WEBVTT - Binance Accused of Lying to Congress, TikTok's E-Commerce Ambitions 0:00:01.440 --> 0:00:06.720 From Marhart where Innovation, Money and Power Collie in Silicon Valley, NBN. 0:00:07.080 --> 0:00:11.119 This is Bloomberg Technology with Caroline Hyde and Ed loved Love. 0:00:24.640 --> 0:00:27.000 I'm Caroline hide A Bloomberg's World Headquarters in New York 0:00:27.400 --> 0:00:29.160 and Aurmed Ludlow in San Francisco. 0:00:29.280 --> 0:00:30.920 This is Bloomberg Technology. 0:00:31.000 --> 0:00:34.320 Coming up, we talk all things crypto from where venture 0:00:34.360 --> 0:00:37.639 capital flows aheaded to a letter from lawmakers accusing finance 0:00:37.960 --> 0:00:39.960 am lying to Congress. We'll have more ahead. 0:00:40.000 --> 0:00:43.760 Plus we'll discuss TikTok's e commerce ambitions as the company 0:00:43.760 --> 0:00:46.800 eyes a twenty billion dollar opportunity in the face of 0:00:46.840 --> 0:00:47.880 regulatory scrutiny. 0:00:48.120 --> 0:00:49.960 And of course we've got to talk Generator of AI 0:00:50.080 --> 0:00:52.360 with the CEO of a platform that helps revenue teams 0:00:52.400 --> 0:00:56.200 boost the productivity. It's all about increasing sales growth. More 0:00:56.800 --> 0:00:58.800 to come when it comes to the private market. Let's 0:00:58.800 --> 0:01:01.880 focus in on the public markets, because today bad news 0:01:01.920 --> 0:01:04.280 is good news. Today the job was claims are raging 0:01:04.319 --> 0:01:06.760 up higher the fastest in October twenty twenty one. That 0:01:06.920 --> 0:01:09.560 cooling of what is a very strong labor market in 0:01:09.560 --> 0:01:12.720 the US maybe boding well in terms of inflation, new pressures. 0:01:12.840 --> 0:01:14.840 What the federal reserve has to do to just calm 0:01:14.880 --> 0:01:18.520 down a very well, shall we say, too fiercely hot 0:01:18.760 --> 0:01:20.560 economy in the US. We're seeing up one point two 0:01:20.600 --> 0:01:22.360 percent on then as that one hundred as people hope 0:01:22.400 --> 0:01:24.319 maybe we don't have to high crates as fast as 0:01:24.319 --> 0:01:26.120 we had to. Two year yield therefore comes down in 0:01:26.200 --> 0:01:27.920 terms of six basis points on the front end of 0:01:27.959 --> 0:01:30.840 the curve. And actually we're seeing growth in other economies 0:01:30.920 --> 0:01:34.160 dollar week of versus the Japanese yen because Japan's economy 0:01:34.200 --> 0:01:37.160 grow faster than was previously expected. So this is the 0:01:37.240 --> 0:01:40.920 macro picture. Let's go into one key risk sentiment though 0:01:40.959 --> 0:01:42.400 for US, and then is the world of crypto. We're 0:01:42.400 --> 0:01:44.680 actually pushing on higher. Maybe the bad news is conducing 0:01:44.720 --> 0:01:46.360 the world of bitcoin. Int the moment, we're up one 0:01:46.400 --> 0:01:48.720 point three percent, but still just in that training range. 0:01:48.720 --> 0:01:51.120 We're locked at twenty six seven hundred at the moment 0:01:51.440 --> 0:01:53.840 this as we really do have that regulatory overhang ed. 0:01:53.880 --> 0:01:55.480 But I know you're digging into maybe some more of 0:01:55.520 --> 0:01:57.440 the smaller cap names that are already moving today. 0:01:58.080 --> 0:02:00.200 Yeah, it's interesting that then as that one hundred and 0:02:00.280 --> 0:02:02.400 marches on tech, A big driver of that there is 0:02:02.520 --> 0:02:06.320 newsflow driving different names. Amazon moving up to the upside 0:02:06.400 --> 0:02:09.280 three percent, one of the best performers, a top pick 0:02:09.320 --> 0:02:12.239 at Wells Fargo and margin View. Amazon's price target also 0:02:12.320 --> 0:02:16.320 raised at UBS on its AI benefits going through to 0:02:16.360 --> 0:02:18.840 the cloud division. Game stop moving to the downside. The 0:02:18.919 --> 0:02:21.240 CEO's gone and they missed on sales. We're going to 0:02:21.240 --> 0:02:23.200 bring you more details later in the program on that. 0:02:23.520 --> 0:02:26.600 Lucid now actually just modestly higher up two tents of percent. 