increases. thor down 6% and allergan higher on the reporarl icah taken a position in drugmaker. mike, its shares down 3% >> pepper and carl icahn that does it for closing bell. thanks for tuning in, everybody. "fast money" begins right now. fast money starts right now live from the nasdaq marketsite overlooking new york city's times squa i'm melissa lee, pete najarian, guy adamy and tonight on fast, if you love bitcoin, this is the show for you first, we're talking to wall street's new crypto king, the first financial institution to open a bit coin trading group and later we're setting down with brett redfearn. these are two interviews you will not want to miss. plus, elon musk winning back the heart of his investors at least for today. tesla posting its best day in

more than two years after the ceo described what's been a hellish few months company and we'll u the details and first we start off with the markets the dow surging 230 points and the nasdaq closing at a record and the financials joining the party surging nearly 2%. what is the breakout and the missing ingredient that could take the markets to new heights? >> pete. we w h the banksd withhe ten-yes been almost directly connected and i pointed out something earlier today and i'll say it again. j.p. morgan and the ten-year are identical over the last month. we were down to 277 and we are pushing toward three and all of a sudden you look at j.p. morgan and it is near 7 and it starts pushing back again financials are correlated to that if we can have not a violentveee financials can absolutely start to move, and move with the markets, i think, to the upside along with technology. >> anybody who has been applying

financials for the last 15 to 20 years knows the banks can rally in an inverted yield curve and if we look back to 2006 through 8, you saw banks have major outperformance also, the people that tell you that the banks have totally lagged this market and since the election they've outperformed the s&p by 12% in the last 15 months banks are in line with the s&p and to say we're doing this witut bks we're not doing thil banks get involved banks are trading at sympathy with what's going on with the yield curve and i don't think that's totally justified >> when you think about this, the ten year is on its way back to % and it is still at a tigh level, right so to me, when you think about what's the bull case for them right now, okay, so we had some deregulation, right? that's kind of great, you know what's going on in europe is obviously weighing on it a little bit i know some people will make the case if deutsche bank were to have real serious problems that it may benefit some u.s. bank, but if you think about the margins and you think about where the two-year is and you

think about what our course for short-term rates are in 2018, and then you think about where the ten-year is, it's really reflecting a case that maybe the global, synchronized growt thing is not there if you n'put thatien there capital market activity will not be particularly fantastic. >> so you say to yourself, maybe there's a reason why the xlf is down 8% from the high this year. >> i think people are oversimplifying the relationship banks are most profitable when the discount rats fed funds mov you pick it and they make more money, a lot of libor, and a lot ese are l moving higher and and banks are making more money there. if the banks are as strong as we think and the loan books are making more money and look at sales and trading and investment banking. these are businesses that have benefitted from volatility and i think are on the upswing >> no one's mentioneca

has that been factored in? >> the fact that we've not talked about it maybe it's not been factored in and one of the things we've said for a long time, all of the metrics we can throw around and in my opinion the most important metric is price to book value and we talked about that. in '07 when banks were flying and it was three and a half, three times book which was tclee clearly too cheap when they traded to discount to book and the question is, in my opinion, what itht multiple in this environok k it's somewhere around 1.8. for example, j.p. morgan last book value 68 gets you a $122 stock, which is pretty close to, and j.p. morgan was up four or five and given their book value at $181 and $186 and you're talking about a $125 stock >> if goldman sachs is the firm that will benefit most if you think about from rolling back regulations, why is the stock

down 15% since march >> why is it >> i don't think they're the ones that benefits the most. >> i think it's citibank and bank of america especially the core businesses. >> it's not goldman sachs. >> the return on capital and they've had the most leverage. >> think goldman sachs, look, when you got wall street knocked arecar in terms of whatital these guy his to have and minimum capital requirements and it put capital on banks and they kept a highly leveraged derivative book, et cetera and that's where goldman was hurt and i think that's where they were forced to change their model and they're getting into consumer banking and consumer finance into more stable businesses, but again, the banks you buy when deregulation is right there, citi and bank of america >> the banks will -- absolutely the one thing that you have to acknowledge about goldman sachs is okay, let's just say they've not made the full transition yet huge, hedge basically still a think about that

