Grayscale recently had its ETF application denied by the SEC. Within hours, the company began suing the regulator. According to an interview with Mark Yusko, the CEO of Morgan Creek Capital Management, suing the SEC is a bad idea. He opined that it virtually never works since the regulator has unlimited resources and tremendous powers. While the industry may applaud Grayscale's action, the outcome is never good. Yusko also opined that he is more optimistic about other strategies in terms of getting some policy in crypto.
Stablecoin: A Possible Path to a Better Future
One policy that Yusko supports is the regulation of stablecoin, which could become the default payment service for the world backed by the US dollar. The policy is being proposed by the Toomey and Hagarty bills and is even contemplated in the limits bill, which has much more than just stablecoin. Yusko believes that if Toomey could endorse the stablecoin regulation, it would be a fantastic thing to have the first marker of policy on a very basic asset.
According to Yusko, the stablecoin policy is straightforward, with a full audit every 30 days, and no assets held supporting the token or coin with a duration longer than 12 months. Yusko has been pushing the agenda for three months and is working hard to go to Washington to do whatever he can as a private citizen to push that agenda.
More Disclosure is Needed
Yusko also noted that Luna's meltdown showed that more disclosure was needed. He believes that along with more regulation is the requirement for more disclosure. He opined that this is a good idea since more disclosure would lead to more transparency, which would help the industry to grow.
Final Thoughts
While suing the SEC may be a bad idea, there are still ways to achieve better policies for the crypto industry. Regulating stablecoin and providing more disclosure could be the first steps in the right direction.
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