According to report in the wall street journal elon musk filed the disclosure on april 4, which was 10 days after he reached his stake of five percent in twitter. According to the report joining us right now on, the phone is former sec chairman jay clayton hes, a cmc contributor, also apollo, lead independent director want to talk to him about that, and then, of course, crypto and uh whats happening in that space, but jay in terms Of elon musk um, how do you think the sec is really thinking about this uh good morning, andrew and uh? Actually, the journal article that you you cited did a nice job of whats uh of outlining whats uh going on here, which is you know. We have disclosure rules that once you cross a threshold uh, you have an obligation to the marketplace: uh the other constituents, the company other other shareholders, to disclose that you have that stake. The report is that theres an investigation and that the stake was disclosed late. The sec is going to look at that and i thought the journal did a particularly good job of laying out what the potential remedies might be here. In the event, there is a violation, including whether theres a disgorgement of ill gotten gains, because you were able to build a stake at a lower price or others, but thats whats, going on here andrew. I i in terms of what the the remedy or penalty will or should be slap on the wrist more im not going to get ahead of the staff.

You know i have great respect for my former colleagues at the sec im sure theyre, looking into the various factors here, um a range of possible outcomes here, as reported in the journal, but i think that i think theyre going to dig in. I think theyre going to dig in as they do and and well just continue to watch this space. Can we talk, crypto uh were looking at tether this morning, talking about them breaking the buck. Obviously, weve had this uh with one of the other stable coins over the past 48 hours and bitcoin has plunged. This is something youve been concerned about for a long time uh i i have been and um look in the crypto space. There are a bunch of different instruments: um. When we talk about stable coins, uh theres, a range of stable coins um there can be a stable coin that is backed one to one with cash um, and then there are stable coins that can be backed with uh. What i would say is other credit instruments or or in the case of uh, the one reported over overnight um other other crypto assets when you get away from one to one backing with cash or something very close to cash. Like short term treasuries youre in the area of what i would say is something very akin to a money market, mutual fund, andrew and investors. The public users of these should have the same kind of disclosure around any product like that that you would have in a money market mutual fund, and let me make another point here: we have looked at money, market, mutual funds and their potential to add instability.

In times like this over the years, but it goes back to 2008 or most recently in 2020, and there are rigorous rules around the amount of liquidity they have to have the nature of the instruments um and the like. That absolutely should be in this space. Um theres, no doubt in my mind, um, but i do believe that a well constructed stable coin and whether its um, backed by a regulated bank or clearly backed by cash or treasuries, is a means to facilitate transactions that has proven to be scalable and useful.

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