Elon Musk is reportedly under SEC investigation over Dogecoin tweets
electrek.co
electrek.co
You may wonder if the SEC has the legal authority to do this. The answer is that it doesn't really matter. All the SEC wants to accomplish is to establish a precedent where it's authority over cryptocurrency is legitimate. All it would take is a judge (who probably doesn't even know that much about crypto) to rule that the SEC is within it's right to do so and then bam! we have crypto regulation forced down everyone's throats.
"As much as I love cryptocurrency and speculation, I think this investigation is warranted. Elon was putting out lots of tweets that reduced to "buy doge" without any substance behind them. That's pumping."
What I'm going to say now that I've thought about it:
What's the difference between Elon saying "DOGE good, buy?" and Jim Cramer saying "here are 20 top SPACs you should buy?" if Elon hasn't shown intent to short it? (I think Cramer has even more reach than Elon since he's big on CNBC and has been since forever.)
Everyone with money pumps tickers all the time; it only becomes a bad thing when they dump after the pump. (I'm recalling someone on Twitter saying that they were going to put $4M into GME via tweet to further pump the stock...maybe $4M put options?)
I also don't buy SEC's intent to "regulate" crypto prima facie. The market has decided that crypto is a valuable thing. Tons of people dump money into crypto that later becomes invaluable, but how is that different from the MILLIONS of people who dumped an insane amount of dollars into GME at the height of the GME craze a few weeks ago (or even now given that GME is on the upswing?).
Cryptocurrency, by definition, is meant to be decentralized. This + proof-of-work is what maintains the authenticity of their ledgers. I can't see any regulating body maintaining control over it without breaking this very basic and very fundamental tenet of the idea.