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Musk’s reaction to rumors about the SEC investigation of his Dogecoin tweets

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The US Securities and Exchange Commission (SEC) has launched an investigation against Tesla and SpaceX founder Elon Musk. The reason was his Twitter posts about Dogecoin (DOGE) cryptocurrency.

In the past, Musk has repeatedly posted messages regarding cryptocurrency on Twitter, and they have become especially regular recently. Despite the lack of seriousness, Musk’s attention was often the impetus for the immediate rise in the DOGE rate.

Musk’s comments

Elon Musk commented on rumors about an investigation by the US Securities and Exchange Commission (SEC). The billionaire responded to one of the social network users, who ridiculed the SEC for investigating the “memes”. Musk appreciated the comic nature of the situation and wished it to be true.

https://twitter.com/elonmusk

“I hope they do! It would be awesome”, wrote the head of Tesla.

Musk has tweeted about Dogecoin several times over the past month. He said that he bought a coin for his son, and also urged large Dogecoin holders to free their wallets. In his opinion, the coin’s focus on a small number of addresses is its main problem. Musk even offered money to large Dogecoin holders. Due to the publication of the entrepreneur at the end of January, altcoin quotes rose by 1115% in three days.

Elon Musk doesn’t hide his negative attitude towards the SEC. He has repeatedly decoded the agency’s acronym as “Shortseller Enrichment Commission”.

Elon Musk’s conflicts with the SEC

The businessman’s first conflict with the commission occurred in 2018, when he wrote on Twitter that he planned to buy back Tesla shares from the stock exchange at $ 420 apiece.

Then the SEC filed a lawsuit against the entrepreneur for allegedly misleading investors and, as part of a settlement agreement, forced him to resign as chairman of Tesla and pay a $ 20 million fine.

In addition, the SEC prohibited him from publicly discussing news related to Tesla’s business on the social network without prior approval.

In 2019, the SEC had to contact Musk again when one of his tweets caused Tesla shares to plunge 5%. Musk himself then stated that he posted publicly available information and didn’t consider it significant for the market. The SEC, however, found that he hadn’t cleared the tweet with the company’s lawyers prior to publication, as required by the terms of the agreement with the regulator, and thereby violated it.

As we can see, Elon Musk was twice prosecuted by the US SEC.

It seems that the head of Tesla is pleased with the idea of another confrontation with the American financial regulator. In 2018, Musk said bluntly that he did not respect the SEC.

Probably, now the SEC will try to accuse the entrepreneur of using his Twitter account to influence the value of the cryptocurrency, and then we will see a repeat of the situation in 2018. It is not yet clear how the proceedings may end for Musk this time. Perhaps – again with a large fine, but other sanctions cannot be ruled out.

In the event of a judicial success, the SEC will have an endless opportunity to prosecute all sorts of celebrities who posted images of the Shiba Inu.

Is the investigation just a rumor?

However, the news about the beginning of the investigation by the SEC is still at the level of rumors, and confirmed only by “reliable sources” of some western publications. No official information was found on the SEC resources.

Note that the SEC doesn’t currently endow Dogecoin with the characteristics of securities. So, a real investigation in this regard seems unlikely.