Bitcoin ETF Reaction; Republican Debate; Trump Fraud Trial
On today's podcast:
1) US regulators for the first time approved exchange-traded funds that invest directly in Bitcoin, a move heralded as a landmark event for the roughly $1.7 trillion digital-asset sector that will broaden access to the largest cryptocurrency on Wall Street and beyond.
2) A monthly report on US consumer prices due Thursday will probably show another soft inflation reading thanks in part to more declines in the goods sector, according to Bloomberg Economics.
3) Nikki Haley and Ron DeSantis immediately went on the attack in the final Republican debate before the Iowa caucuses, relentlessly accusing each other of lying and flip-flopping on issues.
4) The judge overseeing New York’s $370 million civil fraud trial against Donald Trump derailed the former president’s plan to make a statement during closing arguments in the case Thursday, citing Trump’s refusal to agree to standard court rules about what he can and cannot say.
Full transcript:
Good morning. I'm John Tucker and I'm Karen Moscow. Here are the stories we're following today. Bitcoin is trading up seven tenths of a percent to around forty six two hundred and forty dollars. This comes after US regulators for the first time approved exchange traded funds that invest directly in bitcoin. It's a move heralded as a landmark event for the roughly one point seven trillion dollar asset sector, and Bloomberg Crypto editor Anna Aurera says it will broaden access to the largest cryptocurrency the hope. Bitcoin proponents and sort of crypto proponents think it's a big deal because it sort of gives easier access to mainstream investors to investing in crypto. One of the big issues with cryptocurrencies is that you need to self custody it, and that that's exposed is used to hacks and people just stealing your asset. In this case, you would have a custodian like coinbase sort of people that do it professionally holding the underlying bitcoin, and you're just buying shares in it. Bloomberg Santa Rara says the sec authorized funds from industry heavyweights black Rock and Vasco and Fidelity to smaller competitors including Valkyrie, to begin trading today. Well, John, reaction is pouring in after the approval of the bitcoin ETF and we come up with SEC Commissioner hester Purse. I'm delighted that we're at the end of this saga. I know there's still there's still u there's still pieces of it to go, but I think this is a big milestone. The decision by hester Perse and the SEC comes a day after a false post on the SEC's x account claiming that the agency had approved the ETFs. The regulator subsequently said that the account had been compromised and OARC Investment Management. Kathy Woods says the approval of the spot bitcoin ETF will be a price moving event long term. She spoke with Bloomberg's Carol Masser after the SEC decision. I was speaking to Eric belchunis her colleague, and according to his estimates, there's there's four billion dollars waiting, you know, in the wings. And I said to him, well, from your lips to God's ears, that would be amazing. Kathy would also slam the SEC Cherry Gary Gensler. She says Gensler denigrated the whole cryptospace by reiterating the agency does not endorse digital assets. Well, we want to turn to the economy now, John, and Wall Street is bracing for the latest inflation report. Economists are forecasting consumer prices rose two tenths of a percent in December. Let me get a preview from Bloomberg's Michael McKee. The question going into the CPI report is who will care? The Fed is already locked into no change at the January thirty first meeting, so and as expected number won't affect the Central Bank's decision. It's the bond market that matters, at least in the short run. Headline inflation is expected to rise a base effect because inflation printed negative in December of twenty twenty two, but core inflation is forecast to keep falling. That's what the Fed wants to see. Michael McKee, Bloomberg Radio. All right, thanks Mike. The ahead of the New York Federal reserves as the interustrates are now high enough to bring down inflation. But John Williams also suggest that policy makers need more evidence that price rises are slowing before they start easing. My base case is that the current restrictor stance in Monte policy will continue to restore balance and bring inflation back to our two percent longer run goal. I'll expect that we will need to maintain a restricted stance of policy for some time to fully achieve our goals, and it will only be appropriate to dial back the degree of policy restraint when we're confident that inflation is moving towards toward two percent on a sustained basis, as New York Fed President John Williams, adding that any rate cuts would be dependent on the path of inflation and the economy. Turning to politics, the gloves were off during last night's Republican debate in Des Moines, Iowa, between Nicky Haley and Ronda Santis. During the debate on CNN, Hailey accused of Santus of mismanaging his campaign. He has blown through one hundred and fifty million dollars. I do know how you do that through his campaign. He has nothing to show for it. He spent more money on private planes than he has on commercials trying to get islands to vote for him. If you can't manage a campaign, how are you going to manage a country? Disantus accused Haley of making misleading statements about her record as governor. That word salad is the problem. Governor says he's always supported school choice and she failed to deliver. She blames other people. Leadership is about getting things done, stop making expect disantisin. Haley also talked about the border Ukraine, aid and abortion, and two people absent from the debate, Donald Trump and Chris Christie, the former New Jersey given or Chris Christie suspending his Republican presidential bid yesterday. From the moment I got into the race, the decision that I made was really simple. I would rather lose by telling the truth then lie in order to win. Christy also said he was going to make sure that he does not enable Donald Trump to ever be president of the U the United States again. Meanwhile, John Trump did not appear at the debate because he was at a nearby town hall. Today, the GOP front runner set to make an appearance in New York at the civil far on trial against him and Bloomberg's Amy Morris hands the latest. Today's hearing will cap a eleven week long trial in which New York Attorney General Letitia James seeks to ban Trump from the real estate industry within the state. Trump wants to deliver a personal statement while in court his own closing argument, but would not agree to the limits the judge said on what he could say, so he won't be allowed, just as Arthur Engern had already held Trump liable for fraud and is expected to deliver a verdict in coming weeks now. In addition to this case, Trump also faces five other