Founder and presenter of CryptoLaw company John Deaton said Elon Musk’s crypto project might encounter the same legal problems as Ripple (XRP) due to Musk’s frequent tweets promoting Dogecoin.
When reacting to a tweet from JayB, who criticized the SEC’s Gary Gelson over Ripple litigation, Deaton made the reference to the world’s richest man.
The user claims in the tweet that the head of the Securities and Exchange Commission (SEC) does not have a fair policy for all virtual assets. Ripple, which has over 300 connections with financial institutions outside the United States, has been subject to legal challenges, whereas Elon Musk is able to freely influence the price of his Dogecoin through tweets.
Elon tweets about $DOGE & it jumps #Ripple has a deal with just about every major financial institution & $XRP still gets suppressed bc Gary Gensler is holding them hostage .. thanks for your protection Gary😮💨
— XRP-JayB🐝📈🚀〽️🆙🔜 (@JayBlessed901) May 27, 2022
While Deaton has expressed his concerns and cautioned the owners of SpaceX, Tesla, Starlink, and the other two firms, this does not mean that a random person on Twitter wants the SEC to prosecute Elon Musk.
He expects the Securities and Exchange Commission (SEC) to recognize Dogecoin as an investment contract operated by Musk and his companies.
How Elon Musk’s tweets have affected Dogecoin in the past?
Musk was required to declare his retained shares within ten days, and on April 25, it appeared that he bought 9.2 percent of Tesla for $44 billion.
Musk was supposed to report his stake around March 25 since investors have to register their shares 10 days after reaching 5% according to the criteria. On the other hand, Musk revealed his ownership of the company by filing a 13G form late on April 4th.
Tesla merch can be bought with Doge, soon SpaceX merch too
— Elon Musk (@elonmusk) May 27, 2022
Even earlier Musk tweeted that the Tesla merch can be bought with Doge.
Musk was obligated by the Commission to register his held holdings within ten days, and on April 25, he seemed to have purchased 9.2 percent stakes worth $44 billion.
Musk was supposed to reveal his ownership around March 25, according to the guidelines, because investors are legally compelled to register their holdings 10 days after topping 5%. Musk, on the other hand, sent in 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.”