0:02:26.880 --> 0:02:29.840 Had been markedly higher earlier in the session. Reuter's reporting 0:02:30.080 --> 0:02:33.200 that Lucid is going to move into the Chinese EV market, 0:02:33.320 --> 0:02:38.840 and then Adobe AIAIAI Generative AI subscription, boosting the sock 0:02:39.440 --> 0:02:41.440 by about five percent. I think it's at an August high. 0:02:41.440 --> 0:02:43.080 We will bring you the details of that later in 0:02:43.120 --> 0:02:46.280 the program as well. I'm also continuing to look at coinbase, 0:02:46.520 --> 0:02:48.400 look at shares of coinbas We're up for a second 0:02:48.400 --> 0:02:53.840 straight session since the sec sued Coinbase, accusing them of 0:02:54.320 --> 0:02:57.320 securities laws breaches. We're up one percent at the moment. 0:02:57.400 --> 0:02:57.800 Of course. 0:02:57.840 --> 0:03:01.320 Brian Armstrong, CEO, was on the show twenty four hours 0:03:01.320 --> 0:03:05.720 ago giving Coinbases defense, talking about why he's happy to 0:03:05.760 --> 0:03:09.360 go to courts and establish a baseline through the courts 0:03:09.760 --> 0:03:13.440 on how crypto exchanges should be governed in this country 0:03:13.639 --> 0:03:15.679 and also internationally. And we're going to dig deep into 0:03:15.680 --> 0:03:17.200 what's going on in this sector throughout the show. 0:03:17.240 --> 0:03:20.600 Character Yeah, let's talk about a different, different crypto exchange, 0:03:20.600 --> 0:03:24.919 a global one. Because parasenate Democrats, they're wanting the Justice 0:03:24.919 --> 0:03:29.000 Department to investigate whether Binance lied to lawmakers about its 0:03:29.040 --> 0:03:32.400 business practices. We in fact both with Senator Elizabeth Warren earlier, 0:03:32.480 --> 0:03:33.200 Let's just have a listen. 0:03:34.120 --> 0:03:38.400 It is a crime to lie to Congress, and we 0:03:38.560 --> 0:03:41.840 have gotten information from Binance. They've given answers to me 0:03:41.960 --> 0:03:45.720 and to others in Congress that seem to be entirely 0:03:45.760 --> 0:03:50.040 inconsistent with now what the now what the SEC is 0:03:50.120 --> 0:03:52.680 charging that Binance has done, and I want the Justice 0:03:52.720 --> 0:03:55.160 Department to take a look. If they lied to Congress, 0:03:55.320 --> 0:03:56.640 they need to be held accountable. 0:03:56.920 --> 0:03:59.920 We of course are out for comment from Binance, but 0:04:00.120 --> 0:04:02.360 this news is all in the back of the SEC 0:04:02.440 --> 0:04:05.120 suing the company and it's co found of cz joining 0:04:05.200 --> 0:04:08.040 us now is a host co host of lumost Cryptos. 0:04:08.120 --> 0:04:10.440 Kaylie Lynes in the building here and new coming been 0:04:10.640 --> 0:04:13.400 helping with the Bloomberg invest event and so important to 0:04:13.440 --> 0:04:15.640 have you here because what a week for crypto And 0:04:16.440 --> 0:04:18.799 why do we think we're hearing from these particular senators, 0:04:18.839 --> 0:04:19.799 what do they want done? 0:04:20.040 --> 0:04:22.960 Well, what Senator Warren as well as Senator Chris van Holland, 0:04:22.960 --> 0:04:25.880 another Democrat from Maryland want is for the Justice Department 0:04:25.920 --> 0:04:28.080 to look into this matter. Basically, this all comes down 0:04:28.120 --> 0:04:32.080 to the question of whether binance Us actually operated independently 0:04:32.360 --> 0:04:33.719 for biness dot com. 0:04:33.440 --> 0:04:34.520 The global entity. 