1 00:00:01,639 --> 00:00:06,160 Speaker 1: Now from our nation's capital. This is Bloomberg Sound on 2 00:00:06,920 --> 00:00:10,160 Speaker 1: Cinema is hoping that she can cobble together those among 3 00:00:10,240 --> 00:00:13,520 Speaker 1: the Democrats who do supporter publicans and Congress have decided 4 00:00:13,520 --> 00:00:16,840 Speaker 1: that they'd rather fight against the health and well being 5 00:00:16,880 --> 00:00:20,920 Speaker 1: of our chops. Bloomberg Sound on Politics, Policy and perspective 6 00:00:21,040 --> 00:00:23,880 Speaker 1: from DC's top names. You know, there's a lot of 7 00:00:23,840 --> 00:00:26,800 Speaker 1: speculation as she trying to avoid a Democratic primary. We 8 00:00:26,800 --> 00:00:28,360 Speaker 1: don't know if Cheminic Cards is actually gonna be able 9 00:00:28,400 --> 00:00:30,480 Speaker 1: to pull this off. You know, the creative train that's 10 00:00:30,520 --> 00:00:32,120 Speaker 1: pulled in the circuits is to put up the tent, 11 00:00:32,400 --> 00:00:34,199 Speaker 1: and now the clowns are running around inside and they're 12 00:00:34,240 --> 00:00:38,519 Speaker 1: still not organized. Bloomberg found on with Joe Matthew on 13 00:00:38,720 --> 00:00:43,800 Speaker 1: Bloomberg Radio tomorrow. It is a showdown that we've been 14 00:00:43,840 --> 00:00:46,720 Speaker 1: waiting for. Sam Bateman, free, the founder of st X, 15 00:00:46,800 --> 00:00:49,640 Speaker 1: faces members of Congress who are grappling with how to 16 00:00:49,760 --> 00:00:53,360 Speaker 1: address crypto because, as we know, navigating the nuances of 17 00:00:53,400 --> 00:00:57,360 Speaker 1: technology is not always Congress is strongest suit. We're also 18 00:00:57,400 --> 00:01:00,440 Speaker 1: the breakdown what you can expect to hear tomorrow. And 19 00:01:00,560 --> 00:01:03,400 Speaker 1: it's that time of year again, not just Christmas, but 20 00:01:03,440 --> 00:01:07,200 Speaker 1: also potential government shutdown season, Lawmakers are scrambling to put 21 00:01:07,240 --> 00:01:10,440 Speaker 1: together legislation to fund the government, with a current deadline 22 00:01:10,600 --> 00:01:14,760 Speaker 1: of this Friday. This is Emily Wilkins filling in today 23 00:01:14,920 --> 00:01:18,319 Speaker 1: for Joe Matthew and we've got some great guests coming up. 24 00:01:18,720 --> 00:01:22,440 Speaker 1: Well excited to welcome now onto the show. Terry Haynes. 25 00:01:22,520 --> 00:01:25,640 Speaker 1: He is the founder of Pangea Policy, and he had 26 00:01:25,680 --> 00:01:28,880 Speaker 1: a really interesting memo out today about how the fate 27 00:01:28,920 --> 00:01:31,919 Speaker 1: of crypto is going to rest in Congress his hands. 28 00:01:31,920 --> 00:01:35,440 Speaker 1: With tomorrow's hearing on FTX where Sam Bankman Freed is 29 00:01:35,480 --> 00:01:39,160 Speaker 1: expected to testify before lawmakers. And Terry, you were at 30 00:01:39,160 --> 00:01:42,679 Speaker 1: one time the head staffer of the House Financial Services Committee. 31 00:01:42,880 --> 00:01:45,600 Speaker 1: You know this committee? You know, Congress. What are you 32 00:01:45,640 --> 00:01:49,360 Speaker 1: going to be watching during the hearing tomorrow? Hi, Emily, 33 00:01:49,360 --> 00:01:53,640 Speaker 1: good evening. Um, Well, fundamentally I'm gonna be watching, uh 34 00:01:53,800 --> 00:01:57,800 Speaker 1: to see if they're serious or not. And I don't 35 00:01:57,800 --> 00:02:00,680 Speaker 1: mean to suggest members are are fundamentally on serious. What 36 00:02:00,760 --> 00:02:03,560 Speaker 1: I do mean to suggest is if you're doing oversights 37 00:02:03,560 --> 00:02:07,760 Speaker 1: and investigations that might turn into legislation, UH, you have 38 00:02:07,840 --> 00:02:11,000 Speaker 1: to be very focused about it. And you know, so 39 00:02:11,080 --> 00:02:15,120 Speaker 1: I put together the note which you kindly reference a 40 00:02:15,160 --> 00:02:18,959 Speaker 1: bunch of tells so that markets could figure out whether 41 00:02:19,080 --> 00:02:22,280 Speaker 1: or not the things we're gonna go well, uh, you know, 42 00:02:22,680 --> 00:02:24,919 Speaker 1: basic things, Whether they have a game plan where they're 43 00:02:24,960 --> 00:02:27,520 Speaker 1: sticking to it so far. I think they are, because 44 00:02:27,960 --> 00:02:32,160 Speaker 1: they're only witnesses. Are not just uh the famous SPF, 45 00:02:32,200 --> 00:02:35,560 Speaker 1: but John Ray, who's the new CEO of f t X. 46 00:02:35,639 --> 00:02:38,280 Speaker 1: He goes first, so he's gonna set the table. But 47 00:02:38,320 --> 00:02:40,919 Speaker 1: the committee is gonna have to keep focused. Uh. They're 48 00:02:40,919 --> 00:02:42,840 Speaker 1: gonna have to make sure that a lot of the 49 00:02:42,840 --> 00:02:47,760 Speaker 1: things that uh Sam Bankman Freed said uh to publicly 50 00:02:47,800 --> 00:02:51,520 Speaker 1: to journalists and others. Uh. Uh, they get affirmed under 51 00:02:51,520 --> 00:02:55,240 Speaker 1: oath because not just for their own investigations, but because 52 00:02:55,280 --> 00:02:58,960 Speaker 1: that's gonna help federal prosecutors and regulators. UM. I'd stay 53 00:02:58,960 --> 00:03:02,639 Speaker 1: away right now from public policy, from from taking partisan 54 00:03:02,720 --> 00:03:05,720 Speaker 1: cheap shots. And uh and you know, if I were 55 00:03:05,760 --> 00:03:08,840 Speaker 1: Patrick McHenry, who's very likely going to be the next 56 00:03:08,840 --> 00:03:12,600 Speaker 1: head of the Financial Services Committee, UM, i'd be talking 57 00:03:12,720 --> 00:03:17,280 Speaker 1: about in an initial uh kind of rollout of you know, 58 00:03:17,360 --> 00:03:21,800 Speaker 1: where where he thinks the committee should go. But fundamentally, uh, 59 00:03:21,919 --> 00:03:24,079 Speaker 1: they need to keep this bipartisan. But they need to 60 00:03:24,160 --> 00:03:27,040 Speaker 1: keep it focused, and if they don't, it's going to 61 00:03:27,120 --> 00:03:29,600 Speaker 1: be deadly and uh and it's I mean, it's gonna 62 00:03:29,600 --> 00:03:33,440 Speaker 1: be deadly slow, it's gonna be uh, not particularly useful 63 00:03:33,480 --> 00:03:37,320 Speaker 1: to anybody, and it might well signal that the Congress 64 00:03:37,360 --> 00:03:40,640 Speaker 1: isn't up to this. So it's an important day all around. Yeah, Terry, 65 00:03:40,680 --> 00:03:43,160 Speaker 1: I've said in a number of these hearings before, I 66 00:03:43,200 --> 00:03:45,440 Speaker 1: know you have as well, with the exception of of 67 00:03:45,480 --> 00:03:49,000 Speaker 1: maybe the more recent January six committees. Usually this is 68 00:03:49,000 --> 00:03:51,920 Speaker 1: not prime time television. The questions tend to be all 69 00:03:51,920 --> 00:03:54,880 Speaker 1: over the place. Lawmakers tend to go for that golden 70 00:03:54,960 --> 00:03:58,840 Speaker 1: thirty second gotcha clip. Can we expect to see some 71 00:03:58,920 --> 00:04:02,640 Speaker 1: of that tomorrow? Or is this an issue where because 72 00:04:02,720 --> 00:04:05,400 Speaker 1: Congress is a little bit newer to the table on it, 73 00:04:05,720 --> 00:04:09,200 Speaker 1: we're seeing less of that partisan breakdown when it comes 74 00:04:09,240 --> 00:04:13,240 Speaker 1: to how different lawmakers and how different parties are viewing 75 00:04:13,400 --> 00:04:17,360 Speaker 1: this issue. I think, you know, I think basically it depends. 