trials, including a defamation suit in less than a week. Amy Morris Bloomberg Radio Time Now for a look at some of the other stories making news around the world, and for that were joined by Bloomberg's Amy Morris Amy Good Morning, Good Morning. Care and Transportation Secretary Pete Buddhajet says Boeing's tax nine airplanes airplanes rather, will remain grounded until regulators say that they are safe to fly. That dashes hopes for a quick return to the skies. Our concern and our fidelity is not to the success of any company. It is to the safety of the traveling public. Secretary Buddha judge did not specify how long it could take, but says the process will not be rushed. He adds Boeing has to demonstrate that every planet delivers to airlines is one hundred percent safe. President Biden's son is scheduled to appear in federal court today in Los Angeles on tax charges. Today's hearing will be an arraignment for Hunter Biden, who was accused of choosing not to pay more than a million dollars in taxes and evading other taxes. House Republicans yesterday conducted a hearing to hold Biden in contempt of Congress for defying a subpoena to sit for a closed door deposition, but Hunter Biden made a surprise visit and said he would only testify in a public forum. Biden's attorney, Abby Lowell Hunter chows a hearing we're Republicans or could not distort, manipulate, or misuse that testimony. And Republicans have tried to tie Hunter Biden's business dealings to his father, but acknowledge they have found no concrete evidence of wrongdoing. And former President Donald Trump is staying quiet on who his choice for a vice president might be. Well, I can't tell you that, really, I mean, I know who it's going to be. Give us a hint. I'll give you. We'll do another show sometime. During last night's Fox Newstown Hall event, Trump said he's open to his vice presidential choice being someone who's currently competing against him for the GOP nomination. Experts who identify and manage global risks say there is a high chance of a global catastrophe happening within a decade. The World Economic Forum survey shows nearly two thirds of respondents expect the higher chance of disaster in the next ten years. About thirty percent expect the same in the next two years. The report sites risks from misinformation, a potential recession, and extreme weather events, and a record number of Americans are signed up for the Affordable Care Act. This year, the Biden administration announced more than twenty million people signed up for health insurance plans under ACA, beating last year's record of sixteen million, and that number is likely to increase as Americans have until January seventeenth to enroll Global News twenty four hours a day and whenever you want with Bloomberg News. Now I may me Morris and this is Bloomberg Karen we Amy. Thank you what we do bring you news throughout the day here on Bloomberg Radio. But now you can get the latest news on demand, and that means whenever you want it. You can just subscribe to Bloomberg and News Now to get the latest headline to the click of a button. You can get informed on your schedule. You can listen and subscribe to Bloomberg and News Now on the Bloomberg Business Now, Bloomberg dot com plus Apples, Spotify, and anywhere else you get your podcasts. And it's time now for the Bloomberg Sports Update. Here's John stash Hour John Ken. To truly appreciate what Nick Saban accomplished as the football coach at Alabama, you have to look at where the program was before he got there. They had a couple of seasons with only four wins, another with three, and he only won seven in his first season on the job. But in his next sixteen years, Saban won one hundred and ninety nine games and lost only twenty three. He won six national championships in a twelve year span, and when you throw in that he also won one at LSU. Saban has to be considered one of the greatest coaches, if not the greatest, in college football history. He's retiring at the age of seventy two. Still at the top of his game. Alabama nearly beat the eventual national champion Michigan in the College Football Playoffs semifinals. Pete Carroll also seventy two years old. He's no longer the coach of the Seahawks. He was great at USC went to Seattle and in fourteen years got the Seahawks to the playoffs nine times, won a Super Bowl. He won fifty one more games than any other coach that the Seahawks have ever had. And now seven NFL teams are looking for a new coach, so that doesn't count. In New England, where seventy one year old Bill Belichick is expected to de park Kawhi Leonard a new deal with the Clippers. He would have been a free agent after the season. It's a three year extension. Ought to make a little under the Supermax Clippers. One last night so to the Celtics in overtime over Minnesota. Boston now eighteen and zero at home, the Wizards dropped to six and thirty one. They lost that Indiana. John stash Aller Bloomberg Sports from coast to coast, from New York to San Francisco, Boston to Washington, DC, nationwide on sirisxam the Bloomberg Business app in Bloomberg dot com. This is Bloomberg Daybreak. Good morning, I'm John Tucker. We want to continue our coverage of the SEC authorization of bitcoin spot ETFs and what the breakthrough means for the broader crypto space. Yesterday, Archie Investment CEO Kathy Wood, longtime Bitchi Bull, joined Bloomberg BusinessWeek host Carol for a conversation on Bloomberg Radio and the platform X discussing the SEC decision and what it means for bitcoin and other digital assets, and the statement afterwards from the SEC Commissioner, Gary Gensler. Let's bring you part of that discussion right now. When you're talking about institutions that you know have been very fearful of this space because of Gary Gensler, and you know all of the drama, I think they're going to tread lightly. I don't know if you saw, but Gary Gensler put out a piece today right as we're about to go effective, and I'm sure we all went effective roughly around the same time, and he just denigrated the whole crypto space, and I was just like, I couldn't believe it. So anyway, it's with that kind of trepidation that institutions are going to have to you know, work through and do all of their due diligence. However, I do think that a lot of investors have considered, you know, have been curious. And you'll see we've been from a marketing campaign. We've been using this tagline, aren't you a bit curious? There are so many people who are curious out there. Of course, a lot of our existing clients know all about bitcoin because we have owned it since twenty fifteen, but there are a lot of people who really have a hunger to know, and we can see that as more and more people read our research, tune into our Bitcoin Brainstorm that we do with Rod and Bitcoin Park in Nashville, Tennessee, read our bitcoin monthlies and you know, read all we have to say about crypto and blogs