cryptocurrency derivatives are regulated by the cftc. finally anyone who markets a cryptocurrency service or tool that is deceptive or fraudulent is liable under various laws enforced by the cfpb ftc fcc cftc and state attorneys general. and the results of all of this regulation speak for themselves in 2020. only 0.34% of all cryptocurrency transaction volume involved a criminal sender or recipient. despite several high-profile hacks of overseas exchanges. no american exchange has suffered a substantial hack or loss of consumer funds. operators of money laundering exchanges overseas have been arrested sales of unregistered tokenized securities have been targeted by sec enforcement and criminal ransomware rings have had their servers seized and their ransoms recovered all of this has happened by sensibly applying existing laws to the cryptocurrency space. we don't need new regulations. and all of this has also happened while preserving the fundamental value of cryptocurrency as open access platforms for financial services and innovation.

the cftc and the s.e.c. should be empowered by congress to move quickly to provide retail investors with a broader array of regulated crypto products attractive to market participants but come with the robust market oversight of these regulatory regimes. this should happen now. congress should also direct the s.e.c. to immediately create clear, workable criteria as to which digital assets are securities and subject to u.s. security laws and regulations. second, while regulators in new york and miami in particular have been crypto forward regulators and will continue to be leaders in the space, congress needs to pass legislation to provide for the federal preemption of the state by state licensing requirements for the direct purchasing and sale of cryptocurrency. this will ensure that these transactions are subject to the level of market oversight that we currently have in the futures and securities markets. the logical regulator is the cftc but you must ensure that you fully fund them so they can take on thi

and the cftc. so, how are the crypto currency markets currently regulated and how is this current proficient laws proposed? >> that is an excellent question, and like you i come from the commodities side when i look at the markets, and bitcoin and eth are the framework of the commodities, and so at the spot level, the cash level, you know, the ctc has not been active in that space of sort of the robust market oversight they provide to the futures exchanges, and that is because of the function of the commodity markets, and they sort of arose from the commercial entities coming together to buy and sell their pork bellies and orange juice and wheat and products so that we don't have a sort of form of commodity, and so bitcoin is intangible commodity and novel application of the laws and the systems that have existed for almost 100 years. so what i would recommend, and what i think that makes sense is the ctfc is a robust and experienced market regulator. i think that it makes sense to draw digital ass

know having run one of these agencies, there is a conflict between the fed and the occ, or sec and cftc. because of that, it is hard to get clarity. if you look at the united kingdom where there is basically a single regulator for the entire financial system, it's a lot easier to get clarity. over here, you have competition among agencies. there is overlap in jurisdiction. i will say we are not as far behind as people might think. at the end of the last administration, all the major regulators, myself included, got together on the president's working group and started providing clarity on certain crypto assets. i think that is an example of how our regulatory system can adapt the fall regulators work together. joe: let me ask you a question about decentralized finance and so forth. are some of these de facto equities and trading as such? brian: it is hard to say. there are certainly decentralized exchanges that are selling crypto tokens without the intermediary broker. some crypto tokens are securities and some are not classified as securities. it depends on what is being traded. the ma

the r block chain based occurring outside an exchange and it is hard from cftc to regulate that. they regulate exchanges and expect exchanges to regulate activities that occurs. this is a common regulatory structure. you can see it in anti-money laundering and know your customer requirements. the regulators do not impose all of those. they impose those on financial institutions and financial institutions impose them on customers if you do not need institutions anymore and it is customers interacting directly, that can cause regulars to be worried. because they have lost authority and are depending on the platform. my fear here is that if folks come in and say, for an effective marketplace of ideas we need this comprehensive regulatory structure that facebook and twitter and so forth is imposing on all content, then the next generation could simply skip over the need for that sort of platform but would be perceived as unlawful because you later switch feel the content was not sufficiently regulated. that is the backdrop that should cause caution on the part of regulators. if i cou

the cftc which another agency and i mentioned does take the position that certain products involving cryptocurrencies qualify as derivatives and thus are regulated as derivatives. i got to be honest there's a lot of open questions in this area, and industry is very fast-moving. you've got entrepreneurs who are thinking about financial technology, thinking about democratizing financial technology. that's a very powerful movement in this country and around the world. the real challenge for regulators is keeping up with that innovation because the things that the sec might be looking at today are innovations that happened six months ago or a year ago, staying in front of that is what i think is very much the challenge for our government now. >> host: sam sabin, time for two were questions. >> awesome. i'm going to keep the ball rolling with crypto currency. the reason we're asking is so many companies into paying a ransom in bitcoin or another crypto currency. we briefly mention that the fbi was able to seize maybe half of the $4.4 million colonial paid to cyber criminals in ransom. by

