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MARIA: WELCOME BACK.
CRACKDOWN FROM YOU COMMUNIST
PARTY CONTINUED THIS WEEK THE
RISKS OF EVOLVING IN CHINESE
COMPANIES CONTINUES TO RISE.
SOMETHING I HAVE REPORTED
ABOUT EXTENSIVELY ON THIS
PROGRAM NOW FOR YEARS.
THE U.S. SECURITIES AND
EXCHANGE COMMISSION CHAIR GARY
GENSLER ALSO WARNING INVESTORS
ABOUT THESE RISKS JOINS ME
RIGHT NOW ON THE PHONE
MR. CHAIR GREAT TO SEE YOU
AGAIN SO HAPPY TO CATCH UP
AFTER ALL THESE YEARS THANK
YOU SO MUCH FOR TALKING ABOUT
THIS INCREDIBLE RISK FOR
INVESTORS WHAT CAN YOU TELL US
ABOUT RISKS THAT YOU SEE
TODAY.
>> FIRST MARIA SO GREAT TO BE
BACK WITH YOU I WISH IT HAD
BEEN IN PERSON LIKE LAST TIME
SITTING AT NEW YORK STOCK
EXCHANGE I THINK, IN TERMS OF RISKS I THINK THAT INVESTORS
RISKS I THINK THAT INVESTORS
ARE ALWAYS ---LAWED LAWED-LAWED
TRAIFKSZ WE ARE TRYING TO MAKE
SURE THEY HAVE APPROPRIATE
FULL FAIR CLOSURE BEEN
GENERALLY NOT BUYING DIRECTLY
INTO COMPANY IN CHINA APPLYING
A COMPANY USUALLY CAYMAN
ISLANDS THAT IS TERRIFIC BUT
IN CAYMAN ISLANDS THEY DO NOT
OWN THE CHINESE -- THEY ARE
SERVICE ARRANGEMENTS, TWO
CHINESE AUTHORITIES LAST 17
YEARS HAVE NOT ALLOWED PARTS
OF THE U.S. GOVERNMENT TO LOOK
AT THE BOOKS AND RECORDS OF
THESE COMPANIES THROUGH
SPECING AUDITORS TWO ISSUES
TAKING VERY CLOSE LOOK AT
CONGRESS WEIGHED IN ON
BIPARTISAN BASIS.
>> WELL THIS IS REALLY
IMPORTANT POINT THAT YOU MAKE
SO-CALLED VIE, YOU INVEST IN
THESE COMPANIES YOU THINK YOU
ARE INVESTING IN A CHINESE
COMPANY AND YET IT IS A SHELL
FOR THAT COMPANY.
TELLING YOU THAT YOU ACTUALLY
HAVE NO RIGHTS AND YOU HAVE NO
VOTE IN TERMS OF WHAT TAKES
PLACE THAT THE COMPANY ISN’T
THAT RIGHT.
>> YES WHAT YOU SEE MANY YEARS
AGO, THE -- GOVERNMENT SAYS
THEY DIDN’T WANT FOREIGN
OWNERSHIP IN CERTAIN SECTORS
TECH AND BIG INTERNET WE FOUND
A LOT OF POLITICAL RISK
APPLYING IN CAYMAN DWLIELDZ
HAS SERVICE ARRANGEMENTS NOT DIRECT OWNERSHIP THERE MAY BE
DIRECT OWNERSHIP THERE MAY BE
POLITICAL RISK EVEN IF IT
WASN’T SO-CALLED VARIABLE
INTRAINCENTIVE YOU DON’T OWN
DIRECT OWNERSHIP IN THESE
COMPANIES.
>> VARIABLE INTEREST ENTITIES
REALLY IMPORTANT POINT I AM SO
I GLAD YOU MENTIONED IT.
THE OTHER ISSUE MR. CHAIR A,
IS THE FACT THAT WE DON’T EVEN
KNOW IF EARNINGS ARE REAL
RIGHT IN THESE COMPANIES DO
NOT HAVE TO ADHERE TO THE
SARBANES-OXLEY ACCOUNTING
STANDARDS OF YU STATUES I
THOUGH HE AN EFFORT TO FORCE
THEM TO DO SO BY 2023
OTHERWISE THEY GET YANKED OFF
EXCHANGES, BUT INVESTORS NEED
TO UNDERSTAND THEY DON’T
FOLLOW THE SAME RULE THAT
EVERY OTHER PUBLIC COMPANY
EVEN THOUGH THEY TRADE ON
THESE EXCHANGES.