and in our brainstorm summary. So you know, we are getting all the curiosity. I think that's why we started. So we know a lot of people are waiting and believe it or not, Carol, the curious extend to state pension funds and state treasurers we're talking to, So it's a really broad swap. Well, catch people and I do wonder what you think success will be out of the gate in terms of investment flows. What's your hope, what's your goal or estimate in terms of bringing investors into the fund. Well, it's very interesting. I was we were I was speaking to Eric Beltunis, her colleague, and according to his estimates, there's there's four billion dollars waiting, you know, in the wings. And I said to him, well, from your lips to God's ears, that would be amazing. And you know, we hope we get our fair share of it. I mean, we've certainly, we've certainly done a lot to educate the community, and we experience a lot of gratitude for that too, from from from the innovation communities, including the bitcoin community, but also from the financial community, those who really are trying to find the next big idea. And can I ask you, as you mentioned SEC chair Gary Gensler at the top, and as the headlines crossed the Bloomberg that he the SEC approved all of those proposals for the spoppy coin ets yours included, along with everyone else the eleven. He also said investors should be cautious on crypto. He said SEC's action doesn't imply approval of crypto exchanges. And if you look at all the SEC filings yours included, there's a long list of concerns that there's This is still kind of a new concept and new idea. The old guard, you know, basically throw out there all kinds of risks and you know, some people call it fear uncertainty and doubt. It happens every time, Carol, And I'm not saying it's a bad thing for people to really do their homework. They should do their homework, they should understand the risks. But this is par for the course in disruptive innovation, you know, Everett. And thank you, Carol. You gave us our first interview twenty fifteen when we were barely off the ground. You believed in us back then. And at the time, you remember, we were talking about Tesla, So fear uncertainty and doubt, not even about autonomous which is the next set of fears, but about evs and wouldn't traditional auto manufacturers absolutely choked them to death. This is completely new DNA, and so it's the old DNA as the old car companies were the old DNA, you know, basically bashing the old new DNA. That was Arnick Advesce with Kathy Wood speaking with our Carol Master on Bloomberg Radio and the social media platform x and we continue our coverage of the approval of the Bitcoin ETF with the SEC Commissioner Hester perse Jones are Kelly Lines and Joe Matthew on Bloomberg's Balance of Power to discuss the implications of the SEC's approval of the exchange traded funds that invests directly in bitcoin, as well as the future of crypto regulation and the sec x account hack. Let's go to part of that discussion. I'm delighted that we're at the end of this saga. I know there's still pieces of it to go, but I think this is a big milestone. Well it's a milestone certainly for these bitcoin products, but it also raises a question of what sort of precedent this sets. If you look at the statement from the chairman, Gary Ginsler, he was very specific that this is specific to these bitcoin products, which are non security commodities, and there's a question of what this could mean in the future for essentially everything else. Is that door completely closed? The chair is right to point out that this is specific to a particular set of products. But obviously precedent matters, and so you look at the reasoning and people will do this. They'll look at the reasoning in the in the order, and they'll seek to apply it to other facts and circumstances as appropriate. So I think the only thing I will say is that one of my complaints in this area has been that we haven't always stuck with precedent when when it comes to these kinds of exchange traded products. We haven't necessarily applied the same standards that we do with respect to to other kinds of exchange traded products. But it is a precedent people will point to. That's the question. Of course, we're all asking whether it opens the door for other ETFs backed by other cryptocurrencies. Commissioner, is that in our near future? Again, you know, every application has to be considered on its facts and circumstances. But I one of the things that I think that we have to acknowledge is that when we when we apply a particular rationale to one particular product, people will ask us to apply it to other products as well. What kind of fiduciary responsibilities are there for investment advisors for their clients before allowing them to put money into these products. It's like anything else. A fiduciary is supposed to look out for the interests of the investors that she's working with, and that means taking into account the specific circumstances of that investor, the risk tolerance, the other elements of that investor's portfolio, and so it's not a cookie cutter answer one way or the other. Fiduciaries are paid to make good decisions that are appropriate for that particular investor. There were a few moments yesterday when we thought this had been approved a day earlier Commissioner, as you well know, everything worked out with the Twitter account at the SEC. Well it is, I mean, as there was a statement I think that came out saying that we are going to be looking into this and working with law enforcement at the WORD to figure out how this happened, how yesterday's event happened, and I hope that we get to the bottom of it, and I hope that we're as transparent when we explain what happened as we expect the companies that we regulate to be when they experience a similar event. Well, that certainly has gotten the attention of many on Capitol Hill. Commissioner, there have been many Congressional Republicans who have made their opinions known about the SEC under this chair for some time now. I'd also point to a statement that we got out from that House Financial Services Committee after this. They maintain that will legislatition to provide clarity and certainty for digital assets remain necessary. The steps taken today are a significant improvement over what they call the SEC's track record of regulation by enforcement until that legislation exists. Even with these approvals aside, should we expect that regulation by enforcement to continue? Well, I haven't seen much progress on US as a regulator setting out clear rules of the road when it comes to crypto products and services, and I think that that's been a complaint that I've had, It's been a complaint that others have had. We could just as we changed our tune here, we could change our tune on that, and so I remain hopeful that we will. That said, Congress has expressed an interest in