John Deaton, the founder of Crypto-Law, recently tagged Elon Musk in a tweet, warning the billionaire that his frequent tweets advocating Dogecoin may get him in the same legal issues as Ripple and the XRP token.
Here’s how Musk and his firms could end up in hot water.
John Deaton responded to a post from @JayBlessed901, a Twitter user. The latter tweeted something about the unfairness of SEC chairman Gary Gensler’s long-running action against Ripple – a firm with over 300 significant financial institutions as customers outside the US – while Elon Musk freely drives the DOGE price up with his tweets.
The Twitter user was not attempting to persuade the SEC to sue Musk; however, Deaton discovered that this was a possibility and notified the CEOs of Tesla, SpaceX, Starlink, and two smaller companies.
According to the attorney, Gensler and the SEC may recognize Dogecoin as an investment contract with Musk and his firms.
However, it appears that the so-called Elon Musk effect on the Dogecoin price is fading. Earlier this week, Musk’s tweet was about to drive DOGE up for roughly 23 seconds.
In that tweet, he humorously typed “Dogecoin Trillionaire,” mocking individuals who use the term “billionaire” in a derogatory manner.
The SEC responds to Musk’s Twitter stake disclosure.
The SEC has published a letter sent to Elon Musk in which the regulator questions why the entrepreneur delayed disclosing his 9.2 percent ownership in Twitter.
Musk submitted a schedule 13G form to announce his new ownership on April 4, rather than March 25, as required by the laws. An investor has 10 days to report a shareholding in a corporation greater than 5%.
The SEC added that it “may have additional remarks” to make after obtaining a response from Musk.