WHY?
>> ACTUALLY THEY ARE SUBJECT
TO SAME RULES JUST HAVE NOT
ALLOWED PUBLIC COMPANIES TO
HAVE OVERSIGHT BOARD HE HAD TO
INSPECT AUDITORS AUDIT
AUDITORS SO TO SPEAK SEC MY
PREDECESSORS, PYOU THE CLB,
WORKED HARD ON THAT CONGRESS
HELPED OUT AN BIPARTISAN BASE
THAT IT HAD DOESN’T HAPPEN IN
NEXT THREE YEARS YOU ARE RIGHT
ABOUT 200, OR 2 50 COMPANIES
WOULDN’T BE LISTED IN U.S. WHAT DO YOU WANT TO SAY TO A
WHAT DO YOU WANT TO SAY TO A
BLACKROCK HAVE HAD A PIECE OUT
GARY SAID THEY ARE
RECOMMENDING INVESTORS
LIST ALLOCATIONS TO CHINA BY
THREE TIMES THAT IS GROWTH
STORY INCREASE HOLDING IN
CHINA COMPANIES.
WE DON’T SEE RISKS HERE WITH
THIS RECOMMENDATION THAT YOU
ARE PUTTING FORTH YET THEY ARE
ALL-IN ON INVESTING IN
COMPANIES SAYING THIS IS WHERE
GROWTH IS.
>> WE’RE AN INVESTOR
PROTECTION AGENCY WE ARE
FOCUSED ON WORKING EVERY DAY
BEWARE OF RISKS NOT JUST
POLITICAL REGULATORY RISKS BUT
RISK YOU ARE NOT BUYING
DIRECTLY INTO CHINA THEY ARE
NOT ALLOWING YOUR SECTOR TO
LOOK AT BOOKS AND RECORDS IN
THE SAME WAY.
>> ALL RIGHT I WANT TO MOVE ON
TO CRYPTO YOU ARE FOCUSED ON
CRYPTOCURRENCY INDUSTRY HERE
CHAIR WE’VE GOT A LOT OF
QUESTIONS, ONLINE PLACES FOR
PEOPLE TO TRADE, WITHOUT THE
MIDDLE MEN RAISING CONCERNS
FROM SECURITIES AND EXCHANGE I
AM TALKING ABOUT DEFI POSING
RISKS ALLOWS USERS TO OPERATE
WITHOUT TAKING CUSTODY OF
FUNDS SECURITIES AND EXCHANGE
COMMISSION LOOKING INTO
POTENTIAL FRAUD IN ADDITION TO
ASSET OFFERERINGS WHAT DID HE
WE NEED TO UNDERSTAND WHERE IS
THIS GOING IN TERMS OF
POTENTIAL DIGITAL DOLLAR.
>> AGAIN, WE FOCUSED ON
INVESTOR PROTECTION, WE ARE
NEUTRAL ABOUT TECHNOLOGY
BITCOIN THE OTHER CRYPTO
TOKENS I WAS HONORED TO TEACH
A BUNCH OF THIS -- BEFORE I
TOOK THIS JOB, AND THIS
INNOVATE TECHNOLOGIES BUT, AT
THE SAME TIME, WE ARE NOT
NEUTRAL ABOUT INVESTOR
PROTECTION.
SO, IF SOMEBODY IS IN A
PROJECT THAT IS PROFFERING A
SECURITY SHOULD COME IN
REGISTER SO-CALLED
DECENTRALIZED FINANCE
PLATFORMS HAVE A LOT OF
CENTRALIZATION A GROUP OF
ENDURES RUNNING PLATFORMS THEY
SHOULD COME IN, AND TO THE
EXTENT WORK WITH US GET
REGISTERED.
MARIA: I GUESS I AM LOOKING
FOR US YOU KNOW THE BANK OF
INTERNATIONAL SETTLEMENTS
ISSUED A REPORT LAST WEEK
SAYING CENTRAL BANK DIGITAL
CURRENCIES COULD EXPEDITE
CROSSBORDER TRANSACTIONS
BRINGING DOWN COST WE KNOW
USING DIGIT IS COST-EFFECTIVE
THE REGULATORY FRAMEWORK IS
UNKNOWN TELL ME ABOUT
REGULATORY FRAMEWORK AS YOU
SEAT IT REPRESENTING TO
PUBLIC.