legislating in this area, and I look forward to seeing their work in this area. And they have a clear interest in figuring out which regulatory which regulators should have authority in this area, and I look forward to seeing what comes of that. There are also just questions around fraud and manipulation. The argument initially about what Chairgainstler was so concerned with about these products in the first place. Spot products specifically compared to futures. Obviously, a court has ruled that that distinction was arbitrary and capricious. But do you share any concern if people put out false information about a traditional security, a traditional company, the stock of that company can also the price can also move. So this is not unique to bitcoin or bitcoin exchange traded products. Obviously, we will continue to look at the markets and at the markets for these bitcoin exchange traded products specifically, and if there is bad activity and it's it's within the ETP marketplace, we have authority there to investigate and bring enforcement actions as needed. You're listening to Bloomberg Daybreak today, your morning brief the story's making news from Wall Street to Washington and beyond. Look for us on your podcast beet at six am Eastern each morning on Apple, Spotify, and anywhere else you get your podcasts. You can also listen live each morning starting at five am Wall Street time on Bloomberg eleven three to zero in New York, Bloomberg ninety nine to one in Washington, Bloomberg one O six one in Boston, and Bloomberg nine sixty in San Francisco. Our flagship New York station is also available on your Amazon Alexa devices. Just say Alexa Play Bloomberg eleven thirty plus. Listen coast to coast on the Bloomberg Business app, serious XMVI iHeartRadio app, and on Bloomberg dot Com. I'm John Tucker and I'm Karen Moscow. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Daybreak
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Good morning. 0:00:03.000 --> 0:00:05.640 I'm John Tucker and I'm Karen Moscow. Here are the 0:00:05.680 --> 0:00:07.160 stories we're following today. 0:00:07.760 --> 0:00:10.560 Bitcoin is trading up seven tenths of a percent to 0:00:10.600 --> 0:00:14.240 around forty six two hundred and forty dollars. This comes 0:00:14.360 --> 0:00:18.639 after US regulators for the first time approved exchange traded 0:00:18.680 --> 0:00:22.480 funds that invest directly in bitcoin. It's a move heralded 0:00:22.640 --> 0:00:25.200 as a landmark event for the roughly one point seven 0:00:25.320 --> 0:00:29.680 trillion dollar asset sector, and Bloomberg Crypto editor Anna Aurera 0:00:29.800 --> 0:00:33.720 says it will broaden access to the largest cryptocurrency the hope. 0:00:33.760 --> 0:00:36.400 Bitcoin proponents and sort of crypto proponents think it's a 0:00:36.440 --> 0:00:38.920 big deal because it sort of gives easier access to 0:00:39.000 --> 0:00:41.520 mainstream investors to investing in crypto. One of the big 0:00:41.560 --> 0:00:44.800 issues with cryptocurrencies is that you need to self custody it, 0:00:44.840 --> 0:00:47.040 and that that's exposed is used to hacks and people 0:00:47.080 --> 0:00:49.280 just stealing your asset. In this case, you would have 0:00:49.320 --> 0:00:52.159 a custodian like coinbase sort of people that do it 0:00:52.159 --> 0:00:55.240 professionally holding the underlying bitcoin, and you're just buying shares 0:00:55.280 --> 0:00:55.520 in it. 0:00:56.120 --> 0:00:59.920 Bloomberg Santa Rara says the sec authorized funds from industry 0:01:00.040 --> 0:01:04.319 heavyweights black Rock and Vasco and Fidelity to smaller competitors 0:01:04.400 --> 0:01:07.000 including Valkyrie that begin trading today. 0:01:08.040 --> 0:01:11.040 Well, John, reaction is pouring in after the approval of 0:01:11.120 --> 0:01:14.319 the bitcoin ETF, and we come up with SEC Commissioner 0:01:14.319 --> 0:01:15.120 hester Purse. 0:01:15.520 --> 0:01:18.640 I'm delighted that we're at the end of this saga. 0:01:19.200 --> 0:01:22.440 I know there's still there's still u there's still pieces 0:01:22.480 --> 0:01:24.120 of it to go, but I think this is a 0:01:24.120 --> 0:01:25.280 big milestone. 0:01:25.400 --> 0:01:28.080 The decision by hester Perse and the SEC comes a 0:01:28.160 --> 0:01:30.840 day after a false post on the SEC's x account 0:01:30.880 --> 0:01:34.120 claiming that the agency had approved the ETFs. The regulator 0:01:34.240 --> 0:01:37.720 subsequently said that the account had been compromised. 0:01:37.319 --> 0:01:41.160 And OARC Investment Management. Kathy Woods says the approval of 0:01:41.200 --> 0:01:44.560 the spot bitcoin ETF will be a price moving event 0:01:44.680 --> 0:01:48.000 long term. She spoke with Bloomberg's Carol Masser after the 0:01:48.160 --> 0:01:49.200 SEC decision. 0:01:49.600 --> 0:01:54.760 I was speaking to Eric belchunis her colleague, and according 0:01:54.800 --> 0:01:59.840 to his estimates, there's there's four billion dollars waiting, you know, 0:02:00.080 --> 0:02:03.200 in the wings. And I said to him, well, from 0:02:03.240 --> 0:02:07.040 your lips to God's ears, that would be amazing. 0:02:07.680 --> 0:02:11.240 Kathy would also slam the SEC Cherry Gary Gensler. She 0:02:11.280 --> 0:02:16.840 says Gensler denigrated the whole cryptospace by reiterating the agency 0:02:16.919 --> 0:02:19.400 does not endorse digital assets. 0:02:19.720 --> 0:02:21.680 Well, we want to turn to the economy now, John, 0:02:21.720 --> 0:02:24.720 and Wall Street is bracing for the latest inflation report. 0:02:24.800 --> 0:02:28.000 Economists or forecasting consumer prices rose two tenths of a 0:02:28.120 --> 0:02:31.080 percent in December. Let me get a preview from Bloomberg's 0:02:31.160 --> 0:02:31.919 Michael McKee. 0:02:32.120 --> 0:02:35.400 The question going into the CPI report is who will care? 0:02:35.639 --> 0:02:37.679 The Fed is already locked into no change at the 0:02:37.720 --> 0:02:41.119 January thirty first meeting, so and as expected number won't 0:02:41.160 --> 0:02:44.560 affect the Central Bank's decision. It's the bond market that matters, 0:02:44.760 --> 0:02:47.679 at least in the short run. Headline inflation is expected 0:02:47.680 --> 0:02:50.959 to rise a base effect because inflation printed negative in 0:02:51.040 --> 0:02:54.440 December of twenty twenty two, but core inflation is forecast 0:02:54.480 --> 0:02:56.960 to keep falling. That's what the Fed wants to see. 0:02:57.080 --> 0:02:58.520 Michael McKee, Bloomberg Radio. 0:02:58.560 --> 0:03:00.280 All right, thanks Mike. The ahead of the New York 0:03:00.320 --> 0:03:02.800 Federal reserves as the interistrates are now high enough to 0:03:02.840 --> 0:03:06.320 bring down inflation. But John Williams also suggested that policy 0:03:06.360 --> 0:03:10.720 makers need more evidence that price rises are slowing before 0:03:10.840 --> 0:03:11.880 they start easing. 