Elon Musk might face legal action from the US Securities and Exchange Commission (SEC) if he decides to accept only Dogecoin (DOGE) as a payment method on Twitter, according to attorney John Deaton. This statement came after SEC Chairman Gary Gensler stated that there was no need to establish regulations for the new sector.
Deaton’s comments come in response to news that Musk is trying to integrate payments into Twitter. The payment method is not known, but reports suggest that the company has already started developing software and applied for licenses. Deaton wrote on Twitter that if Musk only accepted DOGE as a payment method on Twitter, he could face legal action from the SEC for DOGE being an unregistered security.
He wrote on Twitter, “Here’s a thought: If @elonmusk allowed for payments over @Twitter but ONLY allowed #DOGE, would he be at risk that the SEC would sue him claiming #DOGE is an unregistered security? The answer should be: that’s a ridiculous thought. But with today’s malicious SEC, is it?”
Gensler has stated that most cryptocurrencies, with the exception of Bitcoin, are securities and are governed by traditional finance laws. The SEC has also claimed in its lawsuit against Ripple that XRP is always security, a position that Deaton, who represents thousands of XRP investors, has repeatedly noted as a violation of securities legislation.
XRP VS SEC
In a recent video for Crypto Law TV, Deaton discussed what transpired in court regarding the legal dispute between the SEC and Ripple. He said that the SEC requested a broad, ambiguous injunction from the New Hampshire district court judge to prohibit the sale of the LBRY token during an appeal hearing in order to classify it as a security and bring secondary market sales under the SEC’s authority.