The Securities and Exchange Commission aka SEC has been making a lot of news in the crypto-verse. SEC’s latest lawsuit against the prominent cryptocurrency network Ripple had completely negated XRP’s efforts to move to $1. While the altcoin was finally recovering, SEC did not take back its accusation of XRP being a security as opposed to a cryptocurrency. But now, certain lawyers suggested that Elon Musk, the founder of Tesla could possibly find himself in trouble with the financial regulator if he continued using social media to boost Bitcoin or any other asset.
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A prominent news portal revealed that certain legal advisors suggested that Musk could be called out for having an impact on the price of cryptocurrencies through his tweets. Doug Davison was previously part of the SEC and is currently a partner at a law firm called Linklaters. Speaking about Musk’s latest move, Davison said,
“It would not be surprising—given the focus on the chief executive’s tweets, bitcoin pricing and recent dramatic market moves—for the SEC to ask questions about the facts and circumstances here.”
Bitcoin has time and again proved to be an extremely volatile asset. The price of the king coin has been affected by multiple aspects. Tesla, recently incorporating BTC into its system as a payment method and the procurement of $1.5 billion worth of BTC led to a surge in the price of BTC. The most recent swell in BTC’s price to a high of almost $48K was substantial proof of how Musk could spruce up the price of Bitcoin.
Davison wasn’t the only one to observe this. Victor Constâncio, the former Vice President of the European Central Bank [ECB] also mirrored the lawyer’s thoughts. In an array of tweets, the former VP of ECB said,
He further added,
“It was not disclosed when Tesla had made this investment. In December, Musk said that Tesla could buy bitcoin, and this was followed by many statements that he supported bitcoin. Bitcoin kept going up & Tesla investment has appreciated. The SEC will look into this 5/”
Musk had also embraced the term “Bitcoin” by adding it to his Twitter bio, which created quite an uproar in the crypto community. However, the uproar, as well as the bio, lasted for a very brief period.