypto companies to say you do not understand us. but they are saying if you want to regulat

sec. austin: well, thanks. i think you heard us say over and over again that we continue to support ukraine's open -- excuse me, nato's open door policy. and each country will have a different path. so, again, i'll let -- i will further say that we remain where we were with budapest and so as we go forward here, i think you'll see allies and partners continue to work together to provide ukraine what it needs to be successful and also provide assurances going forward. patrick: next question will go to carla, voice of america. reporter: mr. secretary, chairman, thank you both for doing this. mr. secretary, what has the u.s. committed to provide to the f-16 training program for ukrainians, specifically trainers, munitions, jets? and can you provide us with any more details on the overall f-16 training plans? and chairman mille, the indict the -- milley, the indictment of former president trump, how concerning is it to you that a former president or any u.s. official for that matter is willing to discuss classified

sec. defense putting together a remarkable process to rally the countries to provide -- >> march 10th there was a lead editorial that the legacy of the president and you are criminal from ukraine that is victory. expelling on him and his murderous. with that i yield back. >> mr. connelly. >> example the chairman mentioned in iran is about to become a nuclear power. but why, how could that happen? was there an agreement anywhere that pushed back the development of iran and was working in all respects in terms of metrics? >> it was called the jcpoa is verified by international inspectors and our own intelligence community. they decided to leave the agreement. >> afghanistan. a terrible thing that happened in august of 2021, but did it have any antecedent for example was there anybody that said we are going to negotiate with of the taliban and exclude of the government of afghanistan where allegedly supporting, does that happen? >> the agreement with the taliban and called for the withdrawal