0:03:12.200 --> 0:03:15.040 My base case is that the current restricted stance in 0:03:15.120 --> 0:03:18.920 Monte policy will continue to restore balance and bring inflation 0:03:19.040 --> 0:03:22.239 back to our two percent longer run goal. I'll expect 0:03:22.240 --> 0:03:24.400 that we will need to maintain a restricted stance of 0:03:24.480 --> 0:03:27.960 policy for some time to fully achieve our goals, and 0:03:28.000 --> 0:03:30.359 it will only be appropriate to dial back the degree 0:03:30.360 --> 0:03:34.040 of policy restraint when we're confident that inflation is moving 0:03:34.040 --> 0:03:37.360 towards toward two percent on a sustained basis. 0:03:37.080 --> 0:03:39.920 As New York Fed President John Williams, adding that any 0:03:40.040 --> 0:03:42.800 rate cuts would be dependent on the path of inflation 0:03:43.040 --> 0:03:44.000 and the economy. 0:03:44.240 --> 0:03:44.400 Well. 0:03:44.440 --> 0:03:46.760 Turning to politics now, John, The gloves were off during 0:03:46.840 --> 0:03:49.640 last night's Republican debate in Iowa between Nicki Haley and 0:03:49.760 --> 0:03:53.120 Ron DeSantis. During the CNN event, Hailey accused of Stantus 0:03:53.200 --> 0:03:54.720 of mismanaging his campaign. 0:03:55.160 --> 0:03:58.400 He has blown through one hundred and fifty million dollars. 0:03:58.480 --> 0:04:01.400 I don't know how you do that through his campaign. 0:04:01.400 --> 0:04:03.760 He has nothing to show for it. He spent more 0:04:03.800 --> 0:04:06.720 money on private planes than he has on commercials trying 0:04:06.720 --> 0:04:08.000 to get islands. 0:04:07.560 --> 0:04:08.320 To vote for him. 0:04:08.600 --> 0:04:10.720 If you can't manage a campaign, how are you going 0:04:10.760 --> 0:04:11.680 to manage a country? 0:04:11.960 --> 0:04:15.440 Disantus accused Haley of making misleading statements about her record 0:04:15.440 --> 0:04:17.360 as governor. Well, that word. 0:04:17.160 --> 0:04:18.239 Salad is the problem. 0:04:19.160 --> 0:04:22.239 He's always supported school choice and she failed to deliver. 0:04:22.400 --> 0:04:23.600 She blames other people. 0:04:23.839 --> 0:04:26.800 Leadership is about getting things done, stop making. 0:04:26.600 --> 0:04:30.400 Except DeSantis and Haley also discussed the border, Ukraine, and 0:04:30.480 --> 0:04:31.679 abortion and Karen. 0:04:31.680 --> 0:04:34.960 Two people noticeably absent from the debate, Donald Trump and 0:04:35.040 --> 0:04:37.960 Chris Christie, the former New Jersey given and Chris Christie 0:04:37.960 --> 0:04:40.960 suspended his presidential bid A hand of the event. 0:04:41.120 --> 0:04:44.400 From the moment I got into the race. The decision 0:04:44.560 --> 0:04:49.960 that I made was really simple. I would rather lose 0:04:50.080 --> 0:04:54.120 by telling the truth then lie in order to win. 0:04:54.320 --> 0:04:56.800 Christy also says he's going to make sure he does 0:04:56.839 --> 0:04:59.640 not enable Donald Trump to ever be president again. 0:05:00.120 --> 0:05:02.440 While speaking at the former President John He was counter 0:05:02.520 --> 0:05:04.960 programming the debate last night, appearing in a town. 0:05:04.760 --> 0:05:05.839 Hall on Fox News. 0:05:06.080 --> 0:05:07.960 He used the platform to lay out his plan to 0:05:08.000 --> 0:05:09.000 deport immigrants. 0:05:09.320 --> 0:05:13.400 We are going to have the largest deportation effort in 0:05:13.440 --> 0:05:14.600 the history of our country. 0:05:14.839 --> 0:05:17.880 We're bringing everybody back to where they came from. 0:05:17.920 --> 0:05:19.000 We have no choice. 0:05:19.120 --> 0:05:21.880 Former President Trump is promising to fix the situation at 0:05:21.880 --> 0:05:24.839 the border within twenty four hours of taking office. 0:05:24.600 --> 0:05:27.560 And meantime, Donald Trump's legal troubles continued today he makes 0:05:27.600 --> 0:05:30.520 an appearance at his civil fraud trial in New York. 0:05:30.839 --> 0:05:32.760 More from Bloomberg's Amy Morris. 0:05:33.160 --> 0:05:35.919 Today's hearing will cap a eleven week long trial in 0:05:35.960 --> 0:05:39.040 which New York Attorney General Letitia James seeks to ban 0:05:39.160 --> 0:05:42.360 Trump from the real estate industry within the state. Trump 0:05:42.360 --> 0:05:45.120 wants to deliver a personal statement while in court his 0:05:45.160 --> 0:05:47.960 own closing argument, but would not agree to the limits 0:05:48.000 --> 0:05:50.039 the judge said on what he could say, so he 0:05:50.160 --> 0:05:53.279 won't be allowed. Just as Arthur Engern had already held 0:05:53.279 --> 0:05:56.000 Trump liable for fraud and is expected to deliver a 0:05:56.080 --> 0:05:58.640 verdict in coming weeks now. In addition to this case, 0:05:58.680 --> 0:06:02.480 Trump also faces five other trials, including a defamation suit. 0:06:02.640 --> 0:06:05.320 In less than a week. Amy Moore as Bloomberg Radio. 0:06:05.480 --> 0:06:07.640 All right, Amy, thank you, and Chesapeake has agreed to 0:06:07.720 --> 0:06:11.400 buy Southwestern Energy for seven point four billion dollars. And 0:06:11.680 --> 0:06:17.640 this is Bloomberg Time Now for a look at some 0:06:17.640 --> 0:06:19.520 of the other stories making news around the world. And 0:06:19.520 --> 0:06:22.800 for that we're joined by Bloomberg's Amy Morris. Amy, good morning, 0:06:23.200 --> 0:06:24.039 Good morning, Karen. 0:06:24.120 --> 0:06:29.160 Transportation Secretary Pete Budajet says Boeing's Max nine airplanes. Airplanes 0:06:29.240 --> 0:06:32.640 rather will remain grounded until regulators say that they are 0:06:32.680 --> 0:06:35.919 safe to fly. That dashes hopes for a quick return 0:06:35.960 --> 0:06:36.640 to the skies. 0:06:36.760 --> 0:06:41.600 Our concern and our fidelity is not to the success 0:06:41.640 --> 0:06:43.680 of any company. It is to the safety of the 0:06:43.680 --> 0:06:44.360 traveling public. 0:06:44.400 --> 0:06:47.440 Secretary Budajete did not specify how long it could take, 0:06:47.520 --> 0:06:50.200 but says the process will not be rushed. He adds 0:06:50.279 --> 0:06:53.680 Boeing has to demonstrate that every planet delivers to airlines 0:06:53.760 --> 0:06:57.279 is one hundred percent safe. President Biden's son is scheduled 0:06:57.320 --> 0:06:59.800 to appear in federal court today in Los Angeles on 0:06:59.839 --> 0:07:03.440 tax charges. Today's hearing will be an arraignment for Hunter Biden, 0:07:03.480 --> 0:07:06.120 who was accused of choosing not to pay more than 0:07:06.120 --> 0:07:10.320 a million dollars in taxes and evading other taxes. House 0:07:10.440 --> 0:07:13.840 Republicans yesterday conducted a hearing to hold Biden in contempt 0:07:13.880 --> 0:07:16.400 of Congress for defying a subpoena to sit for a 0:07:16.440 --> 0:07:20.200 closed door deposition, but Hunter Biden made a surprise visit 0:07:20.440 --> 0:07:22.960 and said he would only testify in a public forum. 