where's volatility everyone talked about how volatility is here to stay, and we've had the spikes because i tried to point out time and time again. 16% is 1% move a day andt difficult for that for the s&p to move every single day 1 volatility is at 17 and now here we're at the 11th. >>ha saying th the , these top fivesi names are the things that have gotten us back to having this conversation about breakouts in the russell. >> right >> so we have the pieces in st cheeconomically sensitivegrov discounted mechanism and it's telli telling you, citigroup, what is it telling you and if someone is to the safety trade which is amazon and what are the banks telling you? whats the fact that all of these other interest rate sensitive stock groups and we have utilities and homebuilders that can't get out of the way and autos until they have some sort of new tech sort of thing

gm and ford can't rally. you know what i'm saying what is it saying? >> at this point in time are we setting up for financials? first of all, it could be the last ireenneeded to sustain this sort of rally and we have the technology as you pointed out and maybe it's financials next, but in terms of catalysts in the future and we have a fed meeting and we're going see the fed raise interest rates through the end of the year we have secar results in the end and we have a market waiting for the a return the bull case is right there >> to answer dan's question, i'm not sure yours, maybe one of the things the banks are concerned about and we talked about it last night is there systemic risks with the european banks? i have no idea and maybe the underperformance, the market may be discounting the fact that maybe it's out there and maybe it's a concern i don't know but i will say quickly, citibank does concern me. you're talking about a bank still trading below book value at a slight premium to tangible book and dan makes a fair point,

and i can't tell you the reason. >> being look, i own citibank and bank of america and j.p. morgan and the money center banks are the way to go and i completely disagree that banks have underperformed and haven't been part of thely yes, since the market's peaked january 26th, go back 15 months, you can do this easily at home, folks, graph the syf and spx, and which is what we're talking about. this entire market has been on a tear since elections and certainly in the last 15 months and there have been periods when wooe seen a kick-up in interest rates. bottom line is the fed is good for banks. the j.p.gan consumer boo cited and it's stronger andthe% economy. >> it's not good for stocks. >> they had record earnings and -- we know they'll return more capital to shareholders when z car comes out and why are aren't we running out ahead of that >> to tim's point, year to date, if you put it in the box of year

to date, yes, underperformance no doubt you go back out, and the absolute outperformance, isn't there opportunity for the pause? >> we talk about it for a time yo anything go i ight line. in '17 they went through a straight line and they stopped and paused and they are lagging the rest of the market and it seems as if everyone wants to be in nhing, but tech ands much broader than the top five and i realize it's what everyone focuses on because of the market cap. take a look at sales force andd. >> these are massive stocks with 100 billion dollar plus market cap stocks adobe and these were stocks three years ago we u$30 billion. >> you're talking about a dozen, two dozen massive stocks that were not massive stocks o years ago, so they areraing everythg. y ing up everything and why is that because they have the great fundamental story behind them and then look at the strength of the consumer all you have to do is look at target take a look at nike.

>> i hava question maes, please >> good thing you raised your hand so polite. >> would you rather? >> i love this game! >> do you understand it? would youather, it means she gives you a ch >> i would rather you ask a question >> technology and financials, right here, right now. technology and financials, technology still >>hat's my time horizon? >> what's my time horizon? >> right here until the end of the year >> the end of the year i didn't even ask you. >> thanks. >> i'll take technology and all you have to do is look at my portfolio and y. ose two names because with tim, i tnk the money center is the place to be, but technology, i think, still has plenty of room to the upside >>ill allow you to say neither, dan >> i was going to say pass >> you pas >> one stat. one stat and wha to go >> apparently that works on the

sk if you look at the triple qs and thxlf divided by triple qs and anyone can dth at home and xlf has underpfohe tech in the last year by how much, guy, would you say >> 8%. do you think that's massive underperformance from a company that should be trading at a higher beta? you get two homewo assignments. >> and it's a gold star.>> and . nza.oming up, it iti we're talking to the cryptoking and they're taking crypto by btt redfearn and this is wn the man who will set the tone for future crypto regulations and you wot want to mi o mu speaks, tesla soa the comps annual shareholder meeting last night so what does musk y to woo back investors we'lplain d lateying at the h as more and more

stocks soared to record highs. >> sit up, guy guy adami has three simpleeps. we are live at the nasdaq marketsite in new york city's times square much more "fast money" is straight ahead cfa institute. en it co t sweat thtails.hecko. ...down-alternative pillows... ...and of course, price. tripadvisor helps you book a... ...hotel without breaking a sweat. because we now instantly... ...search over 200 booking sites ...to find you the lowest price......on the h. don't sweat your booking. tripadvisor. the latest reviews. the lowest prices.

