WEBVTT - Howard Lutnick Talks FMX

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio News.

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<v Speaker 2>We're going to now talk about a different part of

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<v Speaker 2>the market. A big move on Wall Street happening right now.

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<v Speaker 2>Cantor Fitzgerald has got the backing of major names on

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<v Speaker 2>Wall Street for its upcoming new futures exchange SMX. Investors

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<v Speaker 2>from Bank of America, Barclays, Citadels, Securities, City, Goldman, and

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<v Speaker 2>JP Morgan invested more than one hundred and seventy million

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<v Speaker 2>dollars for a nearly twenty six percent stake in FMX,

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<v Speaker 2>which will increase as they keep.

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<v Speaker 3>Using that platform.

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<v Speaker 2>We're going to bring in Canter Fitzgerald Chairman and CEO.

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<v Speaker 2>Howard Lucknick. You've talked a little bit about this before,

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<v Speaker 2>this idea of taking on CME in the future's business.

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<v Speaker 2>How do you take on a giant today with the help, frankly,

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<v Speaker 2>of every major Wall Street bank?

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<v Speaker 4>All right?

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<v Speaker 1>So BGC BGC Group Public Company owns this exchange, right,

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<v Speaker 1>and so we are the wholesaler of the world. So

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<v Speaker 1>you think when Fidelity or Pimco, when they wake up

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<v Speaker 1>in the morning want to buy something, they call a

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<v Speaker 1>big bank.

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<v Speaker 4>Who do those banks call? Like, what do they do? So?

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<v Speaker 1>BGC Group is the broker in between. So we're sort

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<v Speaker 1>of the exchange for everything in the world that doesn't.

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<v Speaker 4>Trade on an exchange.

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<v Speaker 1>And everybody always asked me, if you're the exchange for

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<v Speaker 1>everything that doesn't trade on an exchange, why don't you

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<v Speaker 1>become an exchange. So BGC set up FMX to build

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<v Speaker 1>a futures exchange to compete with the incredible monopoly of

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<v Speaker 1>in America, the Chicago Mercantolic Exchange, which is awesome.

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<v Speaker 4>It's worth eighty billion dollars.

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<v Speaker 1>And stands alone did ninety nine percent of futures in

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<v Speaker 1>America last year. It seems like a monopoly to me.

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<v Speaker 1>So all these banks came in as a partner. Ten

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<v Speaker 1>of the greatest trading firms one through ten, JP, Morgan Goldman, Sachs,

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<v Speaker 1>City Group, Morgan, Stanley, Wells, Fargo, Barkley's I don't even know,

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<v Speaker 1>i'mly going to leave someone else's Bank of America, Citadel,

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<v Speaker 1>you know, Jump Trading, the number one futures trader in

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<v Speaker 1>the world, Tower number one treasury traders.

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<v Speaker 4>These all are.

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<v Speaker 1>Together, all coming behind this exchange to make this exchange

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<v Speaker 1>so fun and so amazing.

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<v Speaker 2>Well, here's the question of CME as you say, has

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<v Speaker 2>ninety nine percent of the volume. Here, how come these

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<v Speaker 2>banks have supported you in this? What is the outcome

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<v Speaker 2>that you and them are looking for?

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<v Speaker 1>Well, look, when you're alone, like the CMEME, they do

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<v Speaker 1>as I say, they serve a they have a great

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<v Speaker 1>product and they charge.

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<v Speaker 4>They charge a great price, like holy.

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<v Speaker 1>Moly, and sort of like every Christmas they just raise

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<v Speaker 1>their price.

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<v Speaker 4>You know, it's a Christmas present, let's just raise our price.

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<v Speaker 1>So the banks want an alternative, they want a competitor.

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<v Speaker 4>And what else they want is innovation. So we have the.

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<v Speaker 1>Fastest system right, the tightest spreads. And we did this

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<v Speaker 1>in US treasury. So we started with the US Treasury

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<v Speaker 1>now had when we announced that we were going to

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<v Speaker 1>be in the US treasury market, like in exchange, they

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<v Speaker 1>had eighty five percent market share to see me, so

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<v Speaker 1>I call them the heavyweight cham right, and there was

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<v Speaker 1>fifteen percent by other players.

