Show an ad over header. AMP

I am the FIRST

Wall Street's top regulator says a report on meme stock mania is coming this summer

Wall Street's top regulator says a report examining meme stock mania will be coming "sometime this summer."

The big picture: It will "detail the range of activities" that came out of the January events," SEC chair Gary Gensler said Thursday at a third congressional hearing held to dissect the GameStop trading phenomenon.

Why it matters: The report could be a blueprint for tougher regulation — or a signal that the market chaos won't lead to anything beyond the attention frenzy that's since dried up.

Catch up quick: Gensler fielded the majority of lawmaker questions, though two of the saga's other key players — the head of a clearinghouse and the top executive at the Financial Industry Regulatory Authority — testified alongside him.

One fiery exchange: Gensler was pressed on whether investing is gambling. He wouldn't say.

  • "It's risk-taking and risk-taking can be in different forms — I'm trying to use my words carefully," Gensler said.
  • It's a debate that has dragged in legendary investors like Warren Buffett and Charlie Munger, who have blamed Robinhood for turning the stock market into a casino — something the trading app pushed back on.
  • Gensler noted the SEC is examining options for apps like Robinhood that "gamify" and reward more trading.

Worth noting: For a hearing about GameStop, several lawmakers focused on everything but. The result was a broader glimpse of Gensler's agenda as head of the SEC, though he often dodged questions by noting he's only been at the agency for a few weeks.

  • On cryptocurrency exchanges: Gensler hinted Congress could play a role in bringing better "investor protection" since they "currently have no regulatory framework."
  • On climate change disclosures: They could help bring "some consistency and comparability" for companies that disclose climate risk.

4 ffp

Why the startup world needs to ditch "unicorns" for "dragons"

When Aileen Lee originally coined the term "unicorn" in late 2013, she was describing the 39 "U.S.-based software companies started since 2003 and valued at over $1 billion by public or private market investors."

Flashback: It got redefined in early 2015 by yours truly and Erin Griffith, in a cover story for Fortune, as any privately-held startup valued at $1 billion or more. At the time, we counted 80 of them.

Keep reading... Show less

Scoop: Facebook's new moves to lower News Feed's political volume

Facebook plans to announce that it will de-emphasize political posts and current events content in the News Feed based on negative user feedback, Axios has learned. It also plans to expand tests to limit the amount of political content that people see in their News Feeds to more countries outside of the U.S.

Why it matters: The changes could reduce traffic to some news publishers, particularly companies that post a lot of political content.

Keep reading... Show less

Scoop: Amazon quietly getting into live audio business

Amazon is investing heavily in a new live audio feature that's similar to other live audio offerings like Clubhouse, Twitter Spaces and Spotify's new live audio platform, sources tell Axios.

Why it matters: As with Amazon's efforts in podcasting and music subscriptions, the company sees live audio as a way to bolster the types of content it can offer through its voice assistant, Alexa, and its smart speaker products.

Keep reading... Show less

Hurricane Ida exposes America's precarious energy infrastructure

The powerful hurricane that plunged New Orleans into darkness for what could be weeks is the latest sign that U.S. power systems are not ready for a warmer, more volatile world.

The big picture: “Our current infrastructure is not adequate when it comes to these kinds of weather extremes,” Joshua Rhodes, a University of Texas energy expert, tells Axios.

Keep reading... Show less

"We must go further": 70% of adults in European Union are fully vaccinated

About 70% of adults in the European Union are fully vaccinated against COVID-19, Ursula von der Leyen, the president of the European Commission, said Tuesday.

Why it matters: The milestone makes the E.U. one of the world's leaders in inoculations, after an initially lagging vaccine campaign, the New York Times notes.

Keep reading... Show less

What Elizabeth Holmes jurors will be asked ahead of fraud trial

Jury selection begins today in USA v. Elizabeth Holmes, with the actual jury trial to get underway on Sept. 8.

Why it matters: Theranos was the biggest fraud in Silicon Valley history, putting both hundreds of millions of dollars and thousands of patients' health at risk.

Keep reading... Show less



Get Goodhumans in your inbox

Most Read

More Stories