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sla soaring higher the best day in o years this after ceo elon musk took center stage at the annual shareholder meeting last night our very own phil lebeau is here >> sal day >> royalty >> he's got the details. >> if you were a tesla investors this was everything you were hoping for last nigh he was very upbeat, very calm.he basicallsaid, look, we're portuni optimi model back in early april, there were about 2,000 a week was the production rate on the model 3 he said yesterday that they're at about 3500 right now and by the end of next month they'll likely be at the target of 5,000 a week and going through a period tell you theost excruciating,

hellish several months i've ever had and a lot of other people at tesla, but i think we're getting there. >> another reason why the stock wang higher today is because of his guidance when it comes toap profitable is the expectation and they'll be cash flowoshalf quarter three and quarter four, and then he said there will be an announcement soon on establishing a plant in china and, if you'rin tsa, tr even musk admits you should ndg a bit ent comes his predictions in tms of what will happen in the future. tt'probably, t i -- i kind of say when i t it will

occur, but then i'm typically optimistic about these things. but hopefully less optimistic over time. >> i heard from a number of people who said, wait a second, if we can't count on you to give us an accurate forecast, why do we bake so much on it? >> why is that even a question i also don't believe anybody should take that and say i'm going to change my investment outlook on tesla i don't think it changes anything, if you believe where they are, and if you think this guy is full of you know, that doesn't change either. >> part of the reason onid omus think that they can hit that target by the end of the month is thehird assembly line that they started building two weeks ago. is that actually up and running right now? because two weeks say long time. >> i don't think it's in the process of being brought up and lant is packedeir capacity at >> you get that up and running,

what happens next? it's not like they're stopping right duction time and some of that you can obviously do a macring in anting facily it cetera, but they are packed in tight in three months. >> the battery supplies for line, too, in nevada, ght? >> correct correct. there is assembly work being donen the gigafactory in neve not final assembly, but some assembly. >> i've been bullish and i've been right and i've been wrong and the guance they gave a couple of months ago with profitability and in terms of cars, why do you think the market reacted so favorably to basically a reiteration to guidance xt month you're right, it before and if you listen to the conference call or you watch the webcast, was there a calmness about him that was certainly not there during the earnings call

at all when he was short and a little b off in terms of his answers and i think you take that say we'lle hit by 1,000 and that's why people are saying we' good. >> you have toder if wall street finly believes there no you said it again. >> that would be my question >> 2270 cars in april means they're still burning cash and what's your sense of where they are there and will they have to articulate something >> they go cash flow positive. if they can truly hit it next month, they're cash flow positive for the second half of the year. >> phil, thank you great to see you >> good to see you >> and are you excited >> i do. >> i still tnk value this and i know i get disagreement ev disagreement every time i say this, is it a tech company or a car company? you have to value it that way.

>> tempted to buy amazon he will break it down. i'm melilee, you're watching cnbc first in business worldwide and in the meantime, here's what's coming up on fast >> cable guy >>ab stocks ard according to a top analyst, the move could signal trouble for at&t's bid forime warner we'll explain. and the man behind thatrm is c push will be here to tell us how big the sissbune can become when "fast money" returns see that's funny, i thought you traded options. i'm not really a wall street guy. what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you thyour options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. it's just complicated.

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mom anit's not theirs.car... it's mine. mine. mine. and it always will be, forever and forever. the new rx 350l with three rows for seven passengers. experience amazing at your lexus dealer. " despite skepticism from the powers that be bob pisani is breaking it down from the global exchangeconferc. hi, bob. >> hello, mess illissa, the char spoke us to exclusively and he

made it clear that he supported the development of block chain technology and even said it could be especially beneficial to the securities industry >> i think block chain technology has tremendous promise for the securities industry eliminating costs and the cost of verification in the securities industry is incredibly high. if we can make that more efficient, terrific. >> but the crypto community is eagerly waiting for clarification from the sec on three important issues first, whether icos, initial coin offerings are securities and hence regulated by the sec and if enhanced coins are securities and finally, what criteria would be metfor bitcoin etf and we've been waiting for a couple of years about this clayton declined to comment on how the sec ruled on these issues and he made it clear that ex regulationse to conform to regarding the sale of securities