76 00:04:17,480 --> 00:04:22,480 Speaker 1: It depends on whether both sides, uh um Mrs Waters 77 00:04:22,560 --> 00:04:26,599 Speaker 1: for the Democrats. Mr. McHenry for the Republicans, I think 78 00:04:26,600 --> 00:04:29,719 Speaker 1: talk to their members and urge them. They can't dictate 79 00:04:29,800 --> 00:04:32,360 Speaker 1: to them, but urge them to say, look, you know, 80 00:04:32,680 --> 00:04:35,279 Speaker 1: let's keep this focus. We've got two witnesses, Let's get 81 00:04:35,279 --> 00:04:37,880 Speaker 1: all the information we can out of this. Let's lay 82 00:04:37,880 --> 00:04:40,720 Speaker 1: a really good groundwork. Um. If they you know, if 83 00:04:40,760 --> 00:04:43,440 Speaker 1: they do that and the members listen to them, uh, 84 00:04:43,480 --> 00:04:45,839 Speaker 1: they're gonna have a good hearing. But on the other hand, 85 00:04:45,880 --> 00:04:47,920 Speaker 1: as you point out, you know, if you're gonna have 86 00:04:47,960 --> 00:04:50,200 Speaker 1: another one of these sorts of hearings where fifty four 87 00:04:50,240 --> 00:04:52,560 Speaker 1: members and that's how many members of this committee, there are, 88 00:04:53,040 --> 00:04:55,640 Speaker 1: fifty four members are going to take their five minutes 89 00:04:55,640 --> 00:04:58,839 Speaker 1: and essentially speech of five from the from the dais Uh, 90 00:04:58,920 --> 00:05:02,200 Speaker 1: it's gonna be a long a but more fundamentally, it's 91 00:05:02,200 --> 00:05:05,440 Speaker 1: not going to get anywhere. And one thing I point 92 00:05:05,440 --> 00:05:08,120 Speaker 1: out and the note is really Congress is the only 93 00:05:08,240 --> 00:05:10,880 Speaker 1: entity here that can kind of grab all the reins 94 00:05:10,920 --> 00:05:17,040 Speaker 1: together and and come up with not just investigations about Bankman, 95 00:05:17,080 --> 00:05:20,520 Speaker 1: Freed and ft X, but also Crypto and then also 96 00:05:20,600 --> 00:05:23,719 Speaker 1: pivot into trying to figure out, you know, how to 97 00:05:23,760 --> 00:05:27,160 Speaker 1: agree on legislation and you know what the public policy 98 00:05:27,200 --> 00:05:30,120 Speaker 1: issues are. They haven't really started any of that stuff yet, 99 00:05:30,839 --> 00:05:33,760 Speaker 1: but but they're gonna have to. And uh so this 100 00:05:33,800 --> 00:05:36,160 Speaker 1: is a very important moment for this and certainly it's 101 00:05:36,160 --> 00:05:38,080 Speaker 1: going to be a big day tomorrow. A Bloomberg is 102 00:05:38,120 --> 00:05:40,880 Speaker 1: going to be covering this hearing very closely. But Terria, 103 00:05:41,080 --> 00:05:43,480 Speaker 1: I also want to take a larger look at what 104 00:05:43,520 --> 00:05:46,359 Speaker 1: Congress needs to do this week, next week, for the 105 00:05:46,400 --> 00:05:49,200 Speaker 1: rest of this lean duck session that we're in. Obviously, 106 00:05:49,279 --> 00:05:52,040 Speaker 1: number one thing, of course, is to keep the government funded. 107 00:05:52,120 --> 00:05:54,880 Speaker 1: The current short term bill that we have, it's going 108 00:05:54,920 --> 00:05:58,200 Speaker 1: to end on December sixte At this point read the 109 00:05:58,200 --> 00:06:00,720 Speaker 1: tea leaves for us. What's going to be happening? Are 110 00:06:00,720 --> 00:06:03,320 Speaker 1: we going to see some sort of comprehensive funding bill 111 00:06:03,640 --> 00:06:07,559 Speaker 1: that comes before Christmas? I think what's very likely to happen, 112 00:06:07,600 --> 00:06:11,200 Speaker 1: Emily is that, uh, we get we're operating on what 113 00:06:11,320 --> 00:06:14,360 Speaker 1: in Washington is known as a continuing resolution now temporary 114 00:06:14,360 --> 00:06:17,640 Speaker 1: funding at the last year's levels. UM that will continue 115 00:06:18,480 --> 00:06:23,080 Speaker 1: very likely for another week between December sixteen and three. Uh. 116 00:06:23,120 --> 00:06:26,600 Speaker 1: The idea is that uh they can they can finalize 117 00:06:26,640 --> 00:06:30,599 Speaker 1: spending bills by December and go home for Christmas. Uh. 118 00:06:30,680 --> 00:06:32,560 Speaker 1: You know, I gotta say right now, the situation is 119 00:06:32,640 --> 00:06:35,120 Speaker 1: very fluid. Right now, I see it's sort of forty 120 00:06:35,200 --> 00:06:37,480 Speaker 1: sixty that they get there. In other words, it's a 121 00:06:37,560 --> 00:06:41,880 Speaker 1: little less likely that that happens. Um. The big incentive 122 00:06:41,920 --> 00:06:45,760 Speaker 1: for them is that, uh, this is the last moments 123 00:06:45,920 --> 00:06:51,159 Speaker 1: of the current Congress's ability to reach these compromises. But 124 00:06:51,279 --> 00:06:55,200 Speaker 1: there's incentives for both sides, uh, frankly to h to 125 00:06:55,320 --> 00:06:58,279 Speaker 1: kick it over into the new year as well. UH. 126 00:06:58,520 --> 00:07:01,360 Speaker 1: So you know, I will, I won't call it impossible 127 00:07:01,400 --> 00:07:05,480 Speaker 1: by any means, But right now I don't see the uh, 128 00:07:05,640 --> 00:07:09,960 Speaker 1: I don't see the either side really wanting to uh 129 00:07:10,160 --> 00:07:13,040 Speaker 1: get things done quickly and go home. Last year, this 130 00:07:13,120 --> 00:07:15,720 Speaker 1: took almost six months to finalize, as I'm sure you 131 00:07:15,760 --> 00:07:19,240 Speaker 1: will know. And uh, and it may it may take 132 00:07:19,360 --> 00:07:22,560 Speaker 1: something like that going into the new year. Republicans like 133 00:07:22,640 --> 00:07:25,119 Speaker 1: to say that they have more incentives to do different things, 134 00:07:25,800 --> 00:07:29,160 Speaker 1: so do Democrats. So in a split Congress is likely 135 00:07:29,200 --> 00:07:31,600 Speaker 1: to take longer rather than shorter. I think. I mean, 136 00:07:31,640 --> 00:07:34,240 Speaker 1: if this does get knocked into next year, is that 137 00:07:34,320 --> 00:07:37,280 Speaker 1: going to drastically change what this bill looks like? Obviously 138 00:07:37,320 --> 00:07:40,680 Speaker 1: at that point then Republicans will have assumed control of 139 00:07:40,720 --> 00:07:43,160 Speaker 1: the House, but of course Democrats will still be in 140 00:07:43,160 --> 00:07:46,000 Speaker 1: control of the Senate. Biden will still be president, so 141 00:07:46,200 --> 00:07:49,040 Speaker 1: does the actual contents of what could be in a 142 00:07:49,160 --> 00:07:52,120 Speaker 1: final comprehensive bill change a lot if this does get 143 00:07:52,600 --> 00:07:57,200 Speaker 1: next year, Well, i've very smart question and the short answers. 144 00:07:57,240 --> 00:08:00,720 Speaker 1: I don't think it does change very much. But parties 145 00:08:00,800 --> 00:08:04,920 Speaker 1: have perfected the kind of kabuki art over the past 146 00:08:04,960 --> 00:08:09,040 Speaker 1: ten to fifteen years of uh, you know, looking like 147 00:08:09,160 --> 00:08:15,120 Speaker 1: they're looking like they're wrestling hugely over over issues. But 148 00:08:15,240 --> 00:08:17,560 Speaker 1: in fact what ends up happening at the end of 149 00:08:18,120 --> 00:08:20,320 Speaker 1: at the end of the year on spending bills is 150 00:08:20,360 --> 00:08:23,720 Speaker 1: that the the the basic federal spending changes very little. 151 00:08:24,320 --> 00:08:28,160 Speaker 1: Uh you know, one percent, two percent, Uh you know. 152 00:08:28,520 --> 00:08:31,600 Speaker 1: It is always Democrats will always say, you know, what 153 00:08:31,600 --> 00:08:34,679 Speaker 1: we're interested in is beefing up domestic programs as much 154 00:08:34,679 --> 00:08:39,760 Speaker 1: as possible, maybe even at the expensive defense. Republicans traditional 155 00:08:39,880 --> 00:08:41,920 Speaker 1: view has been, well, you know, we'd like to beef 156 00:08:41,960 --> 00:08:43,640 Speaker 1: up defense, and we don't. Don't you know, we're not 157 00:08:43,720 --> 00:08:47,960 Speaker 1: as interested in over funding they would call domestic programs. 158 00:08:48,440 --> 00:08:51,840 Speaker 1: I think that uneasy compromises reached. So I think that 159 00:08:51,920 --> 00:08:54,760 Speaker 1: happens again, and I think that's the current sticking point 160 00:08:54,880 --> 00:08:57,040 Speaker 1: right now. Really between the two of them are those 161 00:08:57,120 --> 00:09:00,600 Speaker 1: non defense spending levels exactly how much those programs are 162 00:09:00,760 --> 00:09:02,360 Speaker 1: going to get. I know there's also been some talk 163 00:09:02,640 --> 00:09:04,840 Speaker 1: about just doing a year long CR kind of that 164 00:09:04,840 --> 00:09:08,440 Speaker 1: that temporary continuing resolution, the one that we're operating under 165 00:09:08,559 --> 00:09:11,400 Speaker 1: right now. And I'm just wondering if you can sort 166 00:09:11,400 --> 00:09:13,800 Speaker 1: of because you'll you'll know this better than I do. 167 00:09:13,880 --> 00:09:15,840 Speaker 1: I know there's some major concerns if they just do 168 00:09:15,920 --> 00:09:18,520 Speaker 1: a year long CR. But what is that actually going 169 00:09:18,600 --> 00:09:22,520 Speaker 1: to mean for for the country, for the military. Well, 170 00:09:22,559 --> 00:09:26,559 Speaker 1: it's bad, it's bad for the military. Uh. The you 171 00:09:26,640 --> 00:09:31,920 Speaker 1: know we go through back in the day of the 172 00:09:32,080 --> 00:09:34,439 Speaker 1: Congress used to not only appropriate money, they used to 173 00:09:34,480 --> 00:09:37,160 Speaker 1: authorize it. In other words, they used to come up 174 00:09:37,200 --> 00:09:40,880 Speaker 1: with the substantive programs and agree on those. Uh. The 175 00:09:41,120 --> 00:09:43,960 Speaker 1: what's called the n DA, the National Defense Authorization Act, 176 00:09:44,040 --> 00:09:46,520 Speaker 1: is really the last major one of those that still exists. 