0:04:34.600 --> 0:04:37.360 That is what Elizabeth Warren and Senator Van Holland want 0:04:37.400 --> 0:04:39.400 to find out. But that also is included in the 0:04:39.440 --> 0:04:42.640 allegations made by both the SEC and the CFTC in 0:04:42.680 --> 0:04:45.840 their lawsuit from several months ago, allegations that these were 0:04:45.880 --> 0:04:48.800 not in fact operating as separate entities. Of course, in 0:04:48.800 --> 0:04:51.320 the SEC lawsuit against the company and cz there's also 0:04:51.360 --> 0:04:55.800 a bevy of other charges wash trading, misleading customers, co 0:04:55.920 --> 0:04:59.800 mingling funds improperly, all of that. But what is important 0:04:59.800 --> 0:05:02.520 to is when the regulators put these cases forward, these 0:05:02.560 --> 0:05:06.560 are civil charges. When senators are asking the Justice Department 0:05:06.600 --> 0:05:09.400 to look into something like perjury, that could actually be 0:05:09.480 --> 0:05:10.680 a criminal charge. 0:05:11.400 --> 0:05:15.400 The point being though, that who's responsible for this CZ 0:05:15.520 --> 0:05:18.400 at the moment. I mean, he's out in the Middle East. 0:05:18.760 --> 0:05:21.440 He of course has various bank accounts. We seem to 0:05:21.480 --> 0:05:23.320 go unto stand as well that money is flowing, and 0:05:23.360 --> 0:05:24.880 I know Ed wants to get to that in a moment, 0:05:24.920 --> 0:05:28.200 But I mean, what about the leadership of you finance 0:05:28.320 --> 0:05:29.040 US ultimately. 0:05:29.320 --> 0:05:31.240 Well, that's a really good question because again it was 0:05:31.279 --> 0:05:35.080 supposed to be operating independently. A lot of pushback against 0:05:35.080 --> 0:05:37.520 that notion has been placed on the part of regulators 0:05:37.560 --> 0:05:39.960 and lawmakers as well. But the role of z is 0:05:39.960 --> 0:05:42.679 interesting because as you said, he is in the Middle 0:05:42.680 --> 0:05:46.120 East at the moment. There is also another DOJ investigation 0:05:46.200 --> 0:05:48.800 on going into potential sanctions violations. It would become a 0:05:48.880 --> 0:05:51.679 question of whether there actually was something brought to the DOJ, 0:05:51.839 --> 0:05:54.800 what potentially extradition might look like. So there's a lot 0:05:54.800 --> 0:05:58.719 of questions around the individual. In addition to the broader exchange, 0:05:58.720 --> 0:06:00.280 which of course is the biggest in the way world, 0:06:00.320 --> 0:06:03.000 and when the Justice Department is asking for a freeze 0:06:03.040 --> 0:06:05.080 of Binance US assets, we also have to keep in 0:06:05.160 --> 0:06:08.560 mind how this ultimately could impact the broader system. 0:06:09.240 --> 0:06:13.599 Overnight, Kathywood joined our colleagues over in Asia on that programming, 0:06:13.839 --> 0:06:17.440 and as we know, she's been adding to the holdings 0:06:17.440 --> 0:06:20.360 of Coinbase. This is what she had to say about 0:06:20.400 --> 0:06:22.320 the breadth of this situation, Kayley. 0:06:23.279 --> 0:06:27.479 And it is unfortunate that the SEC took action against 0:06:27.480 --> 0:06:30.520 Coinbase the day after Binance and then seemed to mud 0:06:31.040 --> 0:06:34.120 Chairman Genzler as he was on one of the major 0:06:34.160 --> 0:06:38.680 news channels, was trying to implicate Coinbase in the same 0:06:38.880 --> 0:06:45.440 way that he was implicating Binance. No, they're very different. 0:06:46.400 --> 0:06:49.239 You know, So we remind ourselves that in the same 0:06:49.279 --> 0:06:53.440 week the SEC sued both Coinbase and Binance. Interesting Brian 0:06:53.520 --> 0:06:56.360 Armstrong's comments twenty four hours ago that he felt the 0:06:56.360 --> 0:07:01.080 timing was relating to conflating two different seats. 0:07:01.320 --> 0:07:02.839 Yeah, and we have to keep in mind, as you 0:07:02.920 --> 0:07:05.919 rightly allude to, that the Binance allegations from the SEC 0:07:06.000 --> 0:07:10.720 are far wider ranging. Both were accused of violating securities laws. 0:07:10.720 --> 0:07:12.960 But that really is that in the staking product is 0:07:12.960 --> 0:07:15.480 what Coinbase was facing, so that it becomes just a 0:07:15.520 --> 0:07:18.440 definition question about what is and isn't a security and 0:07:18.520 --> 0:07:20.880 ultimately the jurisdiction of the SEC. And as we talk 0:07:20.920 --> 0:07:23.920 about interesting timing, I was on Capitol Hill on Tuesday 0:07:23.960 --> 0:07:26.400 at the House Agriculture Committee, which was holding a hearing 0:07:26.440 --> 0:07:29.560 on the market structure legislation that has been put forward 0:07:29.560 --> 0:07:31.960 by that committee and House Financial Services to try and 0:07:32.000 --> 0:07:35.800 delineate jurisdiction between the CFTC and having control of digital 0:07:35.840 --> 0:07:39.160 commodities and the SEC when it comes to digital securities. 