>> i understand that there's a great deal of discussion about the crypto assets, but again, we're not going to relax our rules based on the level of discussion >> we need to know that the assets are there and we hait's g to function as our retail investors would expect those products to function >>. >> finally, over the nfew goet to launch its own bitcoin trading operation and reports are out today that fidelity are now looking to bulk out on hiring punishel for crypto projects and possibly build its own digital exchange this will add ad added credibility. the head of trading and markets at the sec is going to be with us this will be his first interview exclusively on cnbc. melissa, back to you >> we look forward to that, bob. thank you. see you then

>> wall street firms hammer out trading cryptocurrenci one firm has been set for a whil and they're set to dive deeper into the crypto world. >> here on fast money we are calling him, doving him now, wall street's new crypto kin w,. >> what are you trading right now, and how are you trading and what's your ultimate goal? >> we have a dedicated team of traders and technologists and people we have ra primarily, butn 2017 as kind of the mketplace expanded we expanded the number of coins we are trading and the number of exchanges we're providing liquidity on and in anticipation of the futures comg ouwhicdidn a tremendous amount of liquidity and in april and certainly in may and june, trading somewhere in average of a couple hundred million dollars a day across cme and futures combined and that's not in retail and for inituthet

to something other than cash settled bitcoin fus weill r smn currencies, and call it four or five that we feel is consistent with the regulatory landscape that's out there >> when you say consistent with the regulatory landscape and you mean ones that are considered a security and how is that influencing how you're building this out at a time when a lot of other people are doing so. >> the regulatory lasce is real, and i think there's a big debate publicly gog on about whether there should be more or less regulation and from our standpoint it's more about regulatory clarity and there's been a tremendous amount of focus in the sec with chairman jane carlisle at the cftc and there's a whole host of regulatory agencies because they expand beyond financial assets and i think the clarity will allow institutions to come in more tn anytng else and stitutio invest into uncertainty, and so

we are just taking the most conservative approach we can and make sure we're operating steps going forward. >> what is the demand, and you're a firm that does probably have thousands of clients and you trade actively with hundreds on a daily basis isart of your strategy getting ready because you think it is a case of a wall and money coming and give us a sense once you get more clarity around the regulatory >> so there's a lot of conversation and it's always difficult to parse out if they're immediate interest or longer term interest so there's a lot of plumbing that needs to be built to trade crypto currencies that are different than equities and fixed income, right? so in that regard, the conversations are real and we're building it out and we've built out an institutional grade platform that could scale very quickly and should that switch

that bk and others have talked about, what are the things that will make that switch? and it's the infrastructure and it's the regulatory demand and it's a lot of education, and i think a qualified custodian is something that's been well talked about and that would allow for assets to come in. frankly, you know, i think we've been very advocating for an etf and we think it checks a lot of the boxes for regulatory concerns specificaas it relates to raivestors and it checks boxes for institutional customers as far as custody and taxation and anti-money laundering and know your client and all of the things that are around and etf checks a lot of boxes and the chairman has made his concerns very clear and it's up to us in the ecystem to try to address those concerns that he stated in denial last year >> the bigger picture, when you see order flow come across your desk, how does it compare to what is going on in the equity

markets? is there a correlation or an verse? what have you noticed if anything >> as far as the correlation, as far as price movements, we haven't seen much correlation at all, and i'v people, and the appetite for risk. >> it tendto be driven by different factors, right i would say that trading cryptocurrencies is way more analogous to other asset classes than you might thi and marke maker's perspectivan sk understanding the ional sides of it, but as far as the investor demand for it and what drives the coin and other cryptocurrencies, and we have yet to find much of an analogy in the driver of it. >> i'm not doing any correlation analysis or anythinglike that, but when you put the charts on top of each other they look similar to the sec 500. >> it's a much different ownership, rooity? you know, it's not an

institutionally-driven marketplace like the s&p 500 primary it's biggest driver there, but the imports to those movements are different. >> it is a risk on, risk off and it's regulory and technological advancements and a whole host of other things out there. >> d picks up when prices are gher or does it matter? volume stays the same? >> generally when there are severe asset, and the first reaction tends to dry up as people slip away >> this that persist in ongoing that tends to intensify? so i don't think -- >> you're sitting here with bitcoin in this range? >> it's been, you know, the world -- it's a pretty wide range, right the last couple of months the world has told you it's worth more than 6,000, right u get down to 6,000 and people buy it and then it's worth less than 9,000 and you find yourself