177 00:09:46,520 --> 00:09:50,520 Speaker 1: But Congress takes it very seriously. What what what in 178 00:09:50,640 --> 00:09:52,800 Speaker 1: the AA will pass this week. But what it will 179 00:09:52,880 --> 00:09:54,880 Speaker 1: what it will mean is it will authorize money, but 180 00:09:54,960 --> 00:09:59,360 Speaker 1: not appropriate it. So Congress wants a an increase in 181 00:09:59,440 --> 00:10:04,640 Speaker 1: defense funding overall, more than the Biden administration would have wanted, 182 00:10:05,120 --> 00:10:08,440 Speaker 1: but that won't be funded in a year long CR. 183 00:10:08,600 --> 00:10:13,120 Speaker 1: So the the military is understandably, you know, not happy 184 00:10:13,160 --> 00:10:17,480 Speaker 1: about the prospect that a full year CR might happen. 185 00:10:18,040 --> 00:10:21,280 Speaker 1: And I think that is a major reason why, uh, 186 00:10:21,720 --> 00:10:27,280 Speaker 1: why Congress ends up ultimately compromising and uh passing full 187 00:10:27,360 --> 00:10:31,040 Speaker 1: year spending bills is simply that you know, existing programs 188 00:10:31,040 --> 00:10:33,280 Speaker 1: and military is a perfect example of this, but there 189 00:10:33,280 --> 00:10:37,120 Speaker 1: are many, many others. The funding decisions made for for 190 00:10:37,600 --> 00:10:40,280 Speaker 1: existing programs for the current fiscal year would never take 191 00:10:40,280 --> 00:10:42,880 Speaker 1: effect in a CR, and that's something that too many 192 00:10:42,920 --> 00:10:46,040 Speaker 1: members you know, wouldn't want to have happened. So, you know, 193 00:10:46,080 --> 00:10:49,160 Speaker 1: I think this happens in the end absolutely, And in addition, 194 00:10:49,160 --> 00:10:50,880 Speaker 1: of course, so it's funding the government. I mean, we 195 00:10:50,920 --> 00:10:52,840 Speaker 1: do have a few weeks left. We actually saw some 196 00:10:52,920 --> 00:10:56,560 Speaker 1: legislation move last week, but the House passing protections for 197 00:10:56,640 --> 00:11:00,120 Speaker 1: same sex marriage. Is there anything else terry that you 198 00:11:00,200 --> 00:11:02,920 Speaker 1: think might actually be able to get done before the 199 00:11:03,040 --> 00:11:06,480 Speaker 1: end of the year, Um, short answer is I think not. 200 00:11:06,960 --> 00:11:09,160 Speaker 1: There's a bunch of things that you know, different lobby 201 00:11:09,200 --> 00:11:13,600 Speaker 1: groups really we're pushing, different groups of members are really pushing, uh, 202 00:11:13,720 --> 00:11:16,079 Speaker 1: you know, so called Safe Banking Act on marijuana, a 203 00:11:16,120 --> 00:11:21,600 Speaker 1: bunch of other things. But the you know. Where members 204 00:11:21,600 --> 00:11:24,480 Speaker 1: are at this point is uh. And where they are 205 00:11:24,520 --> 00:11:27,240 Speaker 1: every year at this at this sort of point is 206 00:11:27,360 --> 00:11:31,440 Speaker 1: very simply UH saying to themselves. Look, if we put something, 207 00:11:32,120 --> 00:11:34,400 Speaker 1: you know, something in whether it's safe banking or something 208 00:11:34,440 --> 00:11:38,600 Speaker 1: else that um that is non germane to spending, does 209 00:11:38,640 --> 00:11:40,880 Speaker 1: that get me votes or does it cost me votes? 210 00:11:41,200 --> 00:11:43,160 Speaker 1: If it gets me votes, then we can talk about it. 211 00:11:43,200 --> 00:11:45,960 Speaker 1: If it costs me votes, if it's controversial for some reason, 212 00:11:46,320 --> 00:11:49,040 Speaker 1: then the answer almost certainly is no. It doubt but 213 00:11:49,520 --> 00:11:51,520 Speaker 1: you know, as you well know, members and senators don't 214 00:11:51,559 --> 00:11:54,240 Speaker 1: like to say no to each other very directly, so 215 00:11:54,559 --> 00:11:58,040 Speaker 1: that dance continues for quite a while. But in the end, 216 00:11:58,080 --> 00:11:59,960 Speaker 1: I think I think this is going to be fairly 217 00:12:00,080 --> 00:12:03,480 Speaker 1: tightly tightly written. Uh. You know. The big the big 218 00:12:03,480 --> 00:12:08,079 Speaker 1: exceptions here are Ukraine spending, in Taiwan spending and again, 219 00:12:08,160 --> 00:12:11,320 Speaker 1: both of which I think end up happening uh, but 220 00:12:11,600 --> 00:12:14,720 Speaker 1: maybe even on a cr But other than that, I 221 00:12:14,760 --> 00:12:17,320 Speaker 1: think most others who are pushing for things are going 222 00:12:17,360 --> 00:12:21,040 Speaker 1: to be disappointed. Absolutely well, Terry, thank you so much 223 00:12:21,040 --> 00:12:23,240 Speaker 1: for taking the time to coming on breaking down the 224 00:12:23,320 --> 00:12:26,160 Speaker 1: hearing tomorrow as well as what Congress needs to do 225 00:12:26,240 --> 00:12:29,000 Speaker 1: for the next couple of weeks. That was Terry Haynes, 226 00:12:29,240 --> 00:12:33,360 Speaker 1: founder of Pangaia Policy, also wanted to turn out to 227 00:12:33,480 --> 00:12:37,040 Speaker 1: our all star panel. Rick Davis and Genie she and Zano, 228 00:12:37,679 --> 00:12:40,520 Speaker 1: thank you guys both so much as always for for 229 00:12:40,600 --> 00:12:43,600 Speaker 1: being here and joining us and lending your insights. And 230 00:12:43,640 --> 00:12:45,319 Speaker 1: I kind of wanted to pick up a little bit 231 00:12:45,400 --> 00:12:50,000 Speaker 1: going back to the discussion about the budget, uh, about 232 00:12:50,040 --> 00:12:53,880 Speaker 1: passing funding for Congress. I mean, Terry just said, you 233 00:12:53,880 --> 00:12:56,360 Speaker 1: know that if the if we passed a bill this year, 234 00:12:56,400 --> 00:12:58,160 Speaker 1: it's not going to look very different from a bill 235 00:12:58,200 --> 00:13:00,160 Speaker 1: that might be passed next year. That it's a bit 236 00:13:00,200 --> 00:13:03,360 Speaker 1: of kabuki theater. And and Rick, I just sort of 237 00:13:03,400 --> 00:13:05,000 Speaker 1: want to come to you first because I know that 238 00:13:05,000 --> 00:13:08,080 Speaker 1: you've obviously had a past in the Senate. Why is 239 00:13:08,120 --> 00:13:11,680 Speaker 1: it that our process to fund the government has gotten 240 00:13:11,679 --> 00:13:14,760 Speaker 1: a sort of chaotic as it is where we're all, 241 00:13:14,800 --> 00:13:17,240 Speaker 1: you know, wondering when we can go home for Christmas 242 00:13:17,240 --> 00:13:19,719 Speaker 1: because we just don't know when legislation is going to 243 00:13:19,800 --> 00:13:24,000 Speaker 1: be passed. Yeah, gone to the days, Emily of seeing 244 00:13:24,320 --> 00:13:28,040 Speaker 1: Senate pass eight twelve appropriations bills during the course of 245 00:13:28,040 --> 00:13:31,040 Speaker 1: the year and get their you know, funding set before 246 00:13:31,080 --> 00:13:34,079 Speaker 1: the end of the fiscal year in September. But look, 247 00:13:34,120 --> 00:13:36,240 Speaker 1: I mean, you know, lots of times we do see 248 00:13:36,240 --> 00:13:38,760 Speaker 1: Congress act when their backs are up against the clock 249 00:13:39,320 --> 00:13:42,400 Speaker 1: and and the clock is ticking. They may blow through 250 00:13:42,440 --> 00:13:45,960 Speaker 1: this this one deadline they've got, but it's likely that 251 00:13:46,000 --> 00:13:48,240 Speaker 1: they will act. I would think, you know, before the 252 00:13:48,360 --> 00:13:51,920 Speaker 1: end of the Christmas holiday, before Christmas holiday. And I 253 00:13:51,920 --> 00:13:54,640 Speaker 1: would say primarily because I don't think Lahy and Shelby, 254 00:13:54,720 --> 00:13:59,240 Speaker 1: the two you know, senior ranking people on the Appropriations Committee, 255 00:13:59,240 --> 00:14:02,040 Speaker 1: want their last year in office to be marred by 256 00:14:02,200 --> 00:14:03,960 Speaker 1: not being able to get a budget pass and just 257 00:14:04,080 --> 00:14:07,320 Speaker 1: kicking the CR into next year. Uh. And and there 258 00:14:07,360 --> 00:14:11,160 Speaker 1: are so many important programs that are embedded in, especially 259 00:14:11,200 --> 00:14:14,199 Speaker 1: like military spending, that they want to see done. Uh. 260 00:14:14,240 --> 00:14:17,640 Speaker 1: The idea of a CR that just sort of sets 261 00:14:17,679 --> 00:14:22,080 Speaker 1: things in last year's spending levels is really grading on 262 00:14:22,120 --> 00:14:24,960 Speaker 1: a lot of people. So I do think there's energy 263 00:14:25,080 --> 00:14:27,520 Speaker 1: on the side of getting this done. Uh. And I 264 00:14:27,560 --> 00:14:30,400 Speaker 1: think legacy actually has something to do with it this 265 00:14:30,440 --> 00:14:33,760 Speaker 1: time around. Absolutely, And