0:07:39.160 --> 0:07:41.000 And many of the lawmakers I spoke with at that 0:07:41.080 --> 0:07:44.240 hearing suggested that the timing was interesting, and one of them, 0:07:44.280 --> 0:07:47.080 Congressman Zach Nunn, a Republican, was saying that it seems 0:07:47.080 --> 0:07:49.680 like Gary Gensler is trying to empire build and suggesting 0:07:49.680 --> 0:07:52.520 that he's trying to front run Congress actually setting the 0:07:52.600 --> 0:07:54.000 rules of the road by taking all of. 0:07:53.960 --> 0:07:57.760 This action at this time, Kaylee, this is Bloomberg. We 0:07:57.840 --> 0:08:00.640 follow the money. It's interesting to join the dots of 0:08:00.680 --> 0:08:04.200 twenty twenty three. I think back to silver Gate and 0:08:04.280 --> 0:08:07.720 Signature Bank and Bloomberg reporting that there is a seventy 0:08:07.760 --> 0:08:10.320 billion dollar trail as it relates to Binance and those 0:08:10.320 --> 0:08:10.880 two banks. 0:08:11.120 --> 0:08:13.600 Yeah, as we know these banks that are no longer 0:08:13.840 --> 0:08:17.080 in existence, both of them failed earlier this spring. Silvergate 0:08:17.120 --> 0:08:18.800 was really the first one. This was a bank that 0:08:18.840 --> 0:08:22.040 catered largely too crypto clients, and we now understand via 0:08:22.040 --> 0:08:25.280 an SEC filing that was actually filed in support of 0:08:25.280 --> 0:08:27.960 the motion to freeze the assets of Binance US, that 0:08:28.080 --> 0:08:30.120 seventy billion dollars, as you say d was funneled through 0:08:30.160 --> 0:08:34.280 both Silvergate and Signature Bank by Binance and related equities. 0:08:34.280 --> 0:08:37.600 I believe it was fifty billion dollars of deposits at 0:08:37.640 --> 0:08:40.600 Silvergate and then in another nineteen that Signature handled including 0:08:40.679 --> 0:08:43.959 large amount of large amounts of money moving in a 0:08:44.080 --> 0:08:46.960 couple of days periods. So it's unclear whether or not 0:08:47.000 --> 0:08:50.320 those banks actually flagged some of those transactions or not. 0:08:50.360 --> 0:08:52.560 But this is, as you say, just kind of following 0:08:52.600 --> 0:08:55.520 the money trail of this as the SEC puts forward 0:08:55.600 --> 0:08:56.560 these allegations and. 0:08:56.559 --> 0:09:00.319 Asks for that in junction Bloomberg's kdie lines visit kiting 0:09:00.440 --> 0:09:02.440 us from DC in New York. 0:09:02.480 --> 0:09:03.240 Thank you very much. 0:09:10.440 --> 0:09:12.840 There's plenty of innovation that we could point to and 0:09:12.840 --> 0:09:17.000 say there's an enormous opportunity to have like another industrial revolution, 0:09:17.080 --> 0:09:19.680 it just might be more of a digital revolution and 0:09:19.720 --> 0:09:22.079 a science revolution that could unleash a lot of productivity. 0:09:22.080 --> 0:09:24.000 But we need something to get more growth in the 0:09:24.040 --> 0:09:25.560 economy that will allow us to deal with some of 0:09:25.559 --> 0:09:26.520 the challenges we're going to finish. 0:09:26.600 --> 0:09:30.160 John Walden common Sach speaking earlier on look the artificial 0:09:30.200 --> 0:09:32.640 intelligence revolution that we keep discussing. He was talking about 0:09:32.640 --> 0:09:35.520 at a Bloomberg invest and it follows interesting comments yesterday 0:09:35.520 --> 0:09:38.800 from Stanley Druckenmiller, also at our Bloomberg Investor bent, who said, 0:09:39.200 --> 0:09:42.960 unlike crypto, AI is real. So what does that mean 0:09:42.960 --> 0:09:45.440 about crypto? We actually asked our audience you took to 0:09:45.520 --> 0:09:49.960 our poll yesterday, does AI have more staying power than crypto? 