middle of that range today and that's where it's knocking back and forth and what is the catalyst that creates that breakup up or down? the a lot of technicians that are probably better suited to opine on that, but that's kind of where we are in the range and we're right in the middle today >> thanks for stopping by. appreciate it. >> what do you think >> these guys are in the forefront of a lot of different new asset classes and it sounds like they'll be systematic about doing it in line and once you get more framework around that you will see the institutions come in and it will correspond with all of the stuff ready to to me, that's the bullish -- that's the most bullish case, rights is that institutions will come in. >> and the institutions are willing to put in its own capital work and that's a big part of this and that's a ld wall of thg issues with markets today is that institutions haven't really put a lot of capital at risk >> bitcoin is a hot topic

tomorrow on squawk box when jamie dimon will be in their first joint tv interview that's tomorrow starting at 6:00 a.m. eastern time. coming up, more bitcoin. don't miss our exclusive intervierett redarn, and he wilsethe tone of crypto regulations on wall street it could be market moving and that is later this hour. plw do you know when it's sa all-time highs and guy adami has simple rules and we'll break it down when "fast money" rerntus. tart . but as it grew bigger and bigger, it took a whole lot more. that's why i switched to the spark cash card from capital one. with it, i earn unlimited 2% cash back on everything i buy. everything. what's in your wallet?

>> welcome back to "fast money," stocks are soaring as more and more names hit all-te highs. ar not, guy adami is here with the breakdown of how to buy at record highs in a segment we like to call "the more you know". >> good segm i the andt's nice nes calms me down which is important which is why i want to talk about this. the first one i'm very bad at. i always focus on the negative you know who is good at pete na. sometimes you have to focus good news it's not always bad news and when the market is at all-time highs and don't look for reasons why things should go lower so change the framework of how you look at the market, focus on the good -- not always the bad number two, valuations matter. what does that mean? well, look boeing has been making all-time highs, but over the last couple of weeks and the last couple of month, guess what's happened their valuation went from 29,

almost 30 times forward earnings down to 21 times forward earnings and sometimes companies at all-time highs grow into their valuation. understand the endgame this is like a netflix thing what is the endgame? in my opinion the endgame for netflix is world domination, right? it's not about the money they spend. it's not about the cash burn it's not about the fact that they don't really make all tt mt that they're rolling up every possible sub in the world and ybody else andnsf etter than focusing on certain things and try to look bigger picture and focus on the endgame which is why a company like netflix continue to make all-time highs. >> what is a great example of all of this? earl, i'll show it to you. it is -- watch >> ale i am not some crazy apple bowl at all and apple checks all of those boxes and thinabout the endgame for apple. they're moving from a company that makes hardware to go into a

services business. so they have an endgame and valuations and the valuation continues to seemingly go down as the stock price goes higher and we can always focus on the bad news with apple and maybe they're not selling as many phones as they should, but you have to focus on the good news and what's happened over this time and i'll try to draw a nice little line. >> the stock continues to make new highs. sometimes you can be scary buying at the top, but you know what sometimes it means things are just going higher, mel >> that's great line >> it's a good-looking line. >> that is so straight >> look at that. when you are buying your app at all-time highs are you lugging into this trade or are you putting the capital to work once you are setting levels below the market i'm curious how you're putting this trade out >> say you flew in from pollute owe today and you've never been in the stock market. don't put all of your plutonium eggs in one basket dip your plutonium toe in the water and yes, you can start maybe today and layer in over a period of time and that period

of time is different for everybody, but to just jump in willy-nilly and nobody likes willy and nobody likes nilly, tim. >> milli vanilli >> i have a quick question so is there any one thing that really is the trigger for you. when you're diagnosing something like this and you're looking at a stock at all-time highs and you're saying that's the most important thing i'm looking at rye now. >> the most important thing in my opinion is valuation, and i think it always does come back to valuation at a certain point so you look, for example at a boeing and that stock until recently had been a move up, but if you look at their guidance a couple of months ago, they took guidance that it took their valuation from what was a ri 25 times forward earnings to a 21, but if that company didn't continue to raise their guidance, valuation matters. so to answer that question and valuation out of those three is the most important >> the more you know. >> the more you know >> la, la, la, la!

>> comup, the head of the sec trading markets division brett redfearn will be here to talk regulations and icos and much m it will be a market-moving event. deal or no deal. craig moffit says it could bsig at&t-time warner decision is made we have that when "fast money" returns.

