The U.S. Securities and Exchange Commission (SEC) is currently investigating Elon Musk’s tweet in November 2021
The probe was revealed on Tuesday after the Securities and Exchange Commission (SEC) denied Musk’s attempt to dissolve a 2018 agreement that required certain tweets to be reviewed by an attorney in advance.
Elon Musk Twitter Frenzy in 2018 and 2021
The Securities and Exchange Commission (SEC) reacted angrily to Musk’s tweet in 2018, in which he indicated he would take Tesla private if its stock price hit $420. Following the tweet, Tesla’s stock price soared, boosting Musk’s personal fortune.
Musk was fined $20 million by the Securities and Exchange Commission (SEC) for the tweet. He had also resigned as chairman of Tesla’s board of directors and agreed to have certain of his tweets pre-approved.
Musk initiated a contentious Twitter poll in November 2021, asking his followers whether he should sell 10% of his Tesla stock. Telsa’s stock had plummeted as a result of the move, prompting several stockholders to file lawsuits.
Elon Musk’s Tweet Currently Under Investigation
According to the Associated Press, the Securities and Exchange Commission (SEC) is presently probing the 2021 Twitter poll.
The commission stated that it had issued administrative subpoenas as part of its investigation into Musk and Tesla’s compliance with the 2018 agreement’s disclosure controls.
The commission is also looking into whether Tesla appropriately stated its compliance with disclosure rules in public filings with the agency.
The SEC’s response to a motion from a Musk attorney asking a Manhattan federal judge to nullify a subpoena and throw out the 2018 agreement, which included a requirement that Musk’s tweets be pre-approved by a company attorney, was released Tuesday.
Musk’s Crypto Tweets are Safe for Now
Over the last two years, Musk has been regularly tweeting about cryptocurrency. In December 2020, his tweet on Dogecoin sent the memecoin soaring, and he is widely credited with bringing Doge into the mainstream.
Musk’s latest statement, in which he stated that he will not sell his crypto holdings, sparked a momentary rise. His tweets on Bitcoin until 2021 sparked dramatic market reactions, making him a prominent player in the cryptocurrency world.
Beyond Musk’s personal holdings, which are unknown, Tesla has approximately $1.5 billion in Bitcoin. Doge is also accepted as payment for some of the company’s products.
However, while the Securities and Exchange Commission (SEC) has not yet investigated Tesla CEO Elon Musk’s crypto-related comments, that might change if crypto becomes more regulated.
The regulator might accuse Musk of market manipulation because he owns Bitcoin, Ethereum, and Doge.
President Joe Biden signed an executive order this month urging multiple branches of the government, including the Securities and Exchange Commission, to focus on cryptocurrency regulation.