0:09:50.679 --> 0:09:53.160 I was amazed at kind of how neck and neck 0:09:53.160 --> 0:09:56.480 everything was staying power thirty nine thirty seven sent many 0:09:56.520 --> 0:09:59.160 will fail too early to tell, so it doesn't feel 0:09:59.160 --> 0:10:01.559 like artificial telli just as neeps and bounds ahead of 0:10:01.600 --> 0:10:04.920 crypto staying pier. Let's ask one Hannah Miller, who on 0:10:05.040 --> 0:10:07.040 visa say is also visiting New York because you've got 0:10:07.080 --> 0:10:10.720 a great new podcast on the downfall of FTX. Meanwhile, 0:10:10.800 --> 0:10:14.559 though the downfall of crypto, I mean, is crypto showing resilience? 0:10:14.600 --> 0:10:16.960 I mean, it's interesting that Bitcoin actually hasn't been marred 0:10:17.040 --> 0:10:19.160 too much in some of the pushback from an SEC 0:10:19.320 --> 0:10:20.240 level Yeah. 0:10:20.080 --> 0:10:23.040 We've seen some resilience here, and there are obviously founders 0:10:23.040 --> 0:10:26.480 in vcs who are still very confident in crypto. We 0:10:26.640 --> 0:10:29.720 have seen this shift though, where some crypto founders and 0:10:29.760 --> 0:10:33.280 even some crypto vcs are diving more into the intersection 0:10:33.400 --> 0:10:34.880 between crypto and AI. 0:10:35.080 --> 0:10:36.520 So that's been really exciting to track. 0:10:36.600 --> 0:10:38.680 Okay, course they are, and I remember that sort of 0:10:38.880 --> 0:10:41.840 meme that everyone's suddenly an AI expert now and leaving crypto. 0:10:41.920 --> 0:10:44.680 But what is the intersection? Where are we seeing value 0:10:44.679 --> 0:10:46.320 being created? People getting excited? 0:10:46.760 --> 0:10:49.439 Yeah, So people see a lot of promise in using 0:10:49.480 --> 0:10:54.040 blockchain for identity. So there's a startup called Tools for Humanity, 0:10:54.080 --> 0:10:57.040 which was co founded by Sam Altman. They developed world Coin, 0:10:57.120 --> 0:11:00.240 which they say will provide proof of personhood that you 0:11:00.280 --> 0:11:02.960 can use this black team based identity to show that 0:11:03.000 --> 0:11:06.120 you are indeed human. So that's been very interesting. They 0:11:06.120 --> 0:11:08.959 also scan your eyeballs in order to create this identity. 0:11:09.040 --> 0:11:11.800 So a lot of mixed concerns about that. Actually was 0:11:11.800 --> 0:11:13.959 an n A sixteen zite event in New York and 0:11:14.080 --> 0:11:16.160 sool someone with the helmet on from world coin. 0:11:16.600 --> 0:11:19.560 Yeah, there are our concerns about the sensitivity of this 0:11:19.640 --> 0:11:20.520 biometric data. 0:11:20.679 --> 0:11:22.280 Is it safe? Is it being protected? 0:11:22.679 --> 0:11:24.800 So you know, I think we do see some of 0:11:24.840 --> 0:11:29.240 the ethical concerns within AI bleeding over into the intersection 0:11:29.280 --> 0:11:30.800 between AI and crypto. 0:11:30.960 --> 0:11:33.840 But for now both still being eyed up by vcs. 0:11:33.880 --> 0:11:36.560 Hannah Miller is across it all and that intersection. But 0:11:36.640 --> 0:11:38.240 let's just pivot back a little bit more to the 0:11:38.240 --> 0:11:40.440 world of crypto because it has been done the pressure, 0:11:40.480 --> 0:11:42.040 certainly from a regulatory perspective. 0:11:42.440 --> 0:11:44.959 Yeah, I actually am envious of Hannah Miller because that's 0:11:45.000 --> 0:11:47.439 a great beat to have because everyone that was pummeling 0:11:47.480 --> 0:11:51.160 money into that space is just pivoted. So we are 0:11:51.200 --> 0:11:54.920 reporting good guests to talk about that with Chris Lahane Hahn, 0:11:55.040 --> 0:11:59.320 Venture's chief strategy officer, but also a member of coinbases 0:11:59.320 --> 0:12:00.640 Global Advice Recouncil. 0:12:00.720 --> 0:12:01.520 So let's start there. 0:12:01.559 --> 0:12:04.400 Actually, it is the story of the week, the sec 0:12:04.520 --> 0:12:10.520 suing coinbase, alleging securities breaches. What does your role entail 0:12:10.640 --> 0:12:12.760 as an advisory member to the global boards? 