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we're back with two important questions. are crypto commodities and securities and how will the sec regulate icos. we'll get answers and head over to new york city and bob pisani is there and he'll sit down with redfearn take it away, b. >> thanks much fred, we've gene each other many years and this is our first dict andarketing of the sec. let's pick up on the bitcoin issue. he made it very clear that he was supportive of the concept of the block chai not going to change the security to suit anybody's interest and when can we expect clarification on

interests, for example, are ico securities and alt currencies and alt coins like ripple and ether securities, as well. give us some idea of when we might be able to get clarification. >> one thing i've realized when looking at these issues is that it's not as obvious as you would think, right we've had a number of different products that we've looked at and we created this test where people look at the different characterio determine it's a security and qufrany, want all of them are obvious on its face exactly where it is. i think that there will be more statements coming forth from the commission on this, but in the meantime, we're highly encouraging any market participants who is involved in the space to look at these products and run that test and decide whether or not they meet the prongs of being designed as a security >> the chairman declined to say if it was ether securities

would it ultimately be litigated in the courts? >> it is unclear whether or not it would be litigated and i don't want to speak about any specific product and i do believe there will be statements on at least one of those products forthcoming in the future about providing more guidance on that, so i don't know what the likelihood is of litigation on those specific products. >> so when we are still six monthers on a ye monthers on down the road, the marketkeep asking when will we get clarification? we know a year from now when will it be resolved >> the message from the chairman and the commission has been pretty clear when he looks at i drshcos, theo meet the definition of the a security and there are things that go along with that,here's broker/dealer registration and are you trading on an etf? and i think it behooves all of the attorneys and accountants looking at these things to run that test. >> has anything happened actually happened? has anyone come forward?

has an ico come forward to the sec and alt currency and alt coin come forward and crypto exchange to say we want to register as a security >> has anybody done that >> we are looking at both the security level and broker-dealer registration and we're looking at exchangregistration >> we're primarily dealing with broker/dealer registration and i can tell you, there are a number of so-called exchanges and icos that we would see registrations as more rts. >> there isn't anybody coming forward. >> i thank warunderwhelmed for the enthusiasm coming within the regulatory structure right now. >> walk us forward a couple of years from now because the chairman made it clear he's not posed to the development of this market. suppose someone were to come forward in an exchange and say we want to register as an exchaufrmg and we want to trade 15 coins, for example, there's

no infrastructure that exists to do this right now that satisfies your needs for example, how do you determine a price? how do you determine aaring, der whysm is it set up you would have to essentially create an entire super structure to allow that. is that right? >> look, there are some things that exist, right? registering as a broker/de it's pretty clear whatas to happen there, and the trading system is the exception to the exchange where someone has to be there. that is there and there have been some folks who have come forward and started the process of putting a form, an ats form so they could conceivably be in ats. like i said, i think we would like to see more of those. on the broker/deal side there are also participants who have looked into broker/dealer registrations as well for acting as a broker/dealer for these curities and i don't think the infrastructure is ready for this >> you're the guy that would set

up that infrastructure, i presume. mplere the head of trading andr. you know, the pricing of these coins goes all over the place right now and the securities market, the stock market and bbo and there's regulation for how the prices happen. i presume that would have to be for coins as well. that>> wn weook at fair and efficient markets so you have a product that on this quoted here and ont nue it's quoted there and the prices are all over the map and you have to ask what is a faur price? it helps you to understand best execution when they' tding thicks and if they don't own the prices, how do you -- you do need to develop some kind of pricing mechanism that everyone can understand >> i think it's early day, and you know, we're looking at a marketplace that is evolving and still a largely unregulated

space e not couraging the deveinto me sound, regulatory structure on we've heard about market manipulation and they seem to float out there, these concerns and that's at the core of what you do, protecting with market manipulation how do you deal with that? i cannot underestimate or understate our concern about this you ha venues that are trading products where investors put a t of their money and it is unclear whether there are clear standards from protecting against market manipulation, we're talking about spoofing, pump and dump schemes and fraud and a whole set of issues that could potentially arise in this space without being within a regulatory structure >> you're the man that will set this all up. would you program toys come back and keep us up-to-date on sec is doing. >> it's his first interview and exclusive with us at cnbc.

melissa, back to you >> thank you very much, bob. bob pisani and given the regulations we couldn't help, but bring in our own bk on what said what stood out to you? there's a lot there. >> the challenge that mr. redfearn has and all regulars have, we have a global aet >> that's what everybody is ack hybr nature of these as oats if i'm giving someone to money to start their software and ce it is used like oil within the machine then maybe that's a commodity. so what i think what we're looking at and chairman ji giancarlo said, and that's the dill amma ethereum has and now it's its own network functioning and it'sore like xhcommodities.