Jennie, I also wanted to ask 266 00:14:33,800 --> 00:14:37,200 Speaker 1: just about sort of what else Congress has on their agenda. Obviously, 267 00:14:37,320 --> 00:14:39,760 Speaker 1: this is the final weeks of Democrats getting to be 268 00:14:39,800 --> 00:14:42,120 Speaker 1: able to say they control the House and the Senate 269 00:14:42,160 --> 00:14:44,200 Speaker 1: and the White House, to lose control of the House 270 00:14:44,240 --> 00:14:47,600 Speaker 1: after this, and is there anything that's going to really 271 00:14:47,880 --> 00:14:50,720 Speaker 1: die with that? Things that they're pushing for now that 272 00:14:50,760 --> 00:14:52,840 Speaker 1: if they just can't get it done, there's no way 273 00:14:52,880 --> 00:14:56,480 Speaker 1: to accomplish once you have that divided government. Well, really 274 00:14:56,520 --> 00:15:00,200 Speaker 1: important things to Democrats, like the voting Rights Bill will 275 00:15:00,280 --> 00:15:03,040 Speaker 1: die in the new Congress. And that's something we saw 276 00:15:03,040 --> 00:15:05,320 Speaker 1: the Congressional Black Hawcus try to hold up the n 277 00:15:05,400 --> 00:15:07,880 Speaker 1: d A A a little bit. Um. They were not 278 00:15:07,960 --> 00:15:10,720 Speaker 1: successful in doing that in the House, but because they 279 00:15:10,800 --> 00:15:13,920 Speaker 1: realize that the train is leaving the station, quote unquote, 280 00:15:14,080 --> 00:15:17,160 Speaker 1: and if they don't get their wish list on that train, 281 00:15:17,520 --> 00:15:20,040 Speaker 1: so to speak, there's there's not much hope. And that's 282 00:15:20,080 --> 00:15:22,960 Speaker 1: really where we are at this point. So that's one 283 00:15:23,000 --> 00:15:25,800 Speaker 1: that's gonna die. I don't know if this one will die, 284 00:15:25,920 --> 00:15:28,400 Speaker 1: We don't know yet. But they really wanted to extend 285 00:15:28,400 --> 00:15:31,600 Speaker 1: the child tax credit. Um, we don't know if if 286 00:15:31,600 --> 00:15:33,120 Speaker 1: they're going to be able to do that. There's some 287 00:15:33,160 --> 00:15:35,440 Speaker 1: talk we may see that in the government funding bill, 288 00:15:35,480 --> 00:15:37,880 Speaker 1: but that's a stretch. So there are very important issues 289 00:15:37,920 --> 00:15:41,000 Speaker 1: like that to Democrats that we just likely won't see 290 00:15:41,040 --> 00:15:44,360 Speaker 1: the Electoral Count Act as another one. Um. So you know, 291 00:15:45,000 --> 00:15:47,760 Speaker 1: even though there's bipartisan support for some of these, pushing 292 00:15:47,800 --> 00:15:52,000 Speaker 1: them through is going to be pretty difficult at this point. Absolutely. 293 00:15:52,040 --> 00:15:53,920 Speaker 1: I mean, it's just the high bar that you need 294 00:15:53,960 --> 00:15:56,440 Speaker 1: to cross, knowing that even if you get in the House, 295 00:15:56,440 --> 00:15:59,000 Speaker 1: then you have to figure it out with the Senate. Uh. 296 00:15:59,040 --> 00:16:02,400 Speaker 1: Definitely a lot of chaos there. Um, Rick, I guess 297 00:16:02,440 --> 00:16:04,440 Speaker 1: I'll just ask you with with a few seconds that 298 00:16:04,520 --> 00:16:06,800 Speaker 1: we have left. I mean, is there anything particular that 299 00:16:06,840 --> 00:16:08,800 Speaker 1: you think we've looked at this year that we might 300 00:16:08,840 --> 00:16:13,160 Speaker 1: see next year? Sure? I think our friends on the 301 00:16:13,200 --> 00:16:15,440 Speaker 1: Safe Banking Act that you already talked about, that's a 302 00:16:15,520 --> 00:16:19,600 Speaker 1: perennial um measure that will come back. We all need 303 00:16:19,640 --> 00:16:23,840 Speaker 1: to be able to get access to banking for our marijuana, 304 00:16:23,960 --> 00:16:26,680 Speaker 1: So that one's going to happen, and Phil it doesn't, well, well, 305 00:16:26,720 --> 00:16:29,240 Speaker 1: could definitely be keeping an eye on that. Genie Schanzano, 306 00:16:29,440 --> 00:16:31,880 Speaker 1: Rick Davis, thank you so much. This is Sound On. 307 00:16:33,640 --> 00:16:40,320 Speaker 1: This is Bloomberg Sound On with Joe Matthew on Bloomberg Radio. 308 00:16:41,640 --> 00:16:45,840 Speaker 1: This is Emily Wilkins filling in today for Joe Matthew. Well, 309 00:16:45,960 --> 00:16:48,960 Speaker 1: we had a very big week in Congress last week. 310 00:16:49,360 --> 00:16:54,160 Speaker 1: The top news, of course, Arizona Senator Kirsten Sema announcing 311 00:16:54,240 --> 00:16:57,040 Speaker 1: that she would be leaving the Democratic Party no longer 312 00:16:57,080 --> 00:16:58,720 Speaker 1: has that D next to her name, going to be 313 00:16:58,800 --> 00:17:02,120 Speaker 1: an independent. Uh, and she's not a couple of different 314 00:17:02,120 --> 00:17:04,760 Speaker 1: details coming out of that. She's not going to caucus 315 00:17:04,800 --> 00:17:07,800 Speaker 1: with the Democrats, but she still will be keeping her 316 00:17:07,800 --> 00:17:10,880 Speaker 1: committee assignments. She still plans to vote for a lot 317 00:17:10,920 --> 00:17:14,880 Speaker 1: of Biden's nominees and will continue to see exactly how 318 00:17:14,920 --> 00:17:19,000 Speaker 1: she lines up with Democrats and Republicans on various policies. UH. 319 00:17:19,119 --> 00:17:20,640 Speaker 1: To bring in a little bit more of this now 320 00:17:20,680 --> 00:17:22,679 Speaker 1: that we've had some time to to chew over what 321 00:17:22,800 --> 00:17:26,160 Speaker 1: this means and have some conversations on it. Bloomberg Politics 322 00:17:26,160 --> 00:17:30,200 Speaker 1: contributors Jennie chien Zano and Rick Davis, thank you guys 323 00:17:30,240 --> 00:17:33,280 Speaker 1: both so much for joining us. Uh. You know, Jenny, 324 00:17:33,320 --> 00:17:35,000 Speaker 1: I wanted to start with you a little bit. I know, 325 00:17:35,040 --> 00:17:38,040 Speaker 1: obviously this was some huge breaking news last week. We 326 00:17:38,119 --> 00:17:40,320 Speaker 1: had a bit of the weekend to digest it, and 327 00:17:40,359 --> 00:17:42,480 Speaker 1: I just want to get a sense now that we've 328 00:17:42,480 --> 00:17:44,919 Speaker 1: had a few days. How many ripples is this still 329 00:17:45,000 --> 00:17:48,520 Speaker 1: causing in d C. Is this something that people are 330 00:17:48,520 --> 00:17:50,399 Speaker 1: still a little bit freaked out about, or there's this 331 00:17:50,440 --> 00:17:52,840 Speaker 1: is something there is still some question marks on or 332 00:17:52,920 --> 00:17:54,439 Speaker 1: is there a kind of a sense that that we 333 00:17:54,560 --> 00:17:57,199 Speaker 1: now know how things are going to move forward? You know, 334 00:17:57,320 --> 00:17:59,720 Speaker 1: I think there's still question marks on it. And boy, 335 00:17:59,800 --> 00:18:01,880 Speaker 1: you know, she didn't give Democrats a lot of time 336 00:18:01,920 --> 00:18:06,000 Speaker 1: to celebrate their victory from the Georgia runoff before she 337 00:18:06,119 --> 00:18:09,000 Speaker 1: dropped this news. Um, you know, it wasn't you know, 338 00:18:09,560 --> 00:18:12,399 Speaker 1: wholly unexpected. But we really don't know how this is 339 00:18:12,400 --> 00:18:15,080 Speaker 1: going to pan out. And one of the reasons is 340 00:18:15,400 --> 00:18:18,480 Speaker 1: because we really don't know what she's gonna be doing 341 00:18:18,560 --> 00:18:21,040 Speaker 1: in the next two years, how she's gonna be voting. 342 00:18:21,040 --> 00:18:23,400 Speaker 1: You know, the White House, in my read, has been 343 00:18:23,440 --> 00:18:26,560 Speaker 1: taking sort of a wait and see strategy, complimenting her 344 00:18:26,640 --> 00:18:29,520 Speaker 1: saying she's voted with the President over of the times, 345 00:18:29,800 --> 00:18:32,000 Speaker 1: failing to mention the time she didn't vote with him. 346 00:18:32,320 --> 00:18:35,440 Speaker 1: She really really did a number on his legislative agenda. 347 00:18:35,480 --> 00:18:37,399 Speaker 1: You know, those are things like the filibuster and the 348 00:18:37,440 --> 00:18:40,239 Speaker 1: minimum wage and increasing the corporate tax rate. When she 349 00:18:40,320 --> 00:18:43,359 Speaker 1: said no, those things went away, but you know, she 350 00:18:43,359 --> 00:18:46,600 Speaker 1: did vote about and they've been hanging on that. So 351 00:18:46,680 --> 00:18:48,280 Speaker 1: I think they're taking a little bit of a weight 352 00:18:48,280 --> 00:18:50,320 Speaker 1: and see attitude in terms of how she votes. But 353 00:18:50,359 --> 00:18:52,960 Speaker 1: I think the real question is what this means for 354 00:18:53,040 --> 00:18:55,720 Speaker 1: Democrats in the Senate map for twenty four. They have 355 00:18:55,800 --> 00:18:58,960 Speaker 1: a really tough map in twenty four and they're going 356 00:18:59,000 --> 00:19:01,280 Speaker 1: to have to face some big questions like do they 357 00:19:01,320 --> 00:19:04,320 Speaker 1: primary her or for instance, do they take a view 358 00:19:04,400 --> 00:19:06,560 Speaker 1: as they have with like Angus King and Bernie Sanders 359 00:19:06,640 --> 00:19:08,920 Speaker 1: not primary her. That's going to be a big question. 