0:12:12.800 --> 0:12:15.679 So thanks for having me as always, so coinbase has 0:12:15.720 --> 0:12:16.880 stood up and announced and. 0:12:17.240 --> 0:12:18.480 Global advisory board. 0:12:18.480 --> 0:12:23.000 It's bipartisan, has Democrats and Republicans, it's global. You know, 0:12:23.120 --> 0:12:25.480 my specific roles, I have a bit of a background 0:12:26.440 --> 0:12:30.680 of having worked with disruptive, innovative companies trying to work 0:12:30.760 --> 0:12:34.679 within the system in a responsible way to bring regulatory 0:12:34.720 --> 0:12:36.000 certainty and clarity. 0:12:36.040 --> 0:12:37.840 People also call you a political operator. 0:12:38.000 --> 0:12:40.679 Well, that's another way of maybe putting it, But politics 0:12:40.760 --> 0:12:44.120 is always part of that, you know, ultimately, you know, 0:12:44.160 --> 0:12:47.440 we live in a democracy, small d democracy. Politics does 0:12:47.640 --> 0:12:51.480 ultimately impact as it should and inform policy, which ultimately 0:12:51.520 --> 0:12:55.120 brings regulatory certainty. And so a lot of what I've 0:12:55.160 --> 0:12:57.240 done over my career, I've been in government, I've run 0:12:57.400 --> 0:13:01.760 major campaigns, and I've certainly advised really innovative companies that 0:13:01.800 --> 0:13:04.440 are disrupting their status quo, but how can they do 0:13:04.440 --> 0:13:07.319 that in a really responsible way? And I think Coinbase 0:13:07.800 --> 0:13:11.040 in the crypto space has been really that leading platform 0:13:11.440 --> 0:13:13.920 seeking to do it in a responsible way, US based 0:13:14.440 --> 0:13:18.400 going through the processes, working with regulators. It's disruptive, it's 0:13:18.400 --> 0:13:20.959 trying to update the financial system. That's a big deal, 0:13:21.200 --> 0:13:23.240 but it's trying to really do it in a responsible way. 0:13:23.800 --> 0:13:26.600 Brian Armstrong twenty four hours ago, was asked about the 0:13:26.640 --> 0:13:30.640 timing of the SEC filing suits against both Coinbase and 0:13:30.760 --> 0:13:34.280 Finance in the matter of forty eight hours The word 0:13:34.320 --> 0:13:38.320 he used was conflate or confuse. What's your reaction to 0:13:38.360 --> 0:13:40.079 the timing of those two actions. 0:13:40.080 --> 0:13:41.679 So I grew up in Maine, and we used to 0:13:41.760 --> 0:13:43.280 have a saying when you go to bed at night 0:13:43.320 --> 0:13:45.640 and there's no snow on the ground, and you wake 0:13:45.679 --> 0:13:47.680 up in the morning there's snow, you can pretty safely 0:13:47.679 --> 0:13:50.000 conclude it has snowed over the course of the evening. 0:13:50.559 --> 0:13:53.319 This is a sort of policy version of that. 0:13:53.400 --> 0:13:56.440 I think members of Congress, both Democrats and Republicans, have 0:13:56.559 --> 0:13:59.600 expressed concern about the timing of this. And I'll say 0:13:59.600 --> 0:14:02.880 this as someone who has been in government historically in 0:14:02.880 --> 0:14:08.160 this country, our regulators that oversee financial sectors have been 0:14:08.240 --> 0:14:11.920 understood and really by design to be fair arbiterras, to 0:14:11.960 --> 0:14:15.400 be umpires, to call balls and strikes. And I do 0:14:15.440 --> 0:14:17.640 think if you look at how this played out this week, 0:14:17.640 --> 0:14:21.080 taking something as apples and something that's oranges, conflating them 0:14:21.120 --> 0:14:23.960 and putting them together, and doing it right before there's 0:14:23.960 --> 0:14:27.240 a major congressional hearing to actually begin the process of 0:14:27.280 --> 0:14:30.280 bringing clarity to this space, I do think that raises 0:14:30.320 --> 0:14:34.400 some serious, profound questions, like our system works because there 0:14:34.480 --> 0:14:36.080 is a rule of law part of that rule of 0:14:36.160 --> 0:14:39.000 law is those umpires calling those walls and strikes fairly, 0:14:39.600 --> 0:14:41.840 I think in this process and real serious questions have 0:14:41.840 --> 0:14:42.280 been raised. 