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00:00> > WE ARE LIVE FROM BLOOMBERG'S WORLD HEADQUARTERS IN NEW YORK CITY. I AM MATT MILLER. > > I AM KAILEY LEINZ, WHATCOM TO "BLOOMBERG CRYPTO," A LOOK AT WHAT IS SHAPING THE WORLD OF DECENTRALIZED FINANCE. > > HE SOUNDS OFF ON SAM BANKMAN-FRIED, DETAILS ON THE WORLD -- WAR OF WORDS ERECTING AMONG THE CRYPTO TITANS. > > ARE INSTITUTIONAL INVESTORS SHYING AWAY FROM CRYPTO ASSETS? > > ONE URGENT QUESTION KEEPS RESURFACING, WHO SHOULD REGULATE THE CRYPTO INDUSTRY? CFTC COMMISSIONER CAROLINE JOINS US IN STUDIO IN A FEW MOMENTS. > > LOOKING FORWARD TO WHAT IS HAPPENING AHEAD, LIST GET A QUICK SNAPSHOT OF WHAT IS HAPPENING WITH THE MARKET. BITCOIN IS HIGHER FOR A 13TH DAY IN A ROW COMIC CAPPING ITS LONGEST -- CAPPING ITS LARGEST -- LONGEST WINNING STREAK. IT IS JUST ABOVE $21,000. ETHER IS UNCHANGED ON THE DAY JUST SHY OF 1600, WE SEE THE MOVES IS THE CRYPTO RELATED EQUITIES. COINBASE ON A SIX-DAY WINNING STREAK, AND BIT DIGITAL UP 10%, THE STOCK HAS MORE THAN DOUBLED IN 2023 AND IT IS ONLY JANUARY 17. A REALLY REMARKABLE RUN FOR THAT ONE. > > A MASSIVE RUN FOR CRYPTO MINORS, GETTING AT THE GLOBAL DIGITAL ASSETS MINOR INDEX, RISEN 70% IN THE MONTH OF JANUARY. THAT COMES ALONG WITH A REBOUND IN THE PRICE OF BITCOIN. THAT IS UP 30% ITSELF. THE REASON IS THE GAIN IN THE MARGIN THAT MINERS CAN MAKE. IT IS ESTIMATED THAT MINTERS CAN MAKE -- MINERS CAN MAKE 21% MORE THAN BITCOIN AND THEN THE RECENT RUN. > > THIS IS INJECTING SOME OPTIMISM INTO A MARKET SEEKING TO FIND SOME DECENT NEWS. THERE IS STILL BEEF AMONG CRYPTO TITANS. CHANEL HE IS JOINING US, YOU ROTATE GREAT PROFILE LAST WEEK. THE QUOTE IS THAT HE WOULD LIKE TO PUNCH BOTH SAM BATEMAN FREED AND BARRY IN THE -- SAM BATEMAN FREED AND BARRY SEVERED IN THE JAW. > > ANOTHER PART WAS HOW HIS DAUGHTER WOULD NOT APPROVE OF SOME LIKE THAT ANYMORE. TOXIC MASCULINITY, IT IS THE WRESTLING VIBE, HE IS GEARING UP TO FIGHT AGAIN. THE INTERESTING THING ABOUT MIKE IN THIS ERA IS THAT THERE IS A LOT OF THINGS OVERHANGING THE CRYPTO INDUSTRY. FTX, THE LUNA DEBACLE, THE BROADER MACRO STORY. YOU TRIBUTES TO WHAT DESK HE GIVES A TIMELINE FOR HOW LONG IT WILL TAKE FOR GALAXY TO WORK ITSELF THROUGH THIS, AND HE IS MADE TOUGH DECISIONS IN TERMS OF REORGANIZING GALAXY TO MEET THIS NEW MARKET OPPORTUNITY. HE IS TRYING TO EMERGE AS THE FACE OF THIS INDUSTRY. REALLY HAVING A LOT OF FAITH STILL IN BITCOIN. > > THAT IS THE BOTTOM LINE, HE IS COUNTING ON A COMEBACK. HE IS NOT CUTTING HIS LOSSES AND RUNNING. HE IS HERE TO STAY. HE IS OPTIMISTIC ABOUT THE FUTURE OF DIGITAL ASSETS. > > SOMETHING INTERESTING IS THE