cftc data, you can see it shows dollar shorts have been wiped out in this market. we have nearly seen all of those shorts being covered. what does the positioning on the greenback tell you? will we see a stronger dollar from here on out? martin: the stronger dollar literally is the reflection of this divergent move we are seeing in central banks. you will also see, for instance, very low interest rates around the world. roughly the u.s. is going to low 1% levels. that would normally force a lot of investors into higher-yielding products. part of that, if we look around the world, is if we can see those in america. america may start attracting more of the flow. if we get risk factors on supply shots, we get risk factors on divergent monetary policy, risk factors on the delta variant, trouble from unvaccinated people, and this will be all factors that are positive for the u.s. dollar. dani: martin, so wonderful to catch up with you. that is martin alone. -- martin malone. coming up, we will turn to germany as angela merkel tours flooded areas and apologizes over a ga

run one of these agencies, there is a turf conflict between the fed and the occ or the fcc and the cftc. everybody is trying to grab turf. because of that it's hard to get clarity. if you look at the united kingdom, where there is a single regulator for the entire financial system, it's easier to get clarity. overhear you have competition among agencies. there is overlap in their jurisdiction, so it's tough to deal with. we are not as far behind as people might think. at the end of the last administration, all of the major regulators got together through the president's working group on financial markets and provided clarity on certain crypto assets like stable coins. that's an example of how our regulatory system can adapt if they all work together. caroline: binance u.s. ceo brian brooks earlier. the solar industry has spent decades getting electricity directly from the sun. now it's working on making panels more powerful and transparent. >> today we are at -- electric power research institute for a peek at one of many innovations companies are working to to take -- working to take so

run one of these agencies, there is a turf conflict between the fed and the occ or the fcc and the cftc. everybody is trying to grab turf. because of that it's hard to get clarity. if you look at the united kingdom, where there is a single regulator for the entire financial system, it's easier to get clarity. overhear you have competition among agencies. there is overlap in their jurisdiction, so it's tough to deal with. we are not as far behind as people might think. at the end of the last administration, all of the major regulators got together through the president's working group on financial markets and provided clarity on certain crypto assets like stable coins. that's an example of how our regulatory system can adapt if they all work together. caroline: binance u.s. ceo brian brooks earlier. the solar industry has spent decades getting electricity directly from the sun. now it's working on making panels more powerful and transparent. bloomberg reports from south korea. >> today we are at an electric power research institute for a peek at one of many innovations companies are work

i want to bring in former cftc chairman, christopher carlo. thanks for coming on. talk to you about coinbase. before we get to coinbase itself, crypto around it has been wild ride. 64,000 in april. down to 34 how in may. mostly sideways. challenges are monumental. fiat currency and non-stop negative campaign out of wall street. how do crypto crip crip at the currencies. >> great to join you and follow my old friend larry kudlow. if your followers understand one thing about bitcoin, it is this. bitcoin is fixed supply commodity. when you have a fixed supply commodity, changes in demand pat can only reflect, can only result in one thing, that is dramatic changes in price. it is not possible to dramatically change the supply so price is what is affected. right now we have got two factors going on causing a dramatic demand change. first one as you mentioned, china, which was the forum for so much of crypto activity around crypto mine something being considering down hard on anything to do with crypto with mining. that is not reflection on crypto. this it is a reflectio

the sec and cftc have set as much in court cases and regulatory actions. so i think what you were trying to get at is one of the best arguments for a central bank digital currency is that stable coins could be rendered on the very -- rendered unnecessary. but legally speaking, stable coins and virtual currencies are not synonymous because stable coins don't increase in value generally, and are used as substitute payment instruments, whereas bitcoin, ethereum, and other virtual currencies are investment assets. there's research at fidelity, deutsche bank, and credit suisse , among others, that call bitcoin an emerging store of value. goldman sachs has said the same about ethereum. so my question is, because stable coins and the central bank digital currency are more synonymous with the dollar as an instrument of payment, and bitcoin, ethereum, and other virtual assets are more and investment commodity like gold, when you spoke to the financial services committee in the house yesterday, did you mean that stable coin would be unnecessary if we had a central b