0:14:42.400 --> 0:14:44.640 Okay, so rules yep. 0:14:44.840 --> 0:14:47.720 I remember two years ago when coin based file to 0:14:47.760 --> 0:14:50.360 go public, it wrote in no uncertain terms there is 0:14:50.400 --> 0:14:53.920 a high degree of uncertainty regarding the legality of operations. 0:14:53.960 --> 0:14:57.720 It wrote, regulators may disagree with the company's view, it 0:14:57.760 --> 0:14:58.680 isn't covered. 0:14:58.360 --> 0:14:59.240 By their rules. 0:15:00.080 --> 0:15:02.720 Armstrong's welcoming the opportunity to go to cool and use 0:15:02.760 --> 0:15:06.560 that tossess precedent. Is that a good idea, a good 0:15:06.600 --> 0:15:07.760 way of resolving this. 0:15:08.160 --> 0:15:09.680 You know, ultimately you're going to have to break the 0:15:09.720 --> 0:15:11.440 eggs a little bit to make the omelet on this. 0:15:11.520 --> 0:15:13.400 I think as part of this process and part of 0:15:13.440 --> 0:15:16.240 the journey, and so I do think one way or 0:15:16.280 --> 0:15:19.280 the other, either through the legal process or through legislation, 0:15:19.840 --> 0:15:20.680 you are going to get. 0:15:20.520 --> 0:15:22.360 Clarity into which is better to look. 0:15:22.640 --> 0:15:24.760 In my view as someone who comes out of politics 0:15:24.800 --> 0:15:27.520 and policy, Like the countries, you have a first principles approach, 0:15:27.880 --> 0:15:29.960 right there should be a strategic approach to how you 0:15:30.000 --> 0:15:32.160 want to deal with this industry. The rest of the 0:15:32.200 --> 0:15:34.840 world is actually moving forward really fast. 0:15:34.880 --> 0:15:36.040 To put frameworks in place. 0:15:36.080 --> 0:15:39.600 They specifically want to be crypto hubs because they understand 0:15:39.600 --> 0:15:40.760 that this is going to be a big part of 0:15:40.800 --> 0:15:42.120 the financial rails. 0:15:42.120 --> 0:15:42.800 Of the future. 0:15:42.960 --> 0:15:45.720 If you default to a legal process, companies like coinbase 0:15:45.720 --> 0:15:48.360 will certainly get their clarity. Remember this involves twelve tokens 0:15:48.360 --> 0:15:50.800 out of more than two hundred that the platform has 0:15:50.840 --> 0:15:51.760 on its exchange. 0:15:51.760 --> 0:15:53.120 But you'll get the clarity through that. 0:15:53.400 --> 0:15:55.960 I think it's far better from a US perspective, from 0:15:55.960 --> 0:15:59.960 an economic competitive perspective, from a national security. 0:16:00.240 --> 0:16:02.880 Of if you're actually doing this with a real strategy. 0:16:02.920 --> 0:16:05.040 Look, I was involved in the nineteen ninety six TAELC 0:16:05.200 --> 0:16:07.840 Act that began with a really whole. 0:16:07.640 --> 0:16:08.960 Set of complex ideas. 0:16:09.200 --> 0:16:11.280 President Bill Clinton took a big step back and said, hey, 0:16:11.320 --> 0:16:14.640 look at let's have a first principle's approach. I want 0:16:14.760 --> 0:16:17.160 tech to be based in the United States. That's what 0:16:17.280 --> 0:16:19.960 I want, and he put forth legislation and they've done 0:16:20.000 --> 0:16:21.080 in a bipartisan way. 0:16:21.440 --> 0:16:24.000 You flash forward to where we are today. The US has. 0:16:23.920 --> 0:16:27.400 Emerged as the center of the global economy because we 0:16:27.440 --> 0:16:28.480 are the center of tech. 0:16:28.560 --> 0:16:33.200 Well, paradoxically, emphasis on the word global in your advisory type. 0:16:33.520 --> 0:16:37.400 So how does coinbase grow itself outside of the jurisdiction 0:16:37.440 --> 0:16:39.200 of the United States, to your mind, I mean, what 0:16:39.200 --> 0:16:40.720 are you advising them to do well. 0:16:40.720 --> 0:16:42.880 I think they've been doing a great job of diversifying 0:16:42.880 --> 0:16:46.280 where they are geographically as well as their products and services. No, 0:16:46.440 --> 0:16:48.160 Brian has done a little bit of a world toward 0:16:48.160 --> 0:16:51.200 Brian Armstrong, the CEO, over the last couple of months, 0:16:51.480 --> 0:16:55.320 was in London, has been in Dubai, Companiess been in Brazil. 