CULTURE SHIFT YOU SEE, NOT JUST GALAXY, BUT THE INDUSTRY. THEY SAY THE INSTITUTIONS ARE POISED TO WIN. THE FIDELITY AND GOLDMAN SACHS'S. HE SAID OF HIS OFFICES JUST A STONES THROW AWAY FROM GOLDMAN SACHS. LOTS OF TRADING DESKS TO OPEN UP AS HE BUYS ASSETS OUT OF BANKRUPTCY. YOU WONDER WHAT KIND OF TALENT THAT STARTS TO NURTURE AND CREATE IN THE INDUSTRY. A LOT OF PEOPLE HAVE LEFT A LOT OF JOBS IN CRYPTO. GALAXY CUT 14% OF ITS HEADCOUNT FOR BUYING NEW ASSETS AND FOCUSING ON INSTITUTIONS THIS YEAR. WHAT DOES IT LOOK LIKE, HAS YET TO BE DRAWN OUT BECAUSE WE ARE LIMPING TO THESE TROUBLES. > > EVERYONE SHOULD BE CHECKING AT ON THE BLOOMBERG TERMINAL OR BLOOMBERG.COM. DESPITE THE FINGER-POINTING AND UNCERTAINTY HANGING OVER THE INDUSTRY THERE IS STILL A LOT OF INTEREST FROM INSTITUTIONAL INVESTORS IN DIGITAL ASSETS. THAT IS ACCORDING TO DREW FOREMAN, HE JOINS US. WE HAVE HAD THIS BOUNCE BACK IN BITCOIN UP TO OVER 21,000 FROM THE 16,000 LEVEL IT HELD OUT AT AFTER FTX. WE ARE AT PRE-FTX LEVELS. ARE INSTITUTIONAL INVESTORS PART OF WHAT IS HOLDING THE PRICE STEADY AND MOVING IN HIGHER? GUEST: ABSOLUTELY. 2023 WILL BE THE YEAR YOU SEE THE LARGEST INSTITUTIONS COMING TO THIS SPACE. THAT WAS NOT THE CASE IN THE PREVIOUS ALL MARKETS -- BULL MARKETS. WE ARE HAVING CONVERSATIONS WITH ASSET MANAGERS AND HEDGE FUNDS. THEY ARE ALL BUILDING AND CONTINUING TO BUILD EVEN TO THE LAST QUARTER OF LAST YEAR THE INFRASTRUCTURE TO DEPLOY ASSETS IN THIS SPACE. THE NEXT LIKABLE BE INSTITUTIONAL LED. > > HOW DO YOU THINK OF THE COMPETITIVE LANDSCAPE OF INSTITUTIONAL FINANCIAL PLAYERS EXPANDING INTO CRYPTO VERSUS CRYPTO NATIVE INSTITUTIONS? HAS THAT THE GNOMIC SHIFTED GIVEN THE IMPLOSION OF THE -- DYNAMIC IT SHIFTED GIVEN THE IMPLOSION OF CRYPTO PLAYERS IN THE CRYPTO NATIVE SPEAR? -- SPHERE? > > THEY WILL LEAN INTO THE SPACE, WHAT THE CUSTOMERS ASK FOR IS AN INFRASTRUCTURE BILL FOR THE INSTITUTIONAL MINDSET. AT THE LANDSCAPE A LOT OF SOLUTIONS ARE RETAIL BASED. THEY HAVE NOT DONE AND INSTITUTIONAL ONLY SOLUTION. WHAT WE SEE NOW, IS TRADITIONAL FINANCE PLAYERS WOULD JOIN THE DOLLARS OF EQUITIES, BONDS, CREDITS ARE LOOKING FOR THAT SAME KIND OF WHITE GLOVE SERVICE IN THE INFRASTRUCTURE OF CRYPTO. THAT IS BECOMING THE CASE WITH INSTITUTIONS LIKE COWEN DIGITAL. > > WILL BE ARE SEEING IN THE CRYPTO SPACE, IS LAYOFFS AND COST-CUTTING. THINKING DIFFERENTLY ABOUT GROWTH GOING FORWARD. WHAT ARE YOU DOING AT COWEN DIGITAL WITH YOUR HEADCOUNT? GUEST: WE ARE BUILDING. WE CONTINUE TO HIRE. WE JUST HIRED THE HEAD OF EUROPEAN OPERATIONS IN LONDON. WE ARE BUILDING METHODICALLY. BULL MARKETS ARE VERY FORGIVING. YOU SEE A LOT