WEBVTT - Single Best Idea with Tom Keene: Gary Gensler

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news, single best idea. Gary

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<v Speaker 1>Gensler really something on Wall Street. Just terrific, terrific career,

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<v Speaker 1>mostly Goldbyn Sachs, coming out of the University of Pennsylvania,

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<v Speaker 1>and then he decided to do public service. It's culminating

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<v Speaker 1>as Chairman of Securities Exchange Commission. He's now at the

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<v Speaker 1>Massachusetts Institute of Technology, working with the recent Nobel laureate

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<v Speaker 1>Simon Johnson. They have a new effort out that I'll

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<v Speaker 1>get out on LinkedIn and Twitter here as I can.

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<v Speaker 1>But Gary Goensler talking about the abrupt shift to the

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<v Speaker 1>Trump SEC from the Biden SEC. Gary Goensler on the

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<v Speaker 1>modern technologies, the shadows out there. We talked about private

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<v Speaker 1>credit and valuation there, but far more. Gary Gensler on

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<v Speaker 1>stable coin.

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<v Speaker 2>Stable coins. Tether was invented early on about ten eleven

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<v Speaker 2>years ago to be the equivalent of the poker chip

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<v Speaker 2>at the casino. You could use it to move crypto

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<v Speaker 2>versus crypto because these large exchanges couldn't get bank accounts,

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<v Speaker 2>and so instead you could sidestep any money lawn during

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<v Speaker 2>in sanctions. At a quarter of a trillion dollars, it's

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<v Speaker 2>starting to be somewhat meaningful. And here's the cool question,

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<v Speaker 2>the interesting economic question. Who gets the interest payments, Who

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<v Speaker 2>gets the float the three and a half or four

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<v Speaker 2>percent on on you know, for every billion dollars, that's

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<v Speaker 2>thirty five or forty million dollars of interest, and who

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<v Speaker 2>gets that interest. I'd rather have a money market fund

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<v Speaker 2>where I get the interest the investor.

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<v Speaker 1>Gary Gonsler diplomatic there I would say about stable coin.

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<v Speaker 1>I really want to emphasize this is heated battle right now.

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<v Speaker 1>All the other distractions that we have. The Bank of

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<v Speaker 1>International Settlements I think has done absolutely brilliant work. I'll

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<v Speaker 1>cite the leadership of Raphael our au Er and BIS

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<v Speaker 1>and Geneva. Just in the last number of days they

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<v Speaker 1>have put out a blistering research paper on stable coin.

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<v Speaker 1>And as with ken Rogoff, my book of the Summer

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<v Speaker 1>Our Dollar Year Problem, three chapters from Kenneth Rogoff of

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<v Speaker 1>Harvard on stable coin, and this all circles back to

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<v Speaker 1>avoiding the regular system that we all live in for

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<v Speaker 1>criminal activity, and it'll be fascinating to see how that

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<v Speaker 1>works out. We continue with mister Gensler on well, the

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<v Speaker 1>thing we're all living with I used AI to get

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<v Speaker 1>ready for this interview. Gary Gensler on artificial intelligence.

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<v Speaker 2>I would say this, it's one, it's been around at

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<v Speaker 2>least ten years, even longer, so it's not just new

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<v Speaker 2>with open AI and chat ch two. It's the most

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<v Speaker 2>transformative technology of the time. And I find myself thinking

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<v Speaker 2>I'm more of the optimist. I think there'll be a

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<v Speaker 2>lot of new productivity that comes from this, but also

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<v Speaker 2>a lot of changes in the job market. Bloomberg will

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<v Speaker 2>be different, Bloomberg Radio maybe not so different all right

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<v Speaker 2>at least, but I think it will be very different.

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<v Speaker 2>And so I think the US versus China is an

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<v Speaker 2>interesting thing. The big hyperscalers, the big you know, Chap,

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<v Speaker 2>GBT and Gemini and so forth. Those companies are competing

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<v Speaker 2>with China, and China's got well they have deep seek,

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<v Speaker 2>but they have something else. They have one point four

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<v Speaker 2>billion people, so they have data advantages over We're big,

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<v Speaker 2>but we're only three hundred and forty million people.

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<v Speaker 1>Gary Gonsler. We'll try to get that entire interview out

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<v Speaker 1>on some form of Bloomberg digital platform. If you're in

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<v Speaker 1>the heat wave, please stay cool out there. It can

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<v Speaker 1>be dangerous we're on our podcast of course on YouTube podcasts.

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<v Speaker 1>This is single best I get