360 00:19:08,960 --> 00:19:10,480 Speaker 1: I think a lot of it's going to depend on 361 00:19:10,760 --> 00:19:13,840 Speaker 1: who the Republicans put up against her out there, and 362 00:19:14,000 --> 00:19:16,119 Speaker 1: you know, of course how she votes and sort of 363 00:19:16,160 --> 00:19:19,960 Speaker 1: the reaction of Democrats in Washington to her comportment over 364 00:19:20,000 --> 00:19:23,159 Speaker 1: the next two years. Jenny, you you perfectly tied this 365 00:19:23,280 --> 00:19:25,760 Speaker 1: up because I actually wanted to go quickly, uh to 366 00:19:25,840 --> 00:19:29,119 Speaker 1: Senator Angus King. He spoke over the weekend to CNN 367 00:19:29,520 --> 00:19:32,960 Speaker 1: about his thoughts on Senator Cinema as well as what 368 00:19:33,080 --> 00:19:37,280 Speaker 1: this is going to mean in for her primary. You know, 369 00:19:37,280 --> 00:19:39,160 Speaker 1: there's a lot of speculation. Is she trying to avoid 370 00:19:39,160 --> 00:19:42,360 Speaker 1: a Democratic primary? One of the problems with primaries today 371 00:19:42,600 --> 00:19:46,159 Speaker 1: is that they tend to favor the activists on either side, 372 00:19:46,280 --> 00:19:50,800 Speaker 1: Republican or Democrat, and so somebody who does reach across 373 00:19:50,840 --> 00:19:53,800 Speaker 1: the aisle has trouble. You can lose your seat in 374 00:19:53,840 --> 00:19:57,240 Speaker 1: a primary, not because of your physician on immigration or 375 00:19:57,280 --> 00:19:59,280 Speaker 1: any of those kinds of things. You can lose your 376 00:19:59,320 --> 00:20:01,600 Speaker 1: seat because you're view to someone who talks to the 377 00:20:01,600 --> 00:20:05,359 Speaker 1: other side. Rick, You've got a background in the Senate 378 00:20:05,440 --> 00:20:07,240 Speaker 1: and in elections, and I just wanted to sort of 379 00:20:07,240 --> 00:20:09,800 Speaker 1: get your thoughts on what Senator King just said there. 380 00:20:09,840 --> 00:20:12,560 Speaker 1: Obviously he is actually an independent himself. He does caucus 381 00:20:12,600 --> 00:20:14,720 Speaker 1: with the Democrats, but he has got that I next 382 00:20:14,720 --> 00:20:17,159 Speaker 1: to his name. I mean, is this going to be 383 00:20:17,240 --> 00:20:21,560 Speaker 1: something switching the affiliation from Democrat to independent? How much 384 00:20:21,600 --> 00:20:24,840 Speaker 1: is that actually going to help Senator Cinema be able 385 00:20:24,880 --> 00:20:30,240 Speaker 1: to return to the Senate. You know, that's a good question, Emily, 386 00:20:30,400 --> 00:20:33,280 Speaker 1: and and I think you know, if she comports herself 387 00:20:33,359 --> 00:20:37,080 Speaker 1: like uh, Senator King has. He's immensely popular in his 388 00:20:37,119 --> 00:20:40,600 Speaker 1: own home state, you know, as an independent, he's obviously 389 00:20:40,680 --> 00:20:44,000 Speaker 1: been a great ally of Democrats, you know, in the 390 00:20:44,240 --> 00:20:47,240 Speaker 1: in the Senate um. Then there's much to do about nothing. 391 00:20:47,280 --> 00:20:50,359 Speaker 1: But you can't help but think that all the noise, 392 00:20:50,440 --> 00:20:53,600 Speaker 1: all the anger on the left of the Democratic Party 393 00:20:53,760 --> 00:20:57,879 Speaker 1: toward Christan cinema this year, and it's been it's been significant, 394 00:20:58,240 --> 00:21:02,199 Speaker 1: um and and vitriolic, both in Washington and in her 395 00:21:02,240 --> 00:21:05,800 Speaker 1: own home state with fellow Democrats. Uh, you really wonder 396 00:21:05,840 --> 00:21:10,000 Speaker 1: if that wasn't part of the consideration that she had 397 00:21:10,119 --> 00:21:13,160 Speaker 1: when she announced to be an independent. It's a very 398 00:21:13,240 --> 00:21:18,040 Speaker 1: complex state. She mentioned in her announcement that, um, there's 399 00:21:18,040 --> 00:21:21,080 Speaker 1: almost a majority of independent voters, that there are Democrats 400 00:21:21,119 --> 00:21:23,119 Speaker 1: and Republicans. And that's true. It's like a third or 401 00:21:23,119 --> 00:21:26,679 Speaker 1: third or third, but um, the complexity of running a 402 00:21:26,720 --> 00:21:31,080 Speaker 1: third party campaign is significant, and and and if that 403 00:21:31,160 --> 00:21:33,679 Speaker 1: was one of her considerations, I would say it had 404 00:21:33,720 --> 00:21:35,800 Speaker 1: to be a minor one, because there's really no apparent 405 00:21:35,920 --> 00:21:38,399 Speaker 1: upside to doing it the way she's doing it. I 406 00:21:38,400 --> 00:21:41,240 Speaker 1: would think be much easier for her to win a 407 00:21:41,400 --> 00:21:45,880 Speaker 1: party primary and then uh have a more than even 408 00:21:46,040 --> 00:21:48,600 Speaker 1: chance of winning in the general than trying to come 409 00:21:48,600 --> 00:21:51,320 Speaker 1: at it as a third party candidate. Yeah, it's obviously 410 00:21:51,359 --> 00:21:53,879 Speaker 1: incredibly difficult in this country to run as a third party. 411 00:21:53,920 --> 00:21:56,480 Speaker 1: I mean, you've seen some centers do it. Lisa Murkowski 412 00:21:56,600 --> 00:22:01,000 Speaker 1: successfully pulled it off, obviously not this past year, but previously. 413 00:22:01,560 --> 00:22:04,520 Speaker 1: But no, it's it's very tough to do, especially if 414 00:22:04,600 --> 00:22:08,440 Speaker 1: Democrats are going to run their own candidate who is 415 00:22:08,520 --> 00:22:11,680 Speaker 1: going to attract more folks from the left to are 416 00:22:11,720 --> 00:22:13,440 Speaker 1: are fed up with some of the things that we've 417 00:22:13,480 --> 00:22:17,840 Speaker 1: seen from Senator cinema in this past year. Um I 418 00:22:17,880 --> 00:22:20,280 Speaker 1: also wanted to switch the topics real quick, go from 419 00:22:20,320 --> 00:22:23,320 Speaker 1: the Senate to the House where obviously we're watching a 420 00:22:23,440 --> 00:22:27,280 Speaker 1: very very interesting race right now, maybe less of a 421 00:22:27,359 --> 00:22:32,440 Speaker 1: race and more of a balancing act for Republican Kevin McCarthy. Republicans, 422 00:22:32,520 --> 00:22:35,240 Speaker 1: he's the nominee to be Speaker, but of course that 423 00:22:35,320 --> 00:22:38,280 Speaker 1: vote is not coming until January three, and already we've 424 00:22:38,320 --> 00:22:41,000 Speaker 1: seen about five members of his own party say, hey, 425 00:22:41,040 --> 00:22:42,680 Speaker 1: we don't know if we're going to be able to 426 00:22:42,720 --> 00:22:45,680 Speaker 1: support him, and a huge question about what that's going 427 00:22:45,760 --> 00:22:50,200 Speaker 1: to look like. We had Congressman Ruben Gayego on MSNBC 428 00:22:50,440 --> 00:22:54,240 Speaker 1: talking about McCarthy. Gego is of course a Democrat, but 429 00:22:54,400 --> 00:22:58,639 Speaker 1: he talked a little bit about what McCarthy might be 430 00:22:58,680 --> 00:23:01,560 Speaker 1: able to do or or not do. Come with January three, 431 00:23:02,680 --> 00:23:04,320 Speaker 1: we don't know if chemic Cards is actually gonna able 432 00:23:04,320 --> 00:23:06,920 Speaker 1: to pull this off. You know, the creative train has 433 00:23:06,920 --> 00:23:09,239 Speaker 1: pulled in, the circuits has pulled, has has put up 434 00:23:09,240 --> 00:23:11,359 Speaker 1: the tent, and now the clowns are running around inside 435 00:23:11,400 --> 00:23:14,000 Speaker 1: and they're still not organized. So let's see what happens. 