OF COMPANIES OVER HIGHER. YOU SEE THESE PRESS RELEASES WHERE THEY HIRE 100 PEOPLE FOR DIGITAL ASSETS. . . THAT IS NOT WHAT WE ARE DOING WE BUILT METHODICALLY. UNFORTUNATELY THERE IS A LOT OF MAJOR TALENT THAT WENT FROM TRADITIONAL FINANCE TO CRYPTO ASSETS, AND IT IS A GREAT ENVIRONMENT TO BE HIRING AND BUILDING OF THAT IS WHAT WE ARE DOING. > > WE ARE ALWAYS FOCUSED ON REGULATION. THERE ARE ALWAYS OPEN QUESTIONS THERE. WE ARE ABOUT TO SPEAK TO THE CFTC COMMISSIONER CAROLINE. WHAT IS ONE QUESTION YOU HAVE FOR REGULATORS IN GENERAL DIGITAL ASSETS? GUEST: WE WELCOME REGULATION. MY QUESTION IS TO ASK FOR CLARITY. WHICH REGULATORY BODY AND SHOULD WE BE LOOKING TO GOING FORWARD? WE HAVE CONVERSATIONS WITH ADDITION STATES -- WITH A DIFFERENT STATES AND NATIONAL UNITS AND REGULATION IS WELCOME. IT WILL BRING MORE CONFIDENCE TO SPACE. THE MORE FRONT FOOTED INSTITUTIONS CAN BE AS WELL AS REGULARS AND DISCUSSIONS WITH -- REGULAR LEADERS AND DISCUSSION OF AN INSTITUTION WILL BRING MORE -- > > IN MODERN DAY BANKING THERE ARE A NUMBER OF REGULATORY BODIES YOU HAVE TO COMMUNICATE AND WORK. CAN IT BE THE SAME IN DIGITAL ASSETS? CAN THE CFTC AND S.E.C. BOTH REGULATE CRYPTO TOGETHER? GUEST: ABSOLUTELY. ANY FRAMEWORK WITH A NUMBER OF REGULATORY BODIES WOULD INCREASE THE OPTIONS IN THE SPACE. WE LOOK FORWARD TO WORKING WITH ALL THE REGULATORS. > > A QUESTION WE HAVE ASKED OVER THE LAST SEVERAL MONTHS IS WHETHER OR NOT REGULATION WOULD HAVE ENTIRELY PREVENTED AN EPISODE LIKE THE IMPLOSION OF FTX. IF IT WAS JUST A BAD ACTOR ACTING BADLY WITHIN EXISTING REGULATION. ON THAT NOTE IT RAISES CUSTODY OF THE DIGITAL ASSETS. IF EVERYTHING TO LIVING EXCHANGE OR YOU SHOULD HAVE CONTROL OVER IT. HOW ARE YOU THINKING OF THE ROLE CUSTODIANS PLAY OF IMPORT AND HOW DOES THAT FIT INTO WHAT YOU DO? GUEST: IT HAS BEEN OUR BELIEF FROM THE BE GETTING THAT MARKET FUNCTIONS, TRADING, LENDING, SHORTING, AND DERIVATIVES SHOULD BE SEPARATED FROM THE CUSTODY OF ASSETS. YOU SEE THIS IN ASSET CLASSES OF EQUITIES AND FIXED INCOMES. IF YOU LOOK AT EXCHANGE MODEL IN CRYPTO I THINK THEY ARE DOING TOO MUCH. IF YOU WENT TO A TRILLION DOLLAR ASSET MANAGER IN EQUITIES YOU CAN CUSTOM -- TRADE IN THE NEW YORK TRUCK -- STOCK EXCHANGE APP, THE WORKFLOW WOULD BE AN EXCESS OF. GRAVITATING -- WOULD BE ACCEPTABLE. GRAVITATING TO A MODEL OF SEGREGATED REGULATED CUSTODY WHERE FUNCTIONS ARE SEPARATED YOU WILL SEE A NUMBER OF INSTITUTIONAL PLAYERS GO INTO THAT SPACE TO FILL THOSE NEEDS. > > THANK YOU VERY MUCH, DREW HEAD OF COWEN DIGITAL AND WHAT YOU WANT TO SEE IN TERMS OF REGULATION. CFTC CAROLINE PHAM JOINS US IN THE STUDIO. > > WE WILL INTERVIEW