0:16:55.520 --> 0:16:58.640 These are all places that are actually putting frameworks in place. 0:16:58.680 --> 0:17:01.480 I mean, the UK has an announcement today about the 0:17:01.560 --> 0:17:04.880 next steps in its process. The PM has made clear 0:17:04.960 --> 0:17:07.280 Prime Minister sou Neck has made clear he wants London 0:17:07.640 --> 0:17:10.080 to be a hub. You think of the historic rails 0:17:10.080 --> 0:17:13.760 that have existed in London historically, going back several hundred years. 0:17:13.960 --> 0:17:16.960 One of the first central banks was developed in London, 0:17:17.200 --> 0:17:20.000 the Bank of England, and you think of the Commonwealth 0:17:20.040 --> 0:17:22.840 and the role that that crypto could play in actually 0:17:23.240 --> 0:17:27.040 advancing that system. Like I think Sunek actually sees enormous 0:17:27.080 --> 0:17:28.040 opportunity here and. 0:17:28.000 --> 0:17:30.080 Has talked about it. But that's not the only place. 0:17:30.160 --> 0:17:33.679 Japan this week actually moved forward with specific regulations and 0:17:33.760 --> 0:17:36.560 activity and again, so you see what is happening. There 0:17:36.600 --> 0:17:39.720 was a recent report from Electric Capital, another venture firm 0:17:39.760 --> 0:17:42.400 here in the valley, and they indicated that the US 0:17:42.480 --> 0:17:46.600 is losing market share of crypto developers. A million jobs, 0:17:46.640 --> 0:17:48.840 high quality engineering jobs on the table in the next 0:17:48.880 --> 0:17:50.840 five or six years. Are they going to take place 0:17:50.880 --> 0:17:52.760 here or we're gonna send that offshore? 0:17:53.000 --> 0:17:54.600 And look, just this week it was. 0:17:54.560 --> 0:17:58.359 An interesting week for US at Han we announced a 0:17:58.359 --> 0:18:00.920 project or a project that we're invested. It was announced 0:18:01.520 --> 0:18:03.920 it's called Argus Labs, just the first sort of computer 0:18:04.040 --> 0:18:08.600 gaming club platform bailt on top of blockchain. The founder 0:18:08.600 --> 0:18:11.000 of this is a young twenty year old came from 0:18:11.040 --> 0:18:14.000 Indonesia to age of sixteen to the University of California 0:18:14.040 --> 0:18:17.800 computer science program, graduated really early. Like he is literally 0:18:17.840 --> 0:18:20.040 the first round pick that you want if you're a kind. 0:18:19.880 --> 0:18:21.160 Of where is he in one word? 0:18:21.160 --> 0:18:24.000 And he's here in the United States building this project, 0:18:24.119 --> 0:18:25.960 right and he should be. This is we want to 0:18:25.960 --> 0:18:28.760 attract these jobs and these entrepreneurs. 0:18:28.200 --> 0:18:30.440 All right, Chris Lahane of Hahn Bench, is never enough 0:18:30.480 --> 0:18:32.000 time with you, Thank you. 0:18:32.480 --> 0:18:33.800 This is Bloomberg. 0:18:41.720 --> 0:18:44.280 Time now for talking tech. First up, want to make 0:18:44.440 --> 0:18:46.800 use of your car when you're not using it yourself. Well, look, 0:18:46.880 --> 0:18:49.280 Uber has plans for that. The right haling giant will 0:18:49.359 --> 0:18:51.800 launch Uber car Share. It's a peer to peer service 0:18:52.040 --> 0:18:54.600 that it says we'll make its business more sustainable, competing 0:18:54.600 --> 0:18:57.560 with startups like get Around in Turo. Meanwhile, the company 0:18:57.560 --> 0:19:00.920 wants to cut of missions to zero by converting its 0:19:01.080 --> 0:19:04.040 entire fleet of cars to electric by twenty forty. 0:19:05.400 --> 0:19:09.120 Tesla's are the highest selling cars in terms of electric 0:19:09.600 --> 0:19:13.160 vehicles by mile. At the same time, we're not you know, 0:19:13.320 --> 0:19:17.240 we want electrification to happen, and that's not just going 0:19:17.240 --> 0:19:20.120