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<v Speaker 4>So we went in.

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<v Speaker 1>We now have twenty eight percent and they're in the

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<v Speaker 1>mid sixties. So if someone thinks we can't get a

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<v Speaker 1>glove on the champ.

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<v Speaker 4>They're wrong. They're not watching. So the treasury business was one.

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<v Speaker 1>Now we're going to do treasury futures you might say, well,

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<v Speaker 1>why shouldn't you win in that as well, And the

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<v Speaker 1>answer is, I think we're going to and we're going

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<v Speaker 1>to do SOFA futures, which are like interest rate swaps,

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<v Speaker 1>and that's going to be amazingly cool as well.

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<v Speaker 2>You've been talking about this interest rate business treasuries in

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<v Speaker 2>particular as well. Are there other markets that you would

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<v Speaker 2>look to break into that you're not currently in.

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<v Speaker 1>Well, we're going to start with the interest rate world.

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<v Speaker 1>But when you've got the world's created trading firms as

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<v Speaker 1>your partner, they're going to say what's next. And I

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<v Speaker 1>would think other futures exchanges to start will be a

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<v Speaker 1>classic move as we go around the world, equities, bonds,

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<v Speaker 1>it's a futures exchange. You can do anything, So it's

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<v Speaker 1>really fun. We have the technologies doing in place. See

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<v Speaker 1>the thing about BGC Group is it already has the

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<v Speaker 1>connection to all these people.

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<v Speaker 4>We don't have to start building it today.

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<v Speaker 1>We're going to open in September, right, and we're going

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<v Speaker 1>to start and you know, with that futures exchange, you

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<v Speaker 1>just want everybody to connect. So the first year we're

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<v Speaker 1>going to get everyone to connect. Second year we're going

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<v Speaker 1>to get everyone trading, and in the third year it's

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<v Speaker 1>going to be full blown, a full on competition for

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<v Speaker 1>the eighty billion dollars heavyweight chair.

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<v Speaker 2>We'll talk about that timeline in a second, but you

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<v Speaker 2>had mentioned the Christmas present of higher fees from the exchanges.

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<v Speaker 2>Do you plan to lower trading costs on this new

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<v Speaker 2>venue with.

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<v Speaker 4>The word for certain be helpful?

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<v Speaker 1>Yes, absolutely, absolutely, absolutely.

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<v Speaker 4>The concept of being much more efficient, much.

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<v Speaker 1>Faster, and much cheaper will create eight more volume, will

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<v Speaker 1>be innovation.

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<v Speaker 4>We'll do all sorts of things.

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<v Speaker 1>We'll build an example, if you want to trade one

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<v Speaker 1>futures contract against another futures contract, it's built into the

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<v Speaker 1>trading system, so you can't miss. It's atomically built in,

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<v Speaker 1>rather than two different systems sort of trying to figure

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<v Speaker 1>it out.

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<v Speaker 4>I mean, you can just be.

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<v Speaker 1>Innovative, clever, smart, and faster, and the banks are all

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<v Speaker 1>behind us, the greatest traders in the world behind us,

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<v Speaker 1>the greatest technology that's already installed.

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<v Speaker 4>I think we're I'm really I'm.

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<v Speaker 1>If I don't seem like I'm having fun, you haven't

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<v Speaker 1>spent time with me.

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<v Speaker 4>This is so much fun for us, Howard.

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<v Speaker 2>Today it's valued at six hundred and sixty seven million

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<v Speaker 2>dollars with the new backers that you've bought on board.

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<v Speaker 2>You've kind of mentioned it through your timeline to you

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<v Speaker 2>expand the business.

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<v Speaker 3>What is this company valued in three to five years?

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<v Speaker 1>Well, it's sort of like one of my favorite thoughts

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<v Speaker 1>is when George Clooney tasted some tequilas, right, and he

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<v Speaker 1>bought a tequila company. How much was that tequila company worth?

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<v Speaker 1>I think he bought it for like seven million dollars

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<v Speaker 1>and then he sold it for seven hundred million. So

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<v Speaker 1>these banks are my George Clooney, you know, I see

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<v Speaker 1>the mom like, these guys are just so these men

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<v Speaker 1>and women are just so handsome.