FROM DAVOS. HE SAYS HE REMAINS CAUTIOUS ON CRYPTO. > > AND NEEDS TO BE REGULATED A LOT. I FAVOR STRONG GALATIAN. THAT -- STRONG REGULATION. THAT CANNOT BE DONE WITH ONE COUNTRY. IF IT IS ILLEGAL IN RUSSIA YOU CAN OWN IT HERE AND POTENTIALLY RUSSIA'S NOT THE BEST EXAMPLE. I WILL PROBABLY REMAIN ILLEGAL IN NUMBER OF COUNTRIES WHERE THE GOVERNMENT DOES NOT -- LEGAL AND NUMBER OF COUNTRIES WHERE THE GOVERNMENT DOES NOT COMPLETELY CONTROL THE COUNTRY. ♪ > > AT THE MOMENT THE CRYPTO MARKET IN THE U.S. IS ALMOST EXCLUSIVELY A CRYPTO COMMODITY MARKET. ALL OF THIS BECAUSE THERE IS A LACK OF REGULATORY CLARITY AROUND THE SECURITY SIDE HAS BUILT OUR MARKETS AROUND CRYPTO COMMODITIES. I THINK CONGRESS WILL STEP UP AND PROVIDE LEGISLATIVE AUTHORITY FOR CFTC TO LEGISLATE AT THE -- REGULAR AT THE NATIONAL LEVEL. > > DISCUSSING THE REGULATORY DEBATE OVER CRYPTO WITH BLOOMBERG AT THE DAVOS. JOINING US IS CFTC COMMISSIONER CAROLINE PHAM. HE WAS TALKING ABOUT A CERTAIN DEGREE OF CONFIDENCE THAT CONGRESS WILL SET THE RULES OF THE ROAD AND A LOT OF POWER BE GIVEN TO THE CFTC. WHAT IS YOUR DEGREE OF CONFIDENCE THAT WILL HAPPEN AND HAPPEN ANYTIME SOON? WE HAVE BEEN WAITING FOR A WHILE. GUEST: THANK YOU SO MUCH FOR HAVING ME. IT IS GREAT TO BE BACK ON BLOOMBERG. THERE ARE MANY OTHERS MAKING A LIVING PREDICTING WILL HAPPEN IN WASHINGTON. I WILL LEAVE THAT TO THE EXPERTS. > > ARE YOU HAVING CONVERSATIONS ON THIS? GUEST: THAT IS THE PREROGATIVE OF THE GERMAN. I AM HERE TO DO IT -- CHAIRMAN. I AM HERE TO USE OUR EXISTING AUTHORITIES. > > WHEN YOU LOOK AT THE FTX DEBACLE, SHE WAS ASKING IF IT COULD BE PREVENTED BY REGULATION. ESPECIALLY CONSIDERING THE FACT THAT THEY WERE IN THE BAHAMAS NOT DEALING WITH U.S. CONSUMERS. WHAT IS YOUR VIEW? GUEST: THE FCC COMMISSIONER AND I CALLED FOR PUBLIC ROUNDTABLES IN MAY AND JUNE TO EXAMINE HAPPENED WITH THE CRYPTO CRASH LAST SUMMER. MY QUESTION IS, IF WE HAD THAT KIND OF PUBLIC INQUIRY COULD WE HAVE UNCOVERED THE IN CONNECTED -- INTERCONNECTEDNESS AND THE RISKS THAT HAVE BEEN BUILT UP? THAT IS WHY WENT FORWARD WITH MY PROPOSALS, FOR THE FIRST EVER OFFICE OF RETAIL ADVOCATE AND GOING OUT TO TALKING TO INTERNATIONAL POLICYMAKERS ABOUT WHAT KIND OF SINS WOULD HAVE ANY GLOBAL LEVEL. HOW CAN WE CLOSE GAPS? I HAVE HAD 75 MEETINGS AND THERE IS ADVANCED DISCUSSIONS HAPPENING OUTSIDE OF THE UNITED STATES ON THIS? > > WHAT YOU GATHER FROM THOSE MEETINGS? HOW DOES INDUSTRY RIGHT NOW? WHEN YOU LOOK AT THE CURRENT FEUDS YOU HAVE TO BE CONCERNED. GUEST: I HAVE TO SAY IT IS A CONCERN. THIS IS WHAT ALL REGULATORS SHOULD BE THINKING ABOUT. HOW DO WE USE EXISTING AUTHORITIES PROVIDE