436 00:23:14,320 --> 00:23:16,480 Speaker 1: Um At the end of the day, we may have 437 00:23:16,560 --> 00:23:18,920 Speaker 1: something to work with. But you know, this is a 438 00:23:19,000 --> 00:23:22,080 Speaker 1: very scary time for this country because these members of 439 00:23:22,119 --> 00:23:24,680 Speaker 1: Congress are more interested in power and when they bring 440 00:23:24,720 --> 00:23:28,040 Speaker 1: to them, not what they can do for the country. Jenny, 441 00:23:28,119 --> 00:23:30,680 Speaker 1: what does it mean right now that Republicans are having 442 00:23:30,720 --> 00:23:35,920 Speaker 1: trouble uniting around a candidate first speaker, someone who's long 443 00:23:36,080 --> 00:23:40,280 Speaker 1: been sort of seen as the likely next Republican speaker. Yeah, 444 00:23:40,320 --> 00:23:42,600 Speaker 1: I mean, I think it's it's really bad news for 445 00:23:42,640 --> 00:23:45,240 Speaker 1: the Republican Party. They're in the House. They are weakening 446 00:23:45,359 --> 00:23:48,880 Speaker 1: their future potential speaker. I mean, you know, he likely 447 00:23:49,040 --> 00:23:52,160 Speaker 1: survives this, but he comes out of it weakened because 448 00:23:52,160 --> 00:23:54,520 Speaker 1: of all the giveaways in all the you know, sort 449 00:23:54,560 --> 00:23:58,320 Speaker 1: of negotiations he's had to uh, you know, sort of 450 00:23:58,400 --> 00:24:00,919 Speaker 1: contend with with these five or six are more you know, 451 00:24:00,960 --> 00:24:03,000 Speaker 1: people who are opposed to him in the party. And 452 00:24:03,040 --> 00:24:05,800 Speaker 1: I think, you know, Don Bacon really has said it best. 453 00:24:05,880 --> 00:24:08,639 Speaker 1: You know, he has really said given a warning, I 454 00:24:08,720 --> 00:24:12,040 Speaker 1: think to Republicans. Nancy Pelosi was able to govern the 455 00:24:12,080 --> 00:24:15,760 Speaker 1: exact same twenty two you know majority, and they were 456 00:24:15,760 --> 00:24:19,320 Speaker 1: able to get things done. Why are you throwing this away? Um? 457 00:24:19,359 --> 00:24:21,359 Speaker 1: And and it is really a warning to his own 458 00:24:21,400 --> 00:24:24,359 Speaker 1: conference that be careful what you do here. You know, 459 00:24:24,440 --> 00:24:27,960 Speaker 1: worst case scenario, they get a Democrat like Hakeem Jeffreys, 460 00:24:28,000 --> 00:24:30,800 Speaker 1: which is unlikely to happen, but you know, on best 461 00:24:30,800 --> 00:24:33,719 Speaker 1: case scenario, get they get a weekend Kevin McCarthy, and 462 00:24:33,720 --> 00:24:36,440 Speaker 1: that hurts everyone. And unfortunately it's you know, the five 463 00:24:36,560 --> 00:24:40,119 Speaker 1: or six opponents who really just want his head and 464 00:24:40,200 --> 00:24:42,879 Speaker 1: nothing else that leaves them in this weekend position. So 465 00:24:43,119 --> 00:24:45,000 Speaker 1: I think it's very bad news for the party at 466 00:24:45,000 --> 00:24:47,159 Speaker 1: this point, and it's got to be frustrating for the 467 00:24:47,240 --> 00:24:49,480 Speaker 1: vast majority of Republicans who want to move forward with 468 00:24:49,520 --> 00:24:52,800 Speaker 1: their agenda. And Rick, do you get a sense of 469 00:24:53,000 --> 00:24:55,400 Speaker 1: what's Kevin McCarthy going to have to do to wind 470 00:24:55,480 --> 00:24:58,040 Speaker 1: up winning some of these members over and are they 471 00:24:58,040 --> 00:25:00,760 Speaker 1: going to wind up becoming a constant headache for him? 472 00:25:00,800 --> 00:25:03,080 Speaker 1: Anything that he tries to do to see this kind 473 00:25:03,080 --> 00:25:05,920 Speaker 1: of obstruction, because it really does only take a handful 474 00:25:05,960 --> 00:25:09,960 Speaker 1: of members at this point with margins this narrow. Oh 475 00:25:10,000 --> 00:25:11,720 Speaker 1: for sure, Emily. I mean, as you know, you only 476 00:25:11,720 --> 00:25:14,680 Speaker 1: need you need to eighteen. But he doesn't have many 477 00:25:14,720 --> 00:25:18,080 Speaker 1: to lose, just three or four. And and the reality is, um, 478 00:25:18,119 --> 00:25:23,160 Speaker 1: it's very easy for detractors to pick on him right now. 479 00:25:23,200 --> 00:25:25,679 Speaker 1: I mean, he's in a very vulnerable position. He was 480 00:25:25,760 --> 00:25:28,879 Speaker 1: never a particularly strong leader within the caucus anyway. He 481 00:25:28,920 --> 00:25:32,200 Speaker 1: had pressure from the center, he had pressure from the 482 00:25:33,000 --> 00:25:36,679 Speaker 1: lunatic fringe, and and and he's really never dealt with it. 483 00:25:36,760 --> 00:25:39,720 Speaker 1: And and he's just sort of hoped I think that 484 00:25:39,800 --> 00:25:42,199 Speaker 1: his allegiance to Donald Trump would pave the way to 485 00:25:42,320 --> 00:25:45,280 Speaker 1: the speakership. Maybe he should have been doing more work 486 00:25:45,359 --> 00:25:48,200 Speaker 1: himself to to garner these votes. But the one thing 487 00:25:48,240 --> 00:25:51,360 Speaker 1: he is doing that is going to be tested by 488 00:25:51,400 --> 00:25:54,400 Speaker 1: time is he's keeping other people out of the race 489 00:25:54,440 --> 00:25:58,080 Speaker 1: against him. You can only lose to somebody else, and 490 00:25:58,240 --> 00:26:02,200 Speaker 1: uh and and and if there is a legitimate contender 491 00:26:02,280 --> 00:26:06,159 Speaker 1: in this race, it does complicate his tour to the 492 00:26:06,200 --> 00:26:10,119 Speaker 1: Speaker's job significantly. But right now he's doing a good 493 00:26:10,200 --> 00:26:13,960 Speaker 1: job at keeping everybody else's ambitions cool, and that's the 494 00:26:14,040 --> 00:26:17,240 Speaker 1: best thing he's got going for himself right now. Absolutely, 495 00:26:17,240 --> 00:26:20,119 Speaker 1: and it'll be interesting to see. We've heard Congressman Andy 496 00:26:20,160 --> 00:26:24,800 Speaker 1: Biggs uh, a House Freedom Caucus member from Arizona, say 497 00:26:24,840 --> 00:26:27,440 Speaker 1: that he would challenge McCarthy, but I know there's also 498 00:26:27,560 --> 00:26:30,720 Speaker 1: been some potential discussion that some of the other Republicans 499 00:26:30,720 --> 00:26:33,880 Speaker 1: and leadership might step up depending on what we see. 500 00:26:33,920 --> 00:26:36,560 Speaker 1: Of course, that's going to be very interesting to watch. 501 00:26:37,480 --> 00:26:42,919 Speaker 1: This is Bloomberg So On with Joe Matthew on Bloomberg Radio. 502 00:26:45,400 --> 00:26:49,400 Speaker 1: This is Emilie Wilkins filling in today for Joe Matthew. Well, 503 00:26:49,440 --> 00:26:53,800 Speaker 1: we are looking ahead to tomorrow, uh the epic showdown 504 00:26:54,000 --> 00:26:57,040 Speaker 1: with the House Financial Services Committee, where lawmakers will have 505 00:26:57,119 --> 00:27:00,600 Speaker 1: the chance to ask Sam Bankman Freed many questions that 506 00:27:00,680 --> 00:27:03,760 Speaker 1: they have on crypto, as well as give a sense 507 00:27:04,080 --> 00:27:07,399 Speaker 1: about exactly what Congress is going to do about f 508 00:27:07,520 --> 00:27:11,640 Speaker 1: t X, about crypto, about regulation. This is a new 509 00:27:11,760 --> 00:27:14,679 Speaker 1: area for Congress to look into and what we've already 510 00:27:14,720 --> 00:27:17,919 Speaker 1: seen some proposals on where they could go with regulation. 511 00:27:18,359 --> 00:27:20,760 Speaker 1: This hearing tomorrow is really going to give us a 512 00:27:20,920 --> 00:27:24,399 Speaker 1: much better sense of where things stand. We've already started 513 00:27:24,400 --> 00:27:28,560 Speaker 1: hearing from some lawmakers. UH. Congressman Brad Sherman at California 514 00:27:28,640 --> 00:27:32,040 Speaker 1: Democrat joined Javin Weston in Balance of Power today to 515 00:27:32,119 --> 00:27:34,760 Speaker 1: review what he's concerned about and what he wants to 516 00:27:34,840 --> 00:27:38,280 Speaker 1: learn more about tomorrow. I have one thing that I'm 517 00:27:38,280 --> 00:27:40,800 Speaker 1: concerned about is it's kind of huts book to have 518 00:27:40,880 --> 00:27:43,679 Speaker 1: investors who sent their money to the Bahamas so that 519 00:27:43,760 --> 00:27:47,240 Speaker 1: they could evade US investor protection law, which is the 520 00:27:47,280 --> 00:27:51,000 Speaker 1: only reason you established UH in exchange in the Bahamas. 521 00:27:51,080 --> 00:27:53,000 Speaker 1: And then the investors say, well, I sent my money 522 00:27:53,040 --> 00:27:57,560 Speaker 1: to the Bahamas to abate UH the SEC's protection. Now, dammit, 523 00:27:57,640 --> 00:28:02,920 Speaker 1: wide n't the SEC protect We protect American investors worldwide 524 00:28:03,119 --> 00:28:09,159 Speaker 1: if they choose to take their money offshore. Um. And 525 00:28:09,880 --> 00:28:12,119 Speaker 1: but at least we signal that when you send your 526 00:28:12,160 --> 00:28:14,240 Speaker 1: money to the Cayman Islands, when you send your money 527 00:28:14,280 --> 00:28:17,960 Speaker 1: to the Bahamas. UH, there's a reason why the financial 528 00:28:17,960 --> 00:28:20,600 Speaker 1: institution is there, and it's and the reason it's there 529 00:28:20,680 --> 00:28:23,760 Speaker 1: is to evade US law. Well, to talk a little 530 00:28:23,760 --> 00:28:26,880 Speaker 1: bit more about this, we're bringing in now Harvey Pick, 531 00:28:27,080 --> 00:28:31,879 Speaker 1: former chairman of the SEC, CEO of Colorama Partners. Harvey, 532 00:28:31,920 --> 00:28:34,200 Speaker 1: thank you so much for joining US. I just want 533 00:28:34,200 --> 00:28:37,160 Speaker 1: to pick up right where the congressman left off. How 534 00:28:37,359 --> 00:28:41,600 Speaker 1: do you regulate an asset that is designed explicitly to 535 00:28:41,800 --> 00:28:46,880 Speaker 1: allude regulation. Well, I think part of the problem is 536 00:28:47,040 --> 00:28:53,520 Speaker 1: the entire area has no regulation, even for domestic concerns. 