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<v Speaker 3>Goal, do you have a target on how big you

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<v Speaker 3>want to get?

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<v Speaker 1>I think we want to gain market share. Likely we've

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<v Speaker 1>done in US treasuries. Our US treasury business, which competes

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<v Speaker 1>with the Chicago market dollars change, grows one to two

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<v Speaker 1>points market share every single quarter.

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<v Speaker 4>So we were twenty six percent at the end of

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<v Speaker 4>the year. We just put out.

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<v Speaker 1>This morning with you guys twenty eight percent this quarter,

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<v Speaker 1>so two percent per quarter.

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<v Speaker 4>I think we're going to keep growing.

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<v Speaker 1>We'll get to half and I think our futures exchange

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<v Speaker 1>will just keep growing and eventually we'll get to half

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<v Speaker 1>and I think that eventually will become enormously valuable for

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<v Speaker 1>us for competition. It'll drive down costs, it'll drive up volumes,

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<v Speaker 1>It'll be great for melic.

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<v Speaker 2>It's interesting to hear you come in and talk so

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<v Speaker 2>much about grow because when you look across Wall Street

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<v Speaker 2>right now, it's hard to find a lot of growth,

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<v Speaker 2>particularly when it comes to headcount and expansion. What does

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<v Speaker 2>this mean for all of your companies, Canner Fitzgerald BGC

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<v Speaker 2>in terms of what you want to be able to

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<v Speaker 2>do bring more people on board?

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<v Speaker 3>Is that possible for you?

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<v Speaker 4>Sure?

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<v Speaker 1>I mean to be. When you're innovative, you can create

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<v Speaker 1>new things. So we're hiring tech people up a storm.

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<v Speaker 1>BGC is growing amazingly.

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<v Speaker 4>Stock was up. BGC group was up ninety.

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<v Speaker 1>Percent last year, and it's on a tear again and

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<v Speaker 1>it's going to be imagined. You have this exchange where

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<v Speaker 1>all these banks going in at a six hundred and

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<v Speaker 1>sixty seven million dollar valuation.

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<v Speaker 4>But that was yesterday.

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<v Speaker 1>What do you think it's worth today with all these

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<v Speaker 1>banks as your partners, multiples and multiples higher. I'm sure

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<v Speaker 1>private equity firms would love to invest at three or

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<v Speaker 1>four times that much. We aren't sellers. We're going to

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<v Speaker 1>build a great business. BGC is growing up a storm,

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<v Speaker 1>and so is Cantor. So I think there's lots of

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<v Speaker 1>growth ahead.

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<v Speaker 2>So let's talk about the markets now too, because you're

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<v Speaker 2>in the treasury business. Of course, we have the two

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<v Speaker 2>year about to touch five percent once again, a lot

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<v Speaker 2>of expectations changing in this market, Treasury auctions coming at

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<v Speaker 2>really a record clip.

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<v Speaker 3>Almost across the curve. What kind of volatility does that create?

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<v Speaker 2>And where do you think the treasury market really goes

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<v Speaker 2>from here this year?

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<v Speaker 1>All right, So we have two things that are incredible

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<v Speaker 1>to think about. The Fed's balance sheet is seven point

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<v Speaker 1>five trillion dollars and that's got to come down.

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<v Speaker 4>So that means they're not going to buy the treasuries.

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<v Speaker 4>They need someone else to buy them.

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<v Speaker 1>That coupled with our beautiful government running deficits of one

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<v Speaker 1>point eight trillion a year, so you've got just huge supply,

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<v Speaker 1>huge supply coming that's got to keep rates higher for longer.

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<v Speaker 1>It has to keep rates higher for longer.

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<v Speaker 4>I view it as steady.

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<v Speaker 1>Right when I was here in January with you guys,

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<v Speaker 1>I said rates would be steady, and where have they

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<v Speaker 1>been since then? Steady? They remember people were talking about

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<v Speaker 1>six or seven cuts. I was like, ha, ha, well

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<v Speaker 1>who was cutting six or seven times? I think the

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<v Speaker 1>Fed is gonna stay steady. I think inflation is stubborn.

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<v Speaker 1>We're hanging in there. You're seeing the two year note.