CLARITY RIGHT NOW TO IDENTIFY WHAT IS A CRYPTO INDUSTRY -- INSTRUMENT? IT SHOULD BE HELD TO THE SAME STANDARDS AS OTHER INSTRUMENTS. WHAT ARE THE APPROPRIATE REGULATORY AND LEGAL FRAMEWORKS THAT APPLY THAT? THE BLOCKCHAIN TECHNOLOGY AND THE USE CASES FOR THAT, I HAVE TAKEN A HANDS-ON APPROACH TO UNDERSTANDING. > > YOU TALK ABOUT WHAT YOU -- WHAT AUTHORITIES YOU HAVE AND DO NOT NEED TO BE GRANTED TO YOU. HAVE YOU FULLY UTILIZED THOSE? ARE THERE LEVERS LEFT THE POLE? -- PULL? GUEST: WE HAVE TO ALWAYS BE THINKING ABOUT WHAT WE NEED TO DO AND NOT BE SATISFIED WITH THE STATUS QUO. I AM HOPEFUL WE WILL SEE THE CLARITY AND THE UNITED STATES PURSUANT TO THE PRESIDENT'S EXECUTIVE ORDER AND SOME OF THE REPORTS I CAME OUT THERE. THAT IS WHY THROUGH MY GLOBAL ADVISORY COMMITTEE AND INTERNATIONAL ENGAGEMENT I'M HOPING WE CAN BUILD UPON MY 10 FUNDAMENTALS FOR RESPONSE WILL DIGITAL ASSETS AND CREATE INDUSTRY STANDARDS AND BEST PRACTICES PEOPLE CAN START TO DO TODAY. NOT WAIT ANY LONGER. > > THERE IS A SCHOOL THOUGHT AMONG THE SKEPTICS, WE ARE SPOKEN TO SOME OF THEM ON THIS PROGRAM THAT ESSENTIALLY SAY YOU SHOULD LET CRYPTO BURN. YOU SHOULD NOT GRANT IT LEGITIMACY BY GRANTING REGULATORY CLARITY AND SETTING GUARDRAILS. WHAT IS YOUR RESPONSE? GUEST: THIS IS AN IMPORTANT POINT, BACK IN MAY I SAID THESE JUNK TOKENS ARE NOT -- ARE LIKE A LOTTERY TICKET THEY ARE NOT INVESTMENTS. THAT IS IN POINT IS DEGREE. WHAT IS A CRYPTO FINANCIAL INSTRUMENT? IN THE WORLD OF CRYPTO ASSETS THERE ARE SOME THAT ARE BANKING PRODUCTS AND THEY SHOULD BE SUBJECT TO THOSE REGULATORY REMARKS. SOME ARE USED FOR CAPITAL RAISING. THOSE ARE SECURITIES UNDER THE OVERSIGHT OF THE SEC AND OTHER CAP -- REGULATORS AROUND THE WORLD. THERE ARE A BUNCH THAT LOOK LIKE DERIVATIVES INCLUDING THE ENFORCEMENT ACTION THAT IS HAPPENING, WITH THE MARKET WHEN IT GALATIAN AND FRAUD ON A DECENTRALIZED DIGITAL ASSET -- DECENTRALIZED DIGITAL ASSET EXCHANGE. WE HAVE A CLEAR REGULATORY FRAMEWORK BROUGHT ON BY DODD-FRANK AND THOSE REFORMS. THEN YOU HAVE THE CRYPTO NONFINANCIAL ACTIVITIES. THAT IS WHERE THERE IS SOME INTERESTING DISCUSSIONS TO BE HAD. THESE ARE DISCUSSIONS I'M HAVING AROUND THE WORLD ON NFTS. WEB THREE. . UTILITY TOKENS. WE DO NOT HAVE A DEFINITION OF UTILITY TOKENS IN THE NIGHT STATE. THAT IS SEPARATE AND APART FROM BLOCKCHAIN TECHNOLOGIES TO MODERNIZE THE SYSTEM. THERE ARE EXPERIMENTS HAPPENING AROUND THE WORLD BY CENTRAL BANKS, BIG BANKS, AND OTHERS LOOKING AT THE INFO STRUCTURE OF THE FINANCIAL SYSTEM. HOW DO WE MAKE IT MORE EFFICIENT? HOW DO WE MAKE IT MORE COST-EFFECTIVE? > > IT DOES SEEM THE U.S. IS FALLING BEHIND OTHER NATIONS. CHINA