Dogecoin and Twitter. A potentially dangerous scenario for the SEC?
Since Elon Musk’s acquisition of Twitter, there have been rumors that the microblogging platform is on its way to becoming a digital payments platform.
With Musk’s love for Dogecoin (DOGE), it is speculated that the digital currency will have a prominent role in the future of Twitter. However, attorney John Deaton raises concerns that this situation could lead to Twitter finding itself in the SEC’s crosshairs.
The SEC is known for its erratic stance regarding lawsuits against players in the cryptocurrency ecosystem. For example, it has been in a legal fight with Ripple Labs Inc since December 2020. The SEC alleged that Ripple sold XRP tokens as unregistered securities and made approximately $1.3 billion in sales. As the case has evolved, many believe that the blockchain payment firm could win the case.
Dogecoin in the spotlight of the SEC.
John Deaton poses a what-if scenario where Twitter gets approval to offer cryptocurrency payments and only allows Dogecoin. According to the lawyer, this could cause the SEC to go after the company, since it could consider DOGE tokens as securities. Since Elon Musk has had a history with the SEC, it is likely that he will do everything possible to avoid a further fight with the SEC via Dogecoin and Twitter.
A necessary diversification.
Twitter is likely trying to diversify its revenue generation models due to the loss of ad revenue. Many of the company’s biggest advertisers have withdrawn and the platform is pivoting into the digital payments sector. Therefore, it is unlikely that the company in front of the SEC will point to Dogecoin as the only cryptocurrency supported on its platform.
Dogecoin’s future in Twitter’s digital payments proposition is uncertain, but it promises to be an interesting event for the cryptocurrency world. The influence of Elon Musk and the wide acceptance of the currency as a means of payment could be decisive factors in its success on the platform.while government regulation and possible prosecution by the SEC are major hurdles to consider.