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<v Speaker 1>Think about this. The market is saying two years at

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<v Speaker 1>five percent? So what's the core market really saying. They're saying,

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<v Speaker 1>we're not really going anywhere right where? I mean what

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<v Speaker 1>short term rates are at five and a quarter? So

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<v Speaker 1>if you said the average for the next two years

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<v Speaker 1>was gonna be five percent, right, what you're saying, We're

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<v Speaker 1>going to stick around here?

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<v Speaker 4>And we are.

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<v Speaker 1>So the Fed has the ability to cut a little

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<v Speaker 1>because remember, if they let go of their balance sheet,

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<v Speaker 1>that's tightening, right. I'm not buying anymore, you're gonna buy.

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<v Speaker 1>That's gonna take money out of the system. When the

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<v Speaker 1>FED stops buying and cuts its balance sheet, that's a tightening.

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<v Speaker 1>So the FED can cut a little bit of interest rates.

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<v Speaker 3>When's that first cut?

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<v Speaker 1>I think right before the election, Not that the FED

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<v Speaker 1>is involved in elections, but September.

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<v Speaker 4>I'm thinking, I'm thinking.

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<v Speaker 1>September, and it's not really to move the economy. It's

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<v Speaker 1>to show off a little bit, help a little bit.

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<v Speaker 1>You know, the guy who's employing you today, maybe he'll give.

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<v Speaker 4>You your job again if he gets elected. Can't hurt.

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<v Speaker 1>So I think September one cut. That's it, just showing

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<v Speaker 1>off and I'm really doing it.

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<v Speaker 2>Really curious about your views on the election here too.

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<v Speaker 2>Earlier this month, you hosted a fundraiser for Donald Trump

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<v Speaker 2>alongside John Paulson in Palm Beach. What would a potential

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<v Speaker 2>Trump presidency trump two point zero?

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<v Speaker 3>What would that mean for the markets?

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<v Speaker 4>Well?

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<v Speaker 1>Again, he last time, if you remember, there was a

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<v Speaker 1>lot of consternation when he was elected, and my view

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<v Speaker 1>was it will be good for business, it will be

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<v Speaker 1>good for the banks, and it was the banks traded

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<v Speaker 1>incredibly Well. You know, the Republican Party is a less

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<v Speaker 1>regulatory party, right. You saw the Federal Trade Commission just

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<v Speaker 1>came out and said non competes are something they want

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<v Speaker 1>to do away with.

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<v Speaker 4>That's not really business friendly.

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<v Speaker 1>Right, So an administration that's more business friendly probably is

0:11:26.960 --> 0:11:31.240
<v Speaker 1>good for stocks, although you can't say lately, Joe Biden's

0:11:31.280 --> 0:11:34.160
<v Speaker 1>not good for stocks. The market's doing perfectly fine, and

0:11:34.240 --> 0:11:37.160
<v Speaker 1>stocks are doing perfectly fine, So I think it's not

0:11:37.200 --> 0:11:39.120
<v Speaker 1>going to be as much as people think. But I

0:11:39.160 --> 0:11:44.440
<v Speaker 1>think a Trump administration is just less regulatory, which businesses like.

0:11:44.679 --> 0:11:45.720
<v Speaker 4>Less like the.

0:11:45.600 --> 0:11:48.679
<v Speaker 1>Federal Trade Commission saying non competes. You know, they got

0:11:48.679 --> 0:11:52.920
<v Speaker 1>sued right away. So it just seems overbroad less regulation

0:11:53.120 --> 0:11:56.640
<v Speaker 1>is good for markets, good for business, and I think businesses.

0:11:56.200 --> 0:11:56.720
<v Speaker 4>Like that better.

0:11:57.000 --> 0:11:59.000
<v Speaker 2>Well, what do you think this means in terms of

0:11:59.040 --> 0:12:01.760
<v Speaker 2>the attitudes from the business community around Donald Trump? Do

0:12:01.800 --> 0:12:05.040
<v Speaker 2>you think that there's any changes that you've seen, particularly

0:12:05.679 --> 0:12:07.720
<v Speaker 2>given that you have such a closier to the ground.

0:12:08.480 --> 0:12:12.600
<v Speaker 4>I think it's you feel more coming. I think they were.