537 00:28:53,600 --> 00:28:55,920 Speaker 1: We don't know what the rules of the road are. 538 00:28:56,040 --> 00:29:00,920 Speaker 1: We don't know who has authority and who doesn't. We've 539 00:29:00,960 --> 00:29:08,400 Speaker 1: got some jurisdiction grabbing by various agencies. But the real 540 00:29:08,520 --> 00:29:14,040 Speaker 1: issue is, Um, how is this industry being regulated in 541 00:29:14,120 --> 00:29:18,280 Speaker 1: the answer is it's not. The second in response to 542 00:29:18,360 --> 00:29:23,280 Speaker 1: your question, is if people choose to invest their money overseas, 543 00:29:23,840 --> 00:29:27,680 Speaker 1: there really isn't anything anyone can do to protect them. 544 00:29:28,120 --> 00:29:31,400 Speaker 1: They run the risk, and as long as they understand 545 00:29:31,480 --> 00:29:35,560 Speaker 1: the risk, um, then at least they do it with 546 00:29:35,640 --> 00:29:41,240 Speaker 1: their eyes open. But um, for a lot of people, umh, 547 00:29:41,440 --> 00:29:45,800 Speaker 1: this just seemed to be a quick way to get 548 00:29:45,960 --> 00:29:50,080 Speaker 1: rich and they thought that they were getting something uh 549 00:29:50,400 --> 00:29:55,920 Speaker 1: that was desirable, when in fact what they were getting was, 550 00:29:56,640 --> 00:30:01,800 Speaker 1: to put it bluntly, garbage. So UM, I think there 551 00:30:01,800 --> 00:30:07,960 Speaker 1: are real problems here, and the necessary effort is to 552 00:30:08,040 --> 00:30:14,520 Speaker 1: come up with an administration wide position on the regulation 553 00:30:14,680 --> 00:30:22,520 Speaker 1: of cryptocurrencies. And so when you hear Congress ask questions 554 00:30:22,560 --> 00:30:25,160 Speaker 1: of Sam Bateman free tomorrow, what are you going to 555 00:30:25,240 --> 00:30:27,440 Speaker 1: be listening for? Do you think that we're going to 556 00:30:27,520 --> 00:30:31,080 Speaker 1: start hearing that sort of administration wide policy. I mean, 557 00:30:31,120 --> 00:30:33,760 Speaker 1: obviously that the Biden administration might want to take their 558 00:30:33,800 --> 00:30:37,080 Speaker 1: own track from say Republicans in the House that will 559 00:30:37,120 --> 00:30:40,240 Speaker 1: have control of the Chamber next year. But overall, what 560 00:30:40,280 --> 00:30:44,280 Speaker 1: are you watching for in tomorrow's hearing? Well, I think, 561 00:30:44,600 --> 00:30:52,160 Speaker 1: UM one thing is to watch for some sensible development 562 00:30:52,560 --> 00:30:59,680 Speaker 1: of types of UM regulatory schemes. The administration put out 563 00:30:59,680 --> 00:31:06,920 Speaker 1: a statement in November on the need for a national 564 00:31:07,160 --> 00:31:13,640 Speaker 1: policy on regulating cryptocurrencies. I think that was a fairly 565 00:31:13,760 --> 00:31:18,200 Speaker 1: well done statement, and it's one that I think people 566 00:31:18,280 --> 00:31:21,120 Speaker 1: need to pay attention to. There have to be a 567 00:31:21,280 --> 00:31:28,440 Speaker 1: set of rules that govern cryptocurrencies, and they aren't necessarily 568 00:31:29,320 --> 00:31:34,040 Speaker 1: the rules that already exist. We've got sec efforts to 569 00:31:35,240 --> 00:31:41,160 Speaker 1: create a policy through enforcement actions, but UM, that is 570 00:31:41,240 --> 00:31:46,360 Speaker 1: really the worst way to solve this particular problem. You 571 00:31:46,440 --> 00:31:50,160 Speaker 1: can't do this by looking at the worst cases and 572 00:31:50,240 --> 00:31:52,280 Speaker 1: so on. You have to look at this as to 573 00:31:52,480 --> 00:31:59,680 Speaker 1: what appropriate functions cryptocurrencies can serve, and then finding a 574 00:31:59,760 --> 00:32:03,960 Speaker 1: way to come up with rules that will make sense 575 00:32:04,080 --> 00:32:09,320 Speaker 1: of how these interests are offers, how they're regulated, and 576 00:32:09,400 --> 00:32:13,360 Speaker 1: who has access to them. I also want to get 577 00:32:13,360 --> 00:32:15,960 Speaker 1: your specific thoughts because Congress has taken a bit of 578 00:32:16,000 --> 00:32:20,320 Speaker 1: a stab at this. You saw Senator Cynthia Loomis a Republican, 579 00:32:20,400 --> 00:32:24,440 Speaker 1: and Senator Kristen Gillibrand, a Democrat. They've introduced a bill 580 00:32:24,520 --> 00:32:27,960 Speaker 1: called the Digital Asset Bell that's providing a comprehensive framework 581 00:32:28,000 --> 00:32:31,400 Speaker 1: for the regulation of digital assets. Do you think that 582 00:32:31,400 --> 00:32:36,520 Speaker 1: that particular legislation is a good starting spot for Congress 583 00:32:36,560 --> 00:32:41,080 Speaker 1: to consider, continue their discussions and maybe sort of have 584 00:32:41,280 --> 00:32:43,800 Speaker 1: that pass and see what happens and then build off 585 00:32:43,840 --> 00:32:48,120 Speaker 1: of that. I do. It's it's not necessarily that that 586 00:32:48,320 --> 00:32:55,680 Speaker 1: legislation um should be adopted in uh substantially the formans now, 587 00:32:55,760 --> 00:33:01,640 Speaker 1: And it's that having a legislative pres option is what 588 00:33:01,920 --> 00:33:06,000 Speaker 1: is absolutely crucial at this particular point in time, and 589 00:33:06,040 --> 00:33:09,960 Speaker 1: so I think the senators should be given credit for 590 00:33:10,080 --> 00:33:14,880 Speaker 1: at least attempting to put together a package of thoughts 591 00:33:14,920 --> 00:33:22,040 Speaker 1: and ideas that would enable the government to regulate these 592 00:33:22,080 --> 00:33:27,480 Speaker 1: offerings and make use of the advantages that can come 593 00:33:27,600 --> 00:33:33,160 Speaker 1: with many of these cryptocurrencies. Are you how confident are 594 00:33:33,160 --> 00:33:37,160 Speaker 1: you in Congress's ability to handle this issue, because we've 595 00:33:37,200 --> 00:33:41,800 Speaker 1: seen in some other newer areas, I'm thinking things dealing 596 00:33:41,800 --> 00:33:46,280 Speaker 1: with technology with groups like Facebook, that sometimes when you 597 00:33:46,360 --> 00:33:50,440 Speaker 1: get to these hearings, the questions that lawmakers ask they're 598 00:33:50,520 --> 00:33:53,200 Speaker 1: just they're not really on on the edge of what 599 00:33:53,280 --> 00:33:55,520 Speaker 1: needs to be asked. It shows that they're still really 600 00:33:55,600 --> 00:33:58,400 Speaker 1: learning about some of these technologies and some of these 601 00:33:58,680 --> 00:34:01,920 Speaker 1: these different items out there. Do you have a sense 602 00:34:02,000 --> 00:34:05,240 Speaker 1: at this point on whether Congress is really able to 603 00:34:05,280 --> 00:34:09,040 Speaker 1: start asking these questions about crypto or is this something 604 00:34:09,040 --> 00:34:12,080 Speaker 1: that we're just gonna see it the hearing tomorrow. Well, 605 00:34:12,239 --> 00:34:16,240 Speaker 1: I don't know that we'll see it oft tomorrow's hearings, 606 00:34:16,280 --> 00:34:20,160 Speaker 1: but I do believe this is something that Congress is 607 00:34:20,560 --> 00:34:25,440 Speaker 1: eminently capable of handling. This is not a democratic or 608 00:34:25,600 --> 00:34:29,920 Speaker 1: Republican issue. This is a national issue. There's there's no 609 00:34:30,080 --> 00:34:36,759 Speaker 1: politics here. The question is what are the benefits of cryptocurrency, 610 00:34:37,120 --> 00:34:40,080 Speaker 1: how do we marshal them for the benefit of the 611 00:34:40,239 --> 00:34:44,560 Speaker 1: government and its citizens, and how do we establish rules 612 00:34:44,600 --> 00:34:47,759 Speaker 1: of the road. I don't think you'll see that tomorrow, 613 00:34:48,040 --> 00:34:50,880 Speaker 1: but that's what we should be looking for. Well, Harvey, 614 00:34:50,880 --> 00:34:52,640 Speaker 1: that is a great place to leave it. Thank you 615 00:34:52,640 --> 00:34:55,239 Speaker 1: so much for joining us, Harvey Pit, former Chairman of 616 00:34:55,320 --> 00:35:02,480 Speaker 1: the SEC. This is Bloomberg. This is Bloomberg Sound On 617 00:35:03,000 --> 00:35:08,920 Speaker 1: with Joe Matthew on Bloomberg Radio. Well, this is Emily 618 00:35:09,000 --> 00:35:14,120 Speaker 1: Wilkins filling in for Joe. Today. We're continuing our pre 619 00:35:14,640 --> 00:35:18,760 Speaker 1: hearing crypto coverage on sound On, ahead of of course, 620 00:35:19,200 --> 00:35:22,840 Speaker 1: tomorrow's big hearing where Sam Bateman Freed will be testifying 621 00:35:22,880 --> 00:35:25,600 Speaker 1: before members of Congress and they will be asking him 622 00:35:25,640 --> 00:35:29,359 Speaker 1: a number of questions. UH. To continue to break this down, 623 00:35:29,360 --> 00:35:33,080 Speaker 1: we're gonna bring back Bloomberg Politics contributors Jennie chien Zano 624 00:35:33,200 --> 00:35:36,520 Speaker 1: and Rick Davis. H Jenie, I wanted to ask you 625 00:35:36,600 --> 00:35:38,839 Speaker 1: kind of about the taking a few steps back, looking 626 00:35:38,880 --> 00:35:41,760 Speaker 1: at the big picture here, are we likely to see 627 00:35:41,760 --> 00:35:46,200 Speaker 1: Congress move a little more quickly on legislation dealing with 628 00:35:46,239 --> 00:35:50,600 Speaker 1: crypto given that there is some bipartisan support for legislation 629 00:35:50,840 --> 00:35:54,040 Speaker 1: and given what we saw with f TX, Yeah, you 630 00:35:54,080 --> 00:35:57,040 Speaker 1: know there is bipartisans support on this. I think what 631 00:35:57,040 --> 00:35:59,040 Speaker 1: we're likely to see is that this is the first 632 00:35:59,080 --> 00:36:02,080 Speaker 1: of many hearing in this area. And one thing I'm 633 00:36:02,120 --> 00:36:04,440 Speaker 1: really watching out for by way of seeing what comes 634 00:36:04,480 --> 00:36:07,360 Speaker 1: next is how Patrick McHenry handles this. He's going to 635 00:36:07,480 --> 00:36:10,399 Speaker 1: be the chair in the next Congress, and it may 636 00:36:10,480 --> 00:36:13,400 Speaker 1: sort of give us insight into that. And I'm also 637 00:36:13,520 --> 00:36:16,840 Speaker 1: really watching people like Tom Emer. He's been very critical 638 00:36:17,040 --> 00:36:20,760 Speaker 1: of Gary Gensler and the SEC for not doing their job, 639 00:36:20,960 --> 00:36:23,359 Speaker 1: and yet in March he wrote this letter saying they 640 00:36:23,440 --> 00:36:26,799 Speaker 1: overstepped in the crypto space. So I'm really watching to 641 00:36:26,880 --> 00:36:29,840 Speaker 1: see how he gets himself backs out of what seems 642 00:36:29,880 --> 00:36:32,319 Speaker 1: to be a bit of hypocrisy on that point. So 643 00:36:32,560 --> 00:36:34,759 Speaker 1: a lot to watch out for tomorrow, you know, as 644 00:36:34,960 --> 00:36:37,719 Speaker 1: as you just heard, there's fifty four members on this committee, 645 00:36:37,719 --> 00:36:41,319 Speaker 1: so it's gonna be, you know, a really interesting to hear. 646 00:36:41,520 --> 00:36:43,759 Speaker 1: I think more from the congressmen and women even than 647 00:36:43,800 --> 00:36:46,200 Speaker 1: Sam BigMan Freed. Sure. I feel like the trick for 648 00:36:46,239 --> 00:36:48,719 Speaker 1: these hearings is always trying to pick out those one 649 00:36:48,800 --> 00:36:50,640 Speaker 1: or two little things that they say that gives you 650 00:36:50,680 --> 00:36:54,120 Speaker 1: a direction of where they're going, what they planned to do, 651 00:36:54,400 --> 00:36:57,120 Speaker 1: where the agreements are. Rick, I'll just come to you 652 00:36:57,200 --> 00:36:59,120 Speaker 1: with with the same question, what are you going to 653 00:36:59,200 --> 00:37:02,840 Speaker 1: be watching for the hearing tomorrow? Well, I think I 654 00:37:03,160 --> 00:37:05,359 Speaker 1: agree with you, Emily. I think that people are gonna 655 00:37:05,400 --> 00:37:09,640 Speaker 1: pull out of this some outrageous statement that Sam bankman Free, 656 00:37:09,719 --> 00:37:13,880 Speaker 1: better known as SPF says in this virtual testimony, and 657 00:37:14,040 --> 00:37:16,440 Speaker 1: it will drive news for the for the balance of 658 00:37:16,480 --> 00:37:19,560 Speaker 1: the week in this area. I mean, look, obviously stiff 659 00:37:19,600 --> 00:37:23,200 Speaker 1: in the Senate, Chared Brown and Pat Toomey are unhappy 660 00:37:23,239 --> 00:37:25,920 Speaker 1: with the fact that he wouldn't uh comply with a 661 00:37:25,960 --> 00:37:29,440 Speaker 1: subpoena that come to Washington and address the concerns. They 662 00:37:29,480 --> 00:37:32,560 Speaker 1: say he owes it to the American people for an explanation, 663 00:37:32,600 --> 00:37:34,840 Speaker 1: and I think they're right. Um. I think that he 664 00:37:34,920 --> 00:37:38,120 Speaker 1: certainly spends all his time on Twitter telling everybody what 665 00:37:38,200 --> 00:37:40,600 Speaker 1: his opinions are in every topic, knowing to man except 666 00:37:41,160 --> 00:37:44,759 Speaker 1: accountability for his actions, you know, as a manager and 667 00:37:44,800 --> 00:37:48,879 Speaker 1: a fiduciary of billions of dollars. So um, I think 668 00:37:48,880 --> 00:37:52,000 Speaker 1: he could become the new sort of battering ram. Real 669 00:37:52,120 --> 00:37:56,200 Speaker 1: motivation for regulation. I think the winds are probably blowing 670 00:37:56,239 --> 00:37:59,239 Speaker 1: in the opposite direction from the SEC saying maybe the overregulated. 671 00:37:59,280 --> 00:38:02,080 Speaker 1: I think I think there's going to be a fundamental 672 00:38:02,680 --> 00:38:06,680 Speaker 1: move toward regulation because of the scandal, and scandals in 673 00:38:06,800 --> 00:38:10,839 Speaker 1: Washington always create change. Well, Rick, do do you think 674 00:38:10,840 --> 00:38:12,960 Speaker 1: this has changed that we're going to see? I mean, 675 00:38:13,120 --> 00:38:15,759 Speaker 1: obviously this year probably not going to be able to 676 00:38:15,800 --> 00:38:18,879 Speaker 1: get anything through. But next year, could we actually see 677 00:38:18,960 --> 00:38:21,240 Speaker 1: legislation on this or is this going to be something 678 00:38:21,320 --> 00:38:23,719 Speaker 1: where it's going to be the SEC that's going to 679 00:38:23,880 --> 00:38:27,279 Speaker 1: sort of be primarily responsible for coming up with with 680 00:38:27,360 --> 00:38:31,240 Speaker 1: regulations and rules while Congress goes through their usual long 681 00:38:31,320 --> 00:38:35,760 Speaker 1: process of coming up and passing legislation. I think that 682 00:38:35,760 --> 00:38:41,080 Speaker 1: that this area, crypto and regulation of the UH major 683 00:38:41,120 --> 00:38:44,600 Speaker 1: Internet companies are going to start the year in a flash. 684 00:38:44,640 --> 00:38:47,600 Speaker 1: I think that these are areas where there's bipartisan agreement 685 00:38:48,120 --> 00:38:52,560 Speaker 1: that they're unhappy with the administration of these two industries 686 00:38:53,160 --> 00:38:57,200 Speaker 1: that are relatively self regulated by most standards. And I 687 00:38:57,239 --> 00:38:58,839 Speaker 1: think Congress is going to act, and I think it's 688 00:38:58,840 --> 00:39:00,840 Speaker 1: going to act in a bipartist and fashion and I 689 00:39:01,320 --> 00:39:03,319 Speaker 1: and my bed is it's going to act early because 690 00:39:03,320 --> 00:39:05,719 Speaker 1: this is kind of a Christmas gift, right, you know 691 00:39:05,800 --> 00:39:09,239 Speaker 1: for regulation minded congress people. You know, because they now 692 00:39:09,280 --> 00:39:13,000 Speaker 1: have something that has outraged the American people and they 693 00:39:13,000 --> 00:39:15,800 Speaker 1: can do something about the outrage. I would say harder 694 00:39:15,800 --> 00:39:18,440 Speaker 1: to tell, you know, with the administration they've been sort of, 695 00:39:18,840 --> 00:39:21,480 Speaker 1: you know, all over the place on on crypto regulation, 696 00:39:21,640 --> 00:39:24,920 Speaker 1: and not just the SEC, but the FED has made 697 00:39:24,960 --> 00:39:27,600 Speaker 1: comments about this, and the FTCs made comments about it, 698 00:39:27,640 --> 00:39:31,280 Speaker 1: so it'll be interesting to see if anything's done well, Rick, Genie, 699 00:39:31,360 --> 00:39:34,120 Speaker 1: thank you so much. That was Rick Davis, Genie, Schanzano 700 00:39:34,239 --> 00:39:38,200 Speaker 1: are wonderful Bloomberg contributors. Thanks also to Harvey hit Up 701 00:39:38,320 --> 00:39:41,240 Speaker 1: as well as Terry Haynes for joining us. I'm Emily 702 00:39:41,320 --> 00:39:45,040 Speaker 1: Wilkins in for Joe Matthew. This has sound on and 703 00:39:45,160 --> 00:39:46,560 Speaker 1: this is Bloomberg