John Deaton, the founder of CryptoLaw, has issued a warning to the richest man in the world, Elon Musk that his crypto project can come under the radar of some legal issues since he frequently tweets about Dogecoin as Ripple battles in court.
Deaton addresses Musk while responding to a Twitter user named JayB, who heavily criticized SEC chair Gary Gelson about the Ripple’s suit.
The chairman is accused of having no fair policy for digital assets. Ripple, which has more than 300 connections with financial institutions outside of the U.S, is facing legal wrath while Elon Musk freely influences the price of the mem-coin DOGE through his tweets.
Jay B mentions in whenever Musk’s tweet about the meme-currency DOGE, its price soars, while Ripple has connections with almost every major financial institution & “$XRP still gets suppressed bc Gary Gensler is holding them, hostage .. thanks for your protection Gary.”
The Twitter user is not pushing the SEC to sue Elon Musk but is warning Musk. According to him, the SEC officials can identify the popular meme currency Dogecoin as an identity contract that runs under Tesla’s boss and all of his companies.
Deaton advises Musk to be extra careful since the SEC and Gary Gensler can “try and call #DOGE coin an investment contract with you and your companies.”
However, the effect of Musk’s tweet on the price of meme currency did not seem to be too profound as the coin price only rose for about 23 seconds.
Recently, on April 4th, SEC also addressed a letter to Elon Musk asking the reason for his late disclosure of his Twitter stake earlier.
As per the ruler, Musk was required to report the owned stakes within the period of ten days after exceeding 5%, which is Musk’s case was March 25th.
While Musk declared his holdings through the 13G form on April 4. Moreover, Security and Exchange Commission (SEC) said that it “may have additional comments” after Elon Musk responds.
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Source: https://www.thecoinrepublic.com/2022/05/31/elon-musk-can-face-legal-issues-over-his-pro-dogecoin-tweets-warns-cryptolaw-founder/