On May 28, CryptoLaw firm founder and host John Deaton warned Elon Musk in his tweet that his crypto project might face the same legal problems as Ripple (XRP) due to his frequent tweets promoting Dogecoin. Deaton mentioned the world’s wealthiest man in response to a tweet from JayB, who criticised the SEC’s Gary Gelson over the Ripple litigation.
The user claims in the tweet that the SEC’s chairman has no fair policy for all virtual assets. They urged Ripple, which has over 300 links with financial institutions outside the United States, to face legal challenges while Elon Musk easily controls the price of his Dogecoin through tweets.
It does not imply that a random Twitter user wants the SEC to prosecute Elon Musk, but Deaton has raised his concerns and cautioned the owner of SpaceX, Tesla, Starlink, and the other two firms. He expects that the SEC will view Dogecoin as an investment contract run by Musk and his firms.
How Did Elon Musk’s Tweets Affect Dogecoin’s Price?
Elon Musk’s influence on the Dogecoin price appears to be minor. The promotion tweets boosted the coin price for only 23 seconds.
Musk sarcastically used the term “trillionaire” in his tweets. He attempted to troll users who frequently use “Billionaire” as a pejorative term.
Notably, the SEC earlier addressed Elon Musk in a letter on April 4, asking why he did not publicly report his Twitter ownership sooner.
“Please explain to us why the schedule 13G does not appear to have been submitted within the requisite ten days from the date of acquisition as required by rule 13d-1(c), the regulation on which you indicated that you relied to make the submission, according to the SEC’s letter.”
The Commission ordered him to register his ownership shares within ten days, and similarly, 9.2% stakes seemed to have been bought by Musk on April 25, valued at $44 billion.
Musk was expected to disclose his ownership around March 25, according to the guidelines, because investors are legally compelled to register their holdings 10 days after topping 5%. Alternatively, Musk submitted the 13G form late on April 4 to reveal his ownership.
Furthermore, once Elon Musk answers, the Securities and Exchange Commission (SEC) indicated that it “may have additional remarks.”