0:12:13.640 --> 0:12:16.559
<v Speaker 1>They were afraid in the beginning, I think when it

0:12:16.679 --> 0:12:17.920
<v Speaker 1>was still during the primaries.

0:12:17.920 --> 0:12:20.120
<v Speaker 4>But you feel more and more people coming.

0:12:21.040 --> 0:12:24.560
<v Speaker 1>Surprisingly, people who would never have said that before come

0:12:24.640 --> 0:12:26.440
<v Speaker 1>up to me and say, you know, I'm thinking about

0:12:26.440 --> 0:12:28.880
<v Speaker 1>it because they really don't like immigration. I mean they

0:12:29.000 --> 0:12:32.440
<v Speaker 1>just immigration is just something like who talks about immigration

0:12:32.520 --> 0:12:35.880
<v Speaker 1>at dinner parties? The answers these days, everybody talks about it.

0:12:35.880 --> 0:12:37.480
<v Speaker 1>I mean, you have it in New York, everywhere, you

0:12:37.520 --> 0:12:40.520
<v Speaker 1>have it in San Francisco everywhere, so immigration matters, and

0:12:40.920 --> 0:12:43.240
<v Speaker 1>just the things like today with the Federal Trade Commission.

0:12:43.240 --> 0:12:46.360
<v Speaker 1>I mean, it's just, you know, it's just big regulatory push.

0:12:46.440 --> 0:12:52.520
<v Speaker 1>So I think business is moving more towards the Republican side,

0:12:52.600 --> 0:12:55.680
<v Speaker 1>surprisingly more towards the Republican side than they were before.

0:12:56.120 --> 0:12:58.400
<v Speaker 1>But I think it's going to be a tough forward election.

0:12:58.559 --> 0:13:02.319
<v Speaker 1>I really think it's going to be dead heat.

0:13:02.240 --> 0:13:04.520
<v Speaker 3>Close, dead heat close.

0:13:04.640 --> 0:13:07.320
<v Speaker 2>How do you think that translates to volatility into the

0:13:07.320 --> 0:13:09.760
<v Speaker 2>markets throughout the year and into next even given the

0:13:09.880 --> 0:13:13.000
<v Speaker 2>challenges you're seeing around the world, and given the challenges

0:13:13.000 --> 0:13:15.520
<v Speaker 2>you're seeing in the US's own economy starting to come up.

0:13:15.640 --> 0:13:20.240
<v Speaker 1>I think big volatility come the end of September going

0:13:20.280 --> 0:13:25.120
<v Speaker 1>into the election. I mean the uncertainty, well, investors tend

0:13:25.120 --> 0:13:26.840
<v Speaker 1>to put their hands in their pockets when they don't

0:13:26.840 --> 0:13:28.960
<v Speaker 1>know what's going on, right when you have a good

0:13:29.080 --> 0:13:31.800
<v Speaker 1>confidence of where you're going and you go investing. So

0:13:31.840 --> 0:13:36.960
<v Speaker 1>I think volumes will decline a bit and volatility will

0:13:37.080 --> 0:13:39.960
<v Speaker 1>rise because people won't know which way they're coming or going.

0:13:39.960 --> 0:13:43.720
<v Speaker 1>So I think October is going to be just a

0:13:43.880 --> 0:13:46.680
<v Speaker 1>crazy time because people won't know what the heck is

0:13:46.720 --> 0:13:49.200
<v Speaker 1>going on and the election. You know, it's amazing about

0:13:49.240 --> 0:13:53.960
<v Speaker 1>elections in America. Once it's settled, markets go right back

0:13:54.000 --> 0:13:56.920
<v Speaker 1>to normal. So I think once it's settled, I think

0:13:56.960 --> 0:13:59.760
<v Speaker 1>you're going to have a much better market than you're.

0:13:59.640 --> 0:14:00.680
<v Speaker 4>Going to in October.

0:14:00.760 --> 0:14:04.640
<v Speaker 2>Another volatile asset bitcoin, You have been very vocal in

0:14:04.679 --> 0:14:07.880
<v Speaker 2>your kind of constructive view about bitcoin, particularly as it's

0:14:07.960 --> 0:14:08.760
<v Speaker 2>used around the world.