0:07:23.320 --> 0:07:25.160 Biden's attorney, Abby Lowell. 0:07:25.360 --> 0:07:30.400 Hunter chose a hearing where Republicans or could not distort, manipulate, 0:07:30.880 --> 0:07:32.800 or misuse that testimony. 0:07:32.960 --> 0:07:36.000 Republicans have tried to tie Hunter Biden's business dealings to 0:07:36.040 --> 0:07:39.120 his father, but acknowledge they have found no concrete evidence 0:07:39.160 --> 0:07:42.640 of wrongdoing, and former President Donald Trump is staying quiet 0:07:42.680 --> 0:07:45.440 on who his choice for a vice president might be. 0:07:45.560 --> 0:07:46.880 Well, I can't tell you that, really. 0:07:46.960 --> 0:07:48.960 I mean, I know who it's going to be. 0:07:49.040 --> 0:07:49.680 Give us a hint. 0:07:49.760 --> 0:07:50.160 I'll give you. 0:07:50.240 --> 0:07:51.400 We'll do another show sometime. 0:07:51.480 --> 0:07:54.360 During last night's Fox Newstown Hall event, Trump said he's 0:07:54.400 --> 0:07:57.480 open to his vice presidential choice being someone who's currently 0:07:57.520 --> 0:08:01.480 competing against him for the GOP nomination. Experts who identify 0:08:01.520 --> 0:08:04.000 and manage global risks say there is a high chance 0:08:04.040 --> 0:08:07.200 of a global catastrophe happening within a decade. The World 0:08:07.200 --> 0:08:10.920 Economic Forum survey shows nearly two thirds of respondents expect 0:08:10.920 --> 0:08:13.320 the higher chance of disaster in the next ten years. 0:08:13.520 --> 0:08:16.480 About thirty percent expect the same in the next two years. 0:08:16.840 --> 0:08:20.240 The report sites risks from misinformation, a potential recession, and 0:08:20.320 --> 0:08:23.360 extreme weather events. And a record number of Americans are 0:08:23.360 --> 0:08:25.680 signed up for the Affordable Care Act. This year, the 0:08:25.720 --> 0:08:28.840 Biden administration announced more than twenty million people signed up 0:08:28.880 --> 0:08:32.360 for health insurance plans under ACA, beating last year's record 0:08:32.360 --> 0:08:35.280 of sixteen million, and that number is likely to increase 0:08:35.480 --> 0:08:39.840 as Americans have until January seventeenth to enroll Global news 0:08:39.840 --> 0:08:41.720 twenty four hours a day and whenever you want with 0:08:41.720 --> 0:08:42.959 Bloomberg News Now. 0:08:43.120 --> 0:08:45.599 I may Mee Morris in this is Bloomberg Karen. 0:08:45.360 --> 0:08:46.920 All ran Amy, thank you what we do bring you 0:08:47.000 --> 0:08:49.920 news throughout the day here on Bloomberg Radio. But now 0:08:50.000 --> 0:08:52.040 you can get the latest news on demand, and that 0:08:52.160 --> 0:08:55.120 means whenever you want it. You can just subscribe to 0:08:55.160 --> 0:08:57.680 Bloomberg News Now to get the latest headline to the 0:08:57.679 --> 0:08:59.800 click of a button. You can get informed on you 0:08:59.840 --> 0:09:03.520 UA schedule. You can listen and subscribe to Bloomberg News 0:09:03.559 --> 0:09:07.960 Now on the Bloomberg Business app, Bloomberg dot Com, Bus Apples, Spotify, 0:09:08.080 --> 0:09:15.080 and anywhere else you get your podcasts. And it's time 0:09:15.080 --> 0:09:18.080 now for the Bloomberg Sports Update. Here's John stash Hour 0:09:18.240 --> 0:09:19.240 John Ken. 0:09:19.240 --> 0:09:23.000 To truly appreciate what Nick Saban accomplished as the football 0:09:23.040 --> 0:09:24.960 coach at Alabama, you have to look at where the 0:09:25.000 --> 0:09:27.320 program was before he got there. They had had a 0:09:27.320 --> 0:09:30.600 couple of seasons with only four wins, another with three, 0:09:30.679 --> 0:09:32.960 and he only won seven in his first season on 0:09:33.000 --> 0:09:36.120 the job, but in his next sixteen years, Saban won 0:09:36.160 --> 0:09:39.760 one hundred and ninety nine games and lost only twenty three. 0:09:39.840 --> 0:09:42.760 He won six national championships of a twelve year span, 0:09:43.120 --> 0:09:45.200 and when you throw in that he also won one 0:09:45.240 --> 0:09:47.880 at LSU. Saban has to be considered one of the 0:09:47.920 --> 0:09:51.600 greatest coaches, if not the greatest, in college football history. 0:09:51.640 --> 0:09:54.840 He's retiring at the age of seventy two, still at 0:09:54.920 --> 0:09:58.040 the top of his game. Alabama nearly beat the eventual 0:09:58.120 --> 0:10:02.400 national champion, Michigan in the College Football Playoffs semifinals. Pete Carroll, 0:10:02.600 --> 0:10:05.880 also seventy two years old, he's no longer the coach 0:10:05.920 --> 0:10:08.680 to the Seahawks. He was great at USC, went to 0:10:08.760 --> 0:10:11.160 Seattle and in fourteen years got the Seahawks to the 0:10:11.160 --> 0:10:14.200 playoffs nine times, won a Super Bowl. He won fifty 0:10:14.559 --> 0:10:17.360 fifty one more games than any other coach that the 0:10:17.360 --> 0:10:20.600 Seahawks have ever had. And now seven NFL teams are 0:10:20.640 --> 0:10:23.160 looking for a new coach, so that doesn't count New England, 0:10:23.200 --> 0:10:26.800 where seventy one year old Bill Belichick is expected to 0:10:27.040 --> 0:10:30.400 depart Kawhi Leonard a new deal with the Clippers. He 0:10:30.400 --> 0:10:32.600 would have been a free agent after the season. It's 0:10:32.640 --> 0:10:34.839 a three year extension, not actually make a little under 0:10:34.880 --> 0:10:37.640 the Supermax. Clippers won last night, so did the Celtics 0:10:37.679 --> 0:10:40.959 in overtime over Minnesota. Boston now eighteen and zero at home. 0:10:41.240 --> 0:10:43.920 The Wizards dropped to six and thirty one. They lost 0:10:43.960 --> 0:10:46.840 that Indiana. John stan Shaller Bloomberg. 0:10:46.400 --> 0:10:52.160 Sports from coast to coast, from New York to San Francisco, 0:10:52.520 --> 0:10:57.600 Boston to Washington, DC, nationwide on sirisxam, the Bloomberg Business 0:10:57.600 --> 0:11:04.480 Appen Bloomberg dot Com. This is Bloomberg Daybreak. 