Why dogecoin payments on Twitter could get Elon Musk in trouble with the SEC…

In a recent tweet, XRP advocate John Deaton wondered if Twitter CEO Elon Musk would be sued by the U.S. Securities and Exchange Commission (SEC) if he allowed dogecoin (DOGE) payments on his social media platform.

Here’s a thought:

If @elonmusk allowed for payments over @Twitter but ONLY allowed #DOGEwould 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?

John E Deaton (@JohnEDeaton1) January 31, 2023

Although John Deaton believes that such a scenario would be “ridiculous,” the legal expert does not rule out the possibility. The attorney, who has been extremely critical of the SEC, argues that the agency is “malicious“.

Twitter is reportedly seeking regulatory approval for a new payment system. Initially, it will only support fiat currencies, but Elon Musk also plans to add support for crypto-currencies, according to reports.

While it’s not yet known which specific crypto-currencies Twitter will support, the Dogecoin meme crypto-currency seems to be the most likely option.

SEC Chairman Gary Gensler clarified that the agency doesn’t consider bitcoin a security, but the regulatory status of other major altcoins remains unclear.

The dreaded regulator sued Ripple in December 2020, arguing that the company was offering XRP as an unregistered security. The outcome of the case is likely to bring more regulatory clarity.