The lead of the CryptoLaw project believes that Elon Musk’s promotion of DOGE could convince the SEC that the asset is a security under the management of his companies.
Crypto expert John Deaton via Twitter warned Elon Musk that his messenger initiatives to promote Dogecoin could bring the asset to the attention of the Securities and Exchange Commission (SEC). According to the expert, Dogecoin could suffer the same fate as Ripple if SEC Chairman Gary Gensler believes that Musk’s promotion of cryptocurrency indicates that the digital asset belongs to the security class:
“Be careful as the SEC may recognize the DOGE cryptocurrency as a security and link it to your companies.”
John Deaton is acting as an attorney representing XRP holders in court with the SEC. John Deaton’s warning is a reaction to a tweet from a user named Jay-B who declaredthat the head of the SEC is not equally fair to different cryptocurrencies.
According to a CryptoLaw host, the commission is pursuing the Ripple project, which is linked to 300 financial institutions outside the US. While Elon Musk is freely promoting Dogecoin via Twitter.
Deaton doesn’t think Jay-B’s announcement will bring Dogecoin to the attention of the regulator. But still, Musk draws attention to the fact that there is logic in the reasoning.
On April 4, the SEC sent a letter to Elon Musk asking why he did not publicly announce his stake on Twitter. The commission demanded that the billionaire report on his shares within the next ten days.
Tesla CEO and founder Elon Musk said in March that he was “seriously thinking” about building a new open-source social network with DOGE support.
Source: Bits
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