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Ripple (XRP) Attorney Cautions Elon Musk to Avoid SEC’s