0:11:02.760 --> 0:11:05.240 And good morning. I'm John Tucker. We want to continue 0:11:05.280 --> 0:11:09.719 our coverage of the SEC authorization, the bitcoin spot ets 0:11:10.320 --> 0:11:14.080 and what the breakthrough means for the broader crypto space. Yesterday, 0:11:14.200 --> 0:11:18.640 our Kei Investment CEO Kathy Wood, longtime bitcoid Bull, joined 0:11:18.640 --> 0:11:22.720 Bloomberg Business Week host Carol for a conversation on Bloomberg 0:11:22.800 --> 0:11:27.120 Radio and the platform X discussing the SEC decision and 0:11:27.240 --> 0:11:30.719 what it means for bitcoin and other digital assets, and 0:11:30.760 --> 0:11:34.920 the statement afterwards from the SEC Commissioner Gary Gensler. Let's 0:11:34.960 --> 0:11:36.800 bring you part of that discussion right now. 0:11:37.160 --> 0:11:41.679 When you're talking about institutions that you know have been 0:11:41.800 --> 0:11:45.200 very fearful of this space because of Gary Gensler and 0:11:45.880 --> 0:11:49.080 you know, all of the drama. I think they're going 0:11:49.120 --> 0:11:51.440 to tread lightly. I don't know if you saw, but 0:11:51.760 --> 0:11:55.320 Gary Gensler put out a piece today right as we're 0:11:55.360 --> 0:11:58.559 about to go effective, and I'm I'm sure we all 0:11:58.600 --> 0:12:03.640 went effective roughly on the same time, and he just 0:12:03.960 --> 0:12:07.560 denigrated the whole crypto space. It was just like I 0:12:07.600 --> 0:12:13.240 couldn't believe it. So anyway, it's with that kind of 0:12:13.360 --> 0:12:17.440 trepidation that institutions are going to have to, you know, 0:12:17.760 --> 0:12:20.960 work through and do all of their due diligence. However, 0:12:21.960 --> 0:12:26.760 I do think that a lot of investors have considered, 0:12:27.320 --> 0:12:31.960 you know, have been curious. And you'll see we've been 0:12:32.440 --> 0:12:36.520 from a marketing campaign. We've been using this tagline, aren't 0:12:36.559 --> 0:12:41.000 you a bit curious? There are so many people who 0:12:41.120 --> 0:12:44.680 are curious out there. Of course, a lot of our 0:12:44.880 --> 0:12:48.720 existing clients know all about bitcoin because we have owned 0:12:48.720 --> 0:12:52.679 it since twenty fifteen, but there are a lot of 0:12:52.679 --> 0:12:55.040 people who really have a hunger to know, and we 0:12:55.040 --> 0:12:58.840 can see that as more and more people read our research, 0:12:59.000 --> 0:13:03.000 tune into our Bitcoin brainstorm that we do with Rod 0:13:03.200 --> 0:13:08.040 and uh and Bitcoin Park in Nashville, Tennessee. Read our 0:13:08.080 --> 0:13:12.520 Bitcoin monthlies and uh, you know, read all we have 0:13:12.600 --> 0:13:15.960 to say about crypto and blogs and and in our 0:13:16.400 --> 0:13:21.319 brainstorm summary. So you know, we are getting all the curiosity. 0:13:21.360 --> 0:13:23.760 I think that's why we started. So we know a 0:13:23.760 --> 0:13:26.200 lot of people are waiting, and believe it or not, 0:13:26.360 --> 0:13:33.680 Carol the curious extend to state pension funds and state 0:13:33.760 --> 0:13:39.040 treasurers we're talking to, So it's a really broad swap. 0:13:39.120 --> 0:13:40.040 Well, kety people, And. 0:13:40.040 --> 0:13:42.600 I do wonder what you think success will be out 0:13:42.640 --> 0:13:45.080 of the gate in terms of investment flows. What's your hope, 0:13:45.080 --> 0:13:48.320 what's your goal or estimate? Uh, in terms of bringing 0:13:48.400 --> 0:13:49.600 investors into the fund. 0:13:50.760 --> 0:13:54.719 Well, it's very interesting. I was we were I was 0:13:54.760 --> 0:14:01.840 speaking to Eric Beltunis, her colleague, and according to his estimates, 0:14:01.160 --> 0:14:05.720 there's there's four billion dollars waiting, you know, in the wings. 0:14:06.120 --> 0:14:08.880 And I said to him, well, from your lips to 0:14:09.080 --> 0:14:13.600 God's ears, that would be amazing. And you know, we 0:14:13.760 --> 0:14:15.520 hope we get our fair share of it. I mean, 0:14:15.520 --> 0:14:20.160 we've certainly, we've certainly done a lot to educate the community, 0:14:20.760 --> 0:14:24.440 and we experienced a lot of gratitude for that too, 0:14:24.720 --> 0:14:30.080 from from the innovation communities, including the bitcoin community, but 0:14:30.200 --> 0:14:33.840 also from the financial community, those who really are trying 0:14:33.840 --> 0:14:36.000 to find the next big idea. 0:14:36.400 --> 0:14:37.760 And this can I ask. 0:14:37.680 --> 0:14:40.400 You, as you mentioned SEC chair Gary Gensler at the 0:14:40.400 --> 0:14:45.160 top and as the headlines crossed the Bloomberg, that he 0:14:45.240 --> 0:14:49.840 the SEC approved all of those proposals for the spoppy 0:14:49.840 --> 0:14:53.000 coin ets yours included, along with everyone else the eleven. 0:14:53.520 --> 0:14:56.360 He also said investors should be cautious on crypto. He 0:14:56.400 --> 0:15:00.840 said SEC's action doesn't imply approval of crypto exchanges. And 0:15:01.080 --> 0:15:03.440 if you look at all the SEC filings, yours included, 0:15:03.480 --> 0:15:07.360 there's a long list of concerns that this is still 0:15:07.480 --> 0:15:10.120 kind of a new concept and new idea. 0:15:10.680 --> 0:15:15.120 The old guard, you know, basically throw out there all 0:15:15.240 --> 0:15:20.400 kinds of risks, and you know, some people call it fear, 0:15:20.600 --> 0:15:25.400 uncertainty and doubt. It happens every time, Carol, And I'm 0:15:25.440 --> 0:15:28.400 not saying it's a bad thing for people to really 0:15:28.440 --> 0:15:30.960 do their homework. They should do their homework, they should 0:15:31.040 --> 0:15:36.680 understand the risks. But this is par for the course 0:15:36.880 --> 0:15:41.680 in disruptive innovation, you know. And thank you, Carol. You 0:15:41.840 --> 0:15:46.000 gave us our first interview twenty fifteen. When we're barely 0:15:46.000 --> 0:15:49.480 off the ground. You believed in us back then, and 0:15:49.760 --> 0:15:53.080 at the time, you remember, we were talking about Tesla, 0:15:53.800 --> 0:15:57.760 so fear, uncertainty and doubt, not even about autonomous which 0:15:57.800 --> 0:16:01.240 is the next set of fears, but about evs and 0:16:01.320 --> 0:16:06.560 wouldn't traditional auto manufacturers absolutely choked them to death. This 0:16:06.680 --> 0:16:10.360 is completely new DNA, and so it's the old DNA 0:16:10.840 --> 0:16:14.760 as the old car companies were the old DNA, you know, 0:16:15.440 --> 0:16:17.760 basically bashing the old new DNA. 0:16:18.280 --> 0:16:21.120 That was Arnick Investment. Kathy Wood speaking with our Carol 0:16:21.160 --> 0:16:25.040 Master on Bloomberg Radio and the social media platform X 0:16:25.400 --> 0:16:27.680 and we continue our coverage of the approval of the 0:16:27.720 --> 0:16:32.920 Bitcoin ETF with the SEC Commissioner, Hester Purse, Jones, Are 0:16:33.240 --> 0:16:36.360 Killey Lines and Joe Matthew on Bloomberg's Balance of Power 0:16:36.440 --> 0:16:39.520 to discuss the implications of the SEC's approval of the 0:16:39.600 --> 0:16:43.640 exchange traded funds that invest directly in bitcoin, as well 0:16:43.680 --> 0:16:47.760 as the future of crypto regulation and the SEC x 0:16:48.000 --> 0:16:51.119 account hack. Let's go to part of that discussion. 0:16:51.720 --> 0:16:54.720 I'm delighted that we're at the end of this saga. 0:16:54.920 --> 0:16:57.360 I know there's still pieces of it to go, but 0:16:57.440 --> 0:16:59.800 I think this is a big milestone. 0:16:59.240 --> 0:17:02.680 Well, it's my stone certainly for these these bitcoin products, 0:17:02.680 --> 0:17:05.119 but it also raises a question of what sort of 0:17:05.240 --> 0:17:07.440 precedent this sets. If you look at the statement from 0:17:07.440 --> 0:17:10.119 the chairman, Gary Ginstler, he was very specific that this 0:17:10.200 --> 0:17:14.320 is specific to these bitcoin products, which are non security commodities, 0:17:14.320 --> 0:17:16.000 and there's a question of what this could mean in 0:17:16.040 --> 0:17:20.880 the future for essentially everything else. Is that door completely closed. 