>> and it's called gas when you have have some standard station and what does it mean to be a decentralized people, and some definitions around that. it wouldn't surprise mis if it might have been a security at one point. i am so gad that he about -- and owners holding the mgityf assets and bitcoin held around -- who is to sigh it, and we've seen it in currencies and we see it everywhere. it wouldn't surprise me to see it happening here. of the bitcoin, a lot of those are hurdlers they've haorever and they're never sell it

>> is the sec slow to regulate and other countries take up that charge and we see a lot of the ecosystem go offshore. >> you're seeing it with ipos.e. as ihuge i can't understate that enough how big the adoption level in asia is, and what's happening is the icos that we've looked at this year said you know what we're not going to touch u.s. investors and they raised $6 billion this year and most of that has been offshore and it's unfortunate because some of the best developers in the world are here in the u.s. and all of the adoption is happening in asia. >> you have to address it. you see that spread behind pisani during the whole thing? they should have croissantn and it would be fantastic. >> bob has been there all day and it's interesting to see how the food evolves throughout the day. >> there's coffee in the morning and then snacks and cookies and the -- >> good job by sandler >> what are we talking about >> d know.

>> the croissant >> bit koirn baller. >> bitcoin baller. media stocks surging and one analyst says it could be sendin waer deal and let's get a look at the new kraemer cam and no, your eyes are not deceiving you. that is a kramoji at the top of the screen and be sure to catch that on yoet mad money" at the top of of the hour meantime, much more "mad money" coming up ahead. no more lugging your clubs through the airport or risk having your clubs lost or damaged by the airlines. sending your own clubs ahead with shipsticks.com makes it fast & easy to get to your golf destination. with just a few clicks or a phone call we'll pick up and deliver your clubs on-time, guaranteed, for as low as $39.99. shipsticks.com saves you time and money. make it simple. make it ship sticks.

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check out media stocks soaring. dish, comcast soaring 4% and top media analyst craig moffit says it could be signaling trouble ar decision next week why? here's what moffit wrote in an e-mail to one of our producers today. if at&t loses and speculation will start that at&t will try to buy dish instead and i think that's bananas, but i don't doubt the market would leave it, even if it was wrongcot buy stod would drop its pursuit of sky2 what could this mean for the media space? >> that was a bik for me not th terribly long ago i don't know how much upside i still see in disney. i think that espn did get the boost because of the potential of gambling and the rest of that i don't think that's going to save the espn, but it certainly helps and they'll still have to execute on the disney side.

>> outside of dish iesn't make sense that it will be a bid the sector. >> dan saw interesting action in time warner today. >> the judge will rule on this next week. june 12th and ops volume and there's positioning on here and it's one and a half times average daily volume there was one tre that caught my eye when the stock was trading at 93.70 and it looked like a sale at 10,000 of the june 97 half call and when you do some of the math on this this could be the overriding and with at&t, all of the way down to 33 bucks and the deal price is around 100 bucks and if you think there is a chant this thing approves next week, it' a gd trade because the stock really should trade much ov 100 if it does get affirmed. >> check out the full share friday at 5:30 p.m. eastern time up next, final trade and actuall. as investment management professionals, let's measure up.

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with no minimums. i becallg about the schwab news. a modern approach to wealth management. let's always put investors' needs above our own. as investment management professionals, let's measure up. ute. fiade time pete najarian. >> i'm back in after selling it a week ago hilton is going higher. >> if you want to go for t cheapest, citi and i think it has leveraged this economy. >> i think tim's wrong and i think it's excellent. >> that's news >> tim's wrong >> guy adami >> the spirited show >> a spirited show. >> phil lebeau >> cnbc -- what do we call the other guy?>>he>> the mercantilee

>> you have phil lebeau.ff>> ie. see you baere rrow at 5:00 for more "fast. meantime, don't go my mission is simple, to make you money i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends. i'm just trying to save you some money. my job is not just to entertain but to educate and teach you so cl me at 800-743-cnbc or tweet me @jimcramer. either i am very lucky or the bullish gods wer