0:14:08.800 --> 0:14:10.319
<v Speaker 3>Interesting though, you did.

0:14:10.160 --> 0:14:13.760
<v Speaker 2>Say that it would be benefiting and be bounding this year,

0:14:13.800 --> 0:14:16.360
<v Speaker 2>but you didn't say that the ETF would necessarily bring

0:14:16.400 --> 0:14:16.760
<v Speaker 2>it there.

0:14:16.840 --> 0:14:18.800
<v Speaker 3>Would you be a buyer of bitcoin at these levels?

0:14:19.400 --> 0:14:23.800
<v Speaker 1>I think so bitcoin just had right, which means that

0:14:23.880 --> 0:14:26.680
<v Speaker 1>the work you do to get a bitcoin, the price

0:14:26.720 --> 0:14:30.400
<v Speaker 1>is twice as high. So that is theoretically a benefit

0:14:30.680 --> 0:14:32.800
<v Speaker 1>for the next four years for bitcoin. So I think

0:14:33.120 --> 0:14:37.400
<v Speaker 1>over time bitcoin will rally even from here over the

0:14:37.400 --> 0:14:38.080
<v Speaker 1>next four years.

0:14:38.080 --> 0:14:39.360
<v Speaker 4>So if you bring me back four.

0:14:39.240 --> 0:14:41.680
<v Speaker 1>Years from today, I think the market will be will

0:14:41.720 --> 0:14:45.160
<v Speaker 1>be higher. And I think these things. It has a

0:14:45.280 --> 0:14:49.600
<v Speaker 1>place in the world and it's not going away, So

0:14:49.680 --> 0:14:50.080
<v Speaker 1>I think.

0:14:49.920 --> 0:14:51.760
<v Speaker 4>That's sort of the way to think about it.

0:14:51.800 --> 0:14:54.000
<v Speaker 2>You've spoken about your optimism around tether as well.

0:14:54.040 --> 0:14:55.000
<v Speaker 3>I'm curious about your.

0:14:55.000 --> 0:14:57.400
<v Speaker 2>View on this, because recently S and P analysts have

0:14:57.440 --> 0:15:01.080
<v Speaker 2>said if the latest US stable coin built passes that

0:15:01.240 --> 0:15:03.400
<v Speaker 2>US companies would no longer be able to hold or

0:15:03.440 --> 0:15:06.600
<v Speaker 2>transact in Tether because it's run by a non US entergy.

0:15:06.880 --> 0:15:08.920
<v Speaker 2>How do you prepare for something like that?

0:15:09.440 --> 0:15:12.840
<v Speaker 1>Well, I think, first off, Americans stable coins in general,

0:15:12.840 --> 0:15:16.000
<v Speaker 1>there's two big ones. There's tether and there's Circle, okay,

0:15:16.080 --> 0:15:18.920
<v Speaker 1>and Americans should have nothing to do with these things.

0:15:19.040 --> 0:15:21.200
<v Speaker 1>I have dollars in my pocket, I have dollars in

0:15:21.240 --> 0:15:23.280
<v Speaker 1>my bank account, I have a credit card and dollars.

0:15:23.320 --> 0:15:27.680
<v Speaker 1>I can venmo, you PayPal, zell. These are all simple

0:15:27.680 --> 0:15:31.400
<v Speaker 1>things for Americans. We have no business being near stable coins.

0:15:31.440 --> 0:15:37.200
<v Speaker 1>But I'll tell you what Argentina, Turkey, Venezuela. If our

0:15:37.240 --> 0:15:40.360
<v Speaker 1>money right, if our bank account we woke up with

0:15:40.440 --> 0:15:43.960
<v Speaker 1>the uh, you know, the Turkish lira, which was down

0:15:44.080 --> 0:15:47.960
<v Speaker 1>sixty five percent last year, we'd be doomed. So you

0:15:48.080 --> 0:15:51.720
<v Speaker 1>want to hold the digital dollar. So that's where tether

0:15:52.200 --> 0:15:56.040
<v Speaker 1>really flourishes. It's in the emerging markets. So the concept

0:15:56.080 --> 0:16:01.000
<v Speaker 1>of trading stable coins in America, I.