0:17:21.119 --> 0:17:23.080 The chair is right to point out that this is 0:17:23.320 --> 0:17:29.360 specific to a particular set of products, but obviously precedent matters, 0:17:29.400 --> 0:17:32.160 and so you look at the reasoning and people will 0:17:32.160 --> 0:17:34.359 do this. They'll look at the reasoning in the in 0:17:34.440 --> 0:17:37.200 the order, and they'll seek to apply it to other 0:17:37.280 --> 0:17:41.840 facts and circumstances as appropriate. So I think the only 0:17:41.880 --> 0:17:44.040 thing I will say is that one of my complaints 0:17:44.080 --> 0:17:46.000 in this area has been that we haven't always stuck 0:17:46.040 --> 0:17:49.640 with precedent when it comes to these kinds of exchange 0:17:49.640 --> 0:17:54.399 traded products. We haven't necessarily applied the same standards that 0:17:54.400 --> 0:17:57.840 we do with respect to other kinds of exchange traded products. 0:17:57.880 --> 0:17:59.879 But it is a precedent people will point to. 0:18:00.240 --> 0:18:02.040 That's the question, of course, We're all asking whether it 0:18:02.080 --> 0:18:07.320 opens the door for other ETFs backed by other cryptocurrencies, Commissioner, 0:18:07.359 --> 0:18:08.679 is that in our near future. 0:18:09.320 --> 0:18:12.720 Again, you know, every application has to be considered on 0:18:12.760 --> 0:18:16.640 its facts and circumstances. But I one of the things 0:18:16.680 --> 0:18:19.359 that I think that we have to acknowledge is that 0:18:19.400 --> 0:18:23.560 when we apply a particular rationale to one particular product, 0:18:23.680 --> 0:18:26.520 people will ask us to apply it to other products 0:18:26.600 --> 0:18:27.399 as well. 0:18:27.400 --> 0:18:32.199 What kind of fiduciary responsibilities are there for investment advisors 0:18:32.240 --> 0:18:34.920 for their clients before allowing them to put money into 0:18:34.960 --> 0:18:35.640 these products. 0:18:36.280 --> 0:18:41.080 It's like anything else. A fiduciary is supposed to look 0:18:41.119 --> 0:18:46.520 out for the interests of the investors that she's working with, 0:18:47.320 --> 0:18:52.199 and that means taking into account the specific circumstances of 0:18:52.240 --> 0:18:56.919 that investor, the risk tolerance, the other elements of that 0:18:57.040 --> 0:18:59.920 investor's portfolio, and so it's not a cookie cutter answer 0:19:00.080 --> 0:19:02.800 one way or the other. Fiduciaries are paid to make 0:19:02.960 --> 0:19:07.359 good decisions that are appropriate for that particular investor. 0:19:07.880 --> 0:19:09.679 There were a few moments yesterday when we thought this 0:19:09.760 --> 0:19:13.080 had been approved a day earlier, Commissioner, as you well know, 0:19:13.800 --> 0:19:16.560 everything worked out with the Twitter account at the SEC. 0:19:17.320 --> 0:19:21.320 Well it is, I mean, as there was a statement 0:19:21.320 --> 0:19:24.080 I think that came out saying that we are going 0:19:24.119 --> 0:19:26.480 to be looking into this and working with law enforcement 0:19:26.520 --> 0:19:31.840 authorities to figure out how this happened, how yesterday's event happened, 0:19:31.920 --> 0:19:34.080 and I hope that we get to the bottom of it, 0:19:34.160 --> 0:19:38.800 and I hope that we're as transparent when we explain 0:19:39.119 --> 0:19:42.600 what happened as we expect the companies that we regulate 0:19:42.640 --> 0:19:45.080 to be when they experience a similar event. 0:19:45.520 --> 0:19:48.560 Well, that certainly has gotten the attention of many on 0:19:48.680 --> 0:19:52.240 Capitol Hill. Commissioner, there have been many congressional Republicans who 0:19:52.240 --> 0:19:54.760 have made their opinions known about the SEC under this 0:19:54.880 --> 0:19:57.639 chair for some time now. I'd also point to a 0:19:57.640 --> 0:19:59.960 statement that we got out from that Financial House Finance 0:20:00.240 --> 0:20:03.600 Services Committee after this. They maintain that well, legislatition to 0:20:03.640 --> 0:20:07.119 provide clarity and certainty for digital assets remain necessary. The 0:20:07.160 --> 0:20:10.320 steps taken today are a significant improvement over what they 0:20:10.400 --> 0:20:14.760 call the SEC's track record of regulation by enforcement until 0:20:14.760 --> 0:20:18.480 that legislation exists. Even with these approvals aside, should we 0:20:18.520 --> 0:20:21.880 expect that regulation by enforcement to continue? 0:20:22.160 --> 0:20:25.000 Well, I haven't seen much progress on US as a 0:20:25.080 --> 0:20:29.000 regulator setting out clear rules of the road when it 0:20:29.080 --> 0:20:32.879 comes to crypto products and services, and I think that 0:20:32.880 --> 0:20:34.919 that's been a complaint that I've had, It's been a 0:20:34.920 --> 0:20:38.320 complaint that others have had. We could just as we 0:20:38.480 --> 0:20:41.480 changed our tune here, we could change our tune on that, 0:20:41.600 --> 0:20:44.760 and so I remain hopeful that we will That said, 0:20:45.359 --> 0:20:48.800 Congress has expressed an interest in legislating in this area, 0:20:48.800 --> 0:20:52.240 and I look forward to seeing their work in this area. 0:20:52.480 --> 0:20:56.520 And they have a clear interest in figuring out which 0:20:56.560 --> 0:20:59.480 regulatory which regulators should have authority in this area, and 0:20:59.520 --> 0:21:03.040 I look for to seeing what comes of that. 0:21:03.440 --> 0:21:06.840 There are also just questions around fraud and manipulation. The 0:21:06.960 --> 0:21:10.720 argument initially about what Chairgainstler was so concerned with about 0:21:10.720 --> 0:21:13.840 these products in the first place, spot products specifically compared 0:21:13.880 --> 0:21:16.680 to futures. Obviously, a court has ruled that that distinction 0:21:17.680 --> 0:21:21.160 was arbitrary and capricious. But do you share any concern. 0:21:21.000 --> 0:21:24.959 If people put out false information about a traditional security, 0:21:25.000 --> 0:21:28.480 a traditional company, the stock of that company can also 0:21:28.560 --> 0:21:31.080 the price can also move. So this is not unique 0:21:31.119 --> 0:21:36.520 to bitcoin or bitcoin exchange traded products. Obviously, we will 0:21:36.920 --> 0:21:40.520 continue to look at the markets and at the markets 0:21:40.560 --> 0:21:44.040 for these bitcoin exchange traded products specifically, and if there 0:21:44.119 --> 0:21:49.560 is bad activity and it's within the ETP marketplace. We 0:21:49.640 --> 0:21:53.720 have authority there to investigate and bring enforcement actions as needed. 0:21:55.400 --> 0:21:58.520 You're listening to Bloomberg Daybreak today, your morning brief. 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