IS OUT FRONT IN TERMS OF DIGITAL COURTESIES. THE ECB HAS USED THE BLOCKCHAIN TO ISSUE BONDS. CANADA HAS BITCOIN SPOT ETF'S. HOW CAN THE U.S. REGAIN LEADERSHIP? DO YOU WORK WITH THOSE OTHER PLAYERS OR DO YOU TELL YOUR OWN ROAD? GUEST: I BELIEVE IN AMERICAN INNOVATION AND THE SHIP I ABSOLUTELY AGREE THE UNITED STATES CANNOT ALL BEHIND -- LEADERSHIP AND ABSOLUTE AGREE THE NIGHT STATES CANNOT FALL BEHIND THE REST OF THE WORLD. WE -- UNITED STATES CANNOT FALL BEHIND THE REST OF THE WORLD. FIRST AND FOREMOST WE MUST ASSURE THAT CRYPTO ASSET ACTIVITY IS BROUGHT WITHIN THE REGULATORY PERIMETER. WE HAVE STRONG GUARDRAILS FOR THE PUBLIC. THEN WE HAVE TO THINK ABOUT HOW WE USE THE INNOVATIONS. TOKEN ICING SECURITY MARKETS. THOSE ARE ALL SUBJECT IN THE EU. HOW DO WE LOOK AT THAT? HOW DO WE LOOK AT THESE DEFI PROTOCOL CENTRAL BANKS ARE EXPERIMENT AND WITH THE FX MARKETS AND BRINGING EFFICIENCIES THERE? THOSE ARE THINGS I HOPE WE FOCUS ON IN THE UNITED STATES. > > YOU MENTIONED THE COMMISSIONER AT THE CFTC WITH YOU, GARY GENSLER HAS BEEN A FOCUS FOR THE INDUSTRY. DO YOU WORK TOGETHER WITH THE FTC -- THE SEC? GUEST: YES. THEY HAD A LONG HISTORY OF WORKING TOGETHER EVER SINCE THE CFTC HAS BEEN FOUNDED AND THE PREDECESSORS. THERE HAVE BEEN OTHER AREAS WHERE THERE HAVE BEEN QUESTIONS OF DRAWING BOUNDARIES AND LINES BETWEEN DIFFERENT JURISDICTIONS AND FOR PRODUCTS HAVE MIXED DARK CRITICS. SECURITIES FUTURES AND TO DERIVATIVES AFTER DODD-FRANK AND THE REFORMS. OTHER THINGS AROUND MIXED SWAPS, FOR EXAMPLE. THERE IS A LONG HISTORY AND TRADITION. WE BRING MANY PARALLEL ENFORCEMENT ACTIONS. THAT IS AN IMPORTANT PART OF OUR JOB AS WELL. > > WE KNOW FOR SOME TIME UP UNTIL RECENTLY SANDBAGGING FREE, -- SAM BACON READ -- PUSHING FOR MORE REGULATION IN THIS INDUSTRY, WHO FEELS THAT VOID? WHO WERE YOU TALKING WITH MOST VOCAL ENOUGH? GUEST: THIS GOES BACK TO SOME OF THE CONVERSATIONS AND OTHER GUESTS YOU HAVE HAD ON THE SHOW. WHAT PEOPLE LOOK AT, TRADITIONAL INITIAL INSTITUTIONS AND INSTITUTIONAL INVESTORS. THEY ARE LOOKING AT HOW DO WE USE THIS TECHNOLOGY TO MODERNIZE AND UPGRADE OUR CURRENT MARKET INFO STRUCTURE -- INFRASTRUCTURE? THERE ARE BENEFITS THAT NEED TO BE EXPLORED HAVE NOTHING DO WITH JUNK TOKENS. THEY ARE DONE WITH REGULATED FIRMS, FINANCIAL RESOURCES, RISK MANAGEMENT, SO ONE AND SO FORTH. THAT IS WHERE THE CONVERSATION IS WITH THE REST OF THE WORLD. WITHOUT REGULATED SECTOR. THAT IS THE CONVERSATION WE NEED TO CONTINUE HAVING. > > THANK YOU FOR BEING HERE AND HAVING A CONVERSATION WITH US IN OUR STUDIOS IN YORK. WE APPRECIATE YOUR TIME. FOR MORE OF THE CONVERSATION, BE SURE TO CHECK OUT OUR "BLOOMBERG CRYPTO," PODCAST. DIVING DEEPER THAN THE DAILY BUZZ TO ASK FOR THE STORIES AND PEOPLE SHAPING THE EVER EVOLVING INTO THE LANDSCAPE. LOOK FOR THAT EVERYDAY WHERE BEGIN YOUR PODCASTS -- WHEREVER > > "BLOOMBERG CRYPTO THIS IS "BLOOMBERG CRYPTO." I AM KAILEY LEINZ WITH MATT MILLER. NOW TO SOME CRYPTO STORIES THAT CAUGHT OUR ATTENTION THIS WEEK. CRYPTO IS MAKING A COMEBACK IN ONE CORNER OF THE MARKET. FUNDS FOCUSED ON DIGITAL ASSETS IS LEADING EVERY ETF IN 2023. THE TOP THREE PERFORMING ETF'S ARE ALL TIED TO CRYPTO. MANY OF THE FUNDS WERE AMONG 2022'S LOSERS. -- BIGGEST LOSERS. > > SILVER GATE CAPITAL HAS REPORTED A $1 BILLION LOSS, A DRAMATIC PAUSE -- DRAWDOWN IN LOSSES AFTER THE COLLAPSE OF SAM BANKMAN-FRIED'S FTX. THEY SAY AS DO WITH ASSET SALES DUE TO THE UNRAVELING OF THE DON'T -- THE CRYPTO EXCHANGE. THEY ARE ELIMINATING A PORTION OF THEIR CRYPTO PER FOLIO. > > THE CRYPTO EXCHANGE PRO-FORM BACK BY FIDELITY IS CUTTING BACK BY A THIRD IN RESPONSE TO MICAH CONDITIONS. -- MARKET CONDITIONS. > > THEY JOIN A STRING OF OTHER FIRMS THAT ARE TIGHTENING BELTS, THE CUTS IN EMPLOYMENT THEY HAVE HAD TO MAKE. IT IS INTERESTING TALKING TO DREW, THAT THEY ARE STILL GROWING. > > THEY ARE STILL GROWING IN THIS VOLATILITY WILL PROVE VERY DIFFICULT FOR SMALL AND MEDIUM-SIZE BUSINESSES THAT HIRED AS MANY PEOPLE AS THEY COULD IN 2021 AND HAD TO REDUCE HEADCOUNT IN 2022. YOU HAVE THE PRICES COMING BACK UP AND TRADING ACTIVITY JUMPING AS WELL. MINERS HAVE DONE SO WELL IN TERMS OF STOCK PERFORMANCE. YOU ARE WONDERING IF THEY WILL TURN AROUND AND HIRE PEOPLE AGAIN. > > AND HOW DIFFICULT IT MAY HAVE BEEN, ESPECIALLY IF IT IS PEOPLE ESCAPING TRADITIONAL FINANCE TO GO INTO CRYPTO. > > ONCE BITTEN, TWICE SHY. > > ON THE TERMS OF PRICING, CAN WE TALK ABOUT A 14 DAY WINNING STREAK IN TERMS OF BITCOIN? IT FEELS LIKE WE GOT A REAL BREAKOUT TO THE UPSIDE. -- > > WE ARE BACK TO WHERE WE ARE BEFORE THE COLLAPSE OF FTX. I THINK THE NOVEMBER FIT OR -- 5TH PRICE WAS 21 3D FIVE, THEN IT ALL CAME CRASHING DOWN -- $21 355. IT ALL CAME CRASHING DOWN. > > THAT WRAPS IT UP FOR THIS WEEK, WE WILL BE SPEAKING WITH

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Bloomberg Crypto Full Show (01/17/2023)

"Bloomberg Crypto" covers the people, transactions, and technology shaping the world of decentralized finance. Drew Forman, Head of Cowen Digital, says 2023 will be the year we see the largest institutions coming into the crypto space. Caroline Pham, CFTC Commissioner, says she is hopeful we will see regulatory clarity in crypto in the US. (Source: Bloomberg)

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