Is the SEC finally ready to try and take on Tesla CEO Elon Musk? After meekly hitting Musk with a slap on the wrist following the whole "funding secured" debacle (back in the summer of 2018, Musk tweeted that he had put together a deal to take Tesla private at $420 a share...the stock soared, until it came to light that this was an elaborate joke), the SEC is reportedly investigating Musk over his dogecoin-related tweets, according to media reports.
- SEC IS SAID TO INVESTIGATE TESLA CHIEF EXECUTIVE MUSK FOR HIS TWEETS ON DOGECOIN: SOURCES FAMILIAR WITH THE MATTER
Remember, part of the deal that Musk struck with the SEC after the 'funding secured' blowback involved his board approving future tweets. However, Musk has flouted this requirement repeatedly, and appears to say whatever he feels on social media, where he enjoys a rabid following, especially on Twitter.
Since the start of February, the price of dogecoin has surged as Musk has led an army of retail traders whose stated goal is to pump the coin as massively as possible.
It looks like dogecoin sold off on the news.
Though, perhaps to create some cover for himself, Musk has also tweeted that he would support a selloff in dogecoin if the biggest holders decided to dump their positions.
If major Dogecoin holders sell most of their coins, it will get my full support. Too much concentration is the only real issue imo.— Elon Musk (@elonmusk) February 14, 2021
I will literally pay actual $ if they just void their accounts— Elon Musk (@elonmusk) February 15, 2021
Earlier this month, Musk started posting memes about dogecoin and even tweeted that he would buy some for his youngest child, X Æ A-12.
Bought some Dogecoin for lil X, so he can be a toddler hodler— Elon Musk (@elonmusk) February 10, 2021
On Wednesday, Dogecoin soared 25% in a day after a one-word tweet from Musk.
Literally pic.twitter.com/XBAUqiVsPH— Elon Musk (@elonmusk) February 24, 2021
All the while, many have speculated about whether Musk controls a dogecoin wallet with some $3B worth of the token inside it.
The SEC has tried to regulate the nascent crypto market, but it's still not clear whether it has the authority. As for Musk, he has mostly steamrolled the agency in the past. Details about the investigation remain unclear, just like the agency's ability to hold Musk to account. Will we see the SEC try and force the famously independent-minded executive to pre-clear his tweets with the board again?
Is the SEC going to - wait for it - tell Tesla to preclear Musk's tweets (again)?— zerohedge (@zerohedge) February 25, 2021