>>.
>> QUITE CLEAR TO PUBLIC,
MAKING A PROFIT BASED ON
EFFORTS MOST LIKELY SECURITY
SUPREME COURT HAS RESPONDED
ABOUT OFFER DECADES, COME IN
TALK IS TO REGISTER, I WOULD
SAY THIS, THIS FIELD IS NOT
GOING TO REACH ANY POTENTIAL,
OUTSIDE OF -- IF MONEY
LAUNDERING, TAX LAWS WHAT WE
FOCUS ON AT SEC INVESTOR
PROTECTION.
>> I MEAN THAT IS GOOD TO
KNOW, OBVIOUSLY, BECAUSE THERE
IS SO MANY IN KNOWNS ABOUT THE
DIGITAL DOLLAR BUT IS IT FAIR
TO SAY, THAT A DIGITAL DOLLAR
IS COMING?
>> I AM GOING TO LEAVE THAT TO
THE FEDERAL RESERVE, AND
TREASURY AND CONGRESS.
BUT I THINK THAT THESE
INNOVATIONS HAVE SHOWN THAT WE
ALL WANT PAYMENTS TO BE FASTER
AND LESS COSTLY BUT WE ALREADY
HAVE DIGITAL MONEY, OF COURSE,
BUT I AM GOING TO LEAVE THOSE
QUESTIONS MARIA, OF COURSE, TO
THE OTHER MY COLLEAGUES
OFFICIAL SECTOR.
>> WHAT ARE YOUR PRIORITIES
YOU COME WITH INCREDIBLE
RÉSUMÉ UNDERSTANDING THE
STRUCTURE BETTER THAN MOST
GIVEN YOUR PAST JOB TELL ME
WHAT YOUR PRIORITIES ARE
TODAY.
>> I THINK MARKETS EVERY DAY
ARE CHANGING, TECHNOLOGY IS
RAPIDLY CHANGING MARKETS WE
CAN’T TAKE FOR GRANTED THAT WE
HAVE BEST MARKETS I WOULD LIKE
THE END OF MY TENURE, THAT WE
LEFT THE MARKET EVEN BETTER SO
THE TREASURY MARKETS, TRYING
TO REFORM MAKE SURE THAT U.S.
TREASURY MARKETS ARE
RESILIENT, COMPETITIVE LOWERS
COST TO U.S. GOVERNMENT,
EQUITY MARKETS THAT WEIGH TAKE
ON SOME ISSUES AROUND DARK
POOLS, TRADING, CHANNELIZEING
RATHER THAN GOING TO EXCHANGES
COMPETITIVENESS THERE, THOSE
INTERNALIZE IN DARK POOLS I
THINK THERE ARE DEFINITELY
THICKNESS WE CAN DO TO MAKE
OTHER PARTS MORE TRANSPARENT
ALSO UPDATE DISCLOSURE REGIMES
FOR WHAT INVESTORS NOW WANT TO
SEE DISCLOSURES IN ADDITION TO
WHAT THEY’VE SEEN IN THE PAST.
MARIA: I KNOW, CHAIR, THE SEC
DOES NOT ENFORCE THE DEBIT
INTERCHARGE RULES THAT IS
FEDERAL RESERVE BUT YOU ARE
WATCHING, THE WAY COMPANIES
REPORT AND ACCOUNT AROUND IT.
>> WELL THAT IS RIGHT, OUR
DISCLOSURE MACHINES ARE REALLY
A CRITICAL PIECE OF THE
MARKETS.
THAT YOUR VIEWERS WE ALL GET
TO DECIDE WHETHER TO INVEST
BUT INFORMATION NEEDS TO BE
FAIRLY REPORTED, AND ITS
DECISION USEFUL NOT MISLEADING
WE ARE ALSO YOUR COPS ON THE
BEAT WE WORK HARD TO ENSURE
ISSUERS ARE REPORTING
ACCURATELY.
>> THERE ARE SO MANY ISSUES TO
TALK TO YOU ABOUT MEME STOCKS
POTENTIAL FURTHER