a particular area of concern, a speech by one of the cftc commissioners getting into the weeds to answer your question about there are blocked chain based derivatives trades occurring outside of an exchange and it is hard to regulate that because they regulate exchanges and then expect the exchanges to regulate the activity that occurs and this is a common regulatory structure. you can see it in anti-money laundering. regulators don't impose all those things, they impose them on financial institutions and then financial institutions impose a lot of customers. if you don't need the institution anymore, it is just customers interacting directly, that can cause regulators to worry because they are depending on the platform. my fear is if folks come in and say we are in an effective marketplace of ideas, we need this very comprehensive regulatory structure that facebook, twitter and so forth is imposing on all the content in the next generation is simply going to skip over the need for that sort of platform that would then be perceived as unlawful because the regulators would feel the conten

there's unrest at the cftc in the last few months regarding a potential whistleblower payoff to a former deutsche bank executive. the firm that owns several retail brands including jc penney and forever 21 is planning to go public according to documents filed with the securities and exchange commission. other well-known names under the authentic brands group include brooks brothers and sports illustrated. this filing does not set an offering price but the company says it plans to sell $100 million worth of stock. and then air travel has come back, taking a toll on some airlines. cancellations and delays due to weather or staffing shortages hitting american and southwest airlines. while the weather can't be controlled, both airlines are offering incentives such as double pay to try to get people to come back to work there. the two are also the fastest to add flights back as demand is increasing. the stocks are both down. we're sealing a broader selloff in the broader markets, as you can see american and southwest in the red. then there is this, the tampa bay lightning striking twice, winn

block chain based derivatives trades that are occurring outside of an exchange, and it is hard for the cftc to regulate that because they regulate exchanges and they expect the exchanges to regulate the activity that occurs. i think this is common for the structure. you can see it in money laundering and regulators impose all of those things but on financial institutions, and then on customers. if you do not move the institution anymore, and it is just customers interacting directly, that can cause them to be worried because a lot of them depend on the platform. my fear here is that folks come in and say we need this regulatory, comprehensive structure that facebook, twitter, so forth, are imposing the content and then the next generation could skip over the need for that platform and then be perceived as unlawful because regulators would feel like the content was not sufficiently regulated. that is the backdrop that i think could or should cause some -- should cause some caution. repressor, if could ask you a question, not necessary in the social media context but financial relation, some

these agencies, there is a little bit of inherent turf conflict between the fed and the fcc and the cftc. everyone is trying to grab a little bit of turf so it is hard to get clarity. if you look at the united kingdom, where there is basically a single regulator for the system, it is easier to get clarity. you have competition among agencies, overlap in their jurisdiction, and at some level, it is tough to deal with. we are not as far behind as people might think. at the end of the last administration, all of the major regulators got together through the president's working group on financial markets and started providing clarity on certain crypto assets and that is an example of how our regulatory system can adapt if all regulators work together. shery: brian brooks speaking to sonali basak and romaine bostick. our guest joins us to look ahead to samsung's results and the outlook for chips. this is bloomberg. ♪ haidi: we have breaking, samsung's second-quarter preliminary earnings are a. we are seeing operating profit for the second quarter of 12.5 trillion won. that beat estimates of

tether is about 60 -- what, about $60 billion in stable coin, and about tim basset who used to run the cftc said look, these are the guys they're worried about. and well, criminal probe, they're much bigger than people realize. >> implications for commercial paper and a few other things as well. >> i couldn't find anyone in this commercial paper market who actually does business with them where is that commercial paper, and is it chinese commercial paper which historically has been difficult to rate again, if you watched deirdre, this is some day because if we didn't hear the bitcoin noise and news about amazon, somewhat unsourced, then bitcoin would be down very big. instead because of maybe a short squeeze or something, this tether news has not percolated enough >> do you believe that surviving 30k a couple times now has create created a firm floor >> yes. >> you do is this. >> >>. >> e themethereum is breaking dn too. i can't think of another company that would make you want to cover your short in bitcoin or crypto than amazon i mean, who? like walmart, walmart, they're going to take bit

. >> the last question my colleagues have heard me talk before the cftc issued this report that pointed out among other things that there is a huge concentration of exposure in houston it's like 25% of all of the portfolios in new york and miami that are exposed to massive losses and how we should be thinking about that. that is outside of your agency but as the frequency of these increase, the disaster recovery program has become increasingly important and caused 306 billion in damages in the united states. i guess i don't need to tell you that program has never been authorized so you have to come back for a notice on the appropriation. how would permanent authorization of the program help you do your job and better help communities recover after a disaster? it would be tremendous. >> thank you. i have no further questions and i will yield back. >> now recognized for five minutes. >> an overwhelming amount of funding to address homelessness goes to the continuum of care boards and those are responsible for providing a holistic approach to end homelessness including housing, soup kitche