0:16:00.920 --> 0:16:02.840
<v Speaker 4>Just don't get it. So I don't think it has

0:16:02.920 --> 0:16:04.320
<v Speaker 4>anything to do with America.

0:16:04.440 --> 0:16:07.920
<v Speaker 1>I think what we care about as Americans is that

0:16:07.960 --> 0:16:10.720
<v Speaker 1>the dollar is all powerful in the world.

0:16:10.800 --> 0:16:13.600
<v Speaker 2>Do you worry, ever, that there could be the use

0:16:13.680 --> 0:16:17.520
<v Speaker 2>of bitcoin or tether being used to evade US sanctions

0:16:17.760 --> 0:16:20.200
<v Speaker 2>Given the use of it around the world, particularly coming

0:16:20.200 --> 0:16:21.160
<v Speaker 2>out of Russia.

0:16:21.240 --> 0:16:25.800
<v Speaker 1>I think the key to digital is that it's always digital.

0:16:25.880 --> 0:16:28.960
<v Speaker 1>You know, dollars, you remember when we went into Iraq,

0:16:29.040 --> 0:16:33.120
<v Speaker 1>they found like rooms of four billion dollars on pallets

0:16:33.440 --> 0:16:36.120
<v Speaker 1>that you can't trace, but digital money you can trace.

0:16:36.520 --> 0:16:39.200
<v Speaker 1>I think the firms like Circle and Tether have to

0:16:39.240 --> 0:16:42.720
<v Speaker 1>work deeply closely with law enforcement and grab it because

0:16:42.720 --> 0:16:44.680
<v Speaker 1>remember these are digital money. All they can do is

0:16:44.720 --> 0:16:49.080
<v Speaker 1>move around, and the blockchain always keeps track. So think

0:16:49.080 --> 0:16:52.160
<v Speaker 1>of the AI and think of the tools the government's

0:16:52.200 --> 0:16:52.640
<v Speaker 1>going to have.

0:16:52.960 --> 0:16:54.880
<v Speaker 4>They are going to get better and better.

0:16:54.880 --> 0:16:58.240
<v Speaker 1>The way I describe it is government moves reasonably slowly,

0:16:58.760 --> 0:17:01.960
<v Speaker 1>but it always gets there, sooner or later we'll get there.

0:17:01.960 --> 0:17:04.720
<v Speaker 1>So they'll have great AI tools. They're going to use

0:17:04.800 --> 0:17:08.120
<v Speaker 1>their AI tools. Any criminal that he wants to use

0:17:08.480 --> 0:17:12.520
<v Speaker 1>Circle or Tether is going to get caught. It's going

0:17:12.560 --> 0:17:15.080
<v Speaker 1>to get seized because it's digitals. I mean, you can't

0:17:15.080 --> 0:17:18.040
<v Speaker 1>really hide it. It's on the blockchain. You can follow

0:17:18.040 --> 0:17:20.480
<v Speaker 1>it from here to here to here to here. So

0:17:20.560 --> 0:17:23.760
<v Speaker 1>I think it's good for news to say, oh, they're

0:17:23.840 --> 0:17:25.760
<v Speaker 1>using it like this and this, but they're all going

0:17:25.800 --> 0:17:28.880
<v Speaker 1>to get caught. They're all working Tether and Circle are

0:17:28.920 --> 0:17:32.439
<v Speaker 1>working closely with law enforcement, and these crooks are just

0:17:32.800 --> 0:17:35.200
<v Speaker 1>it's so much worse than a regular dollar, at least

0:17:35.200 --> 0:17:36.879
<v Speaker 1>a dollar in their pocket they can hide.

0:17:36.960 --> 0:17:39.640
<v Speaker 4>How can they hide a digital dollar? That's a joke.

0:17:40.560 --> 0:17:40.879
<v Speaker 3>Howard.

0:17:40.920 --> 0:17:43.120
<v Speaker 2>We thank you so very much for breaking your big

0:17:43.119 --> 0:17:46.360
<v Speaker 2>news with us. Congratulations on getting this venue off the ground,

0:17:46.680 --> 0:17:49.320
<v Speaker 2>and for all of your candor that is Canter Fitzgeraldchure

0:17:49.480 --> 0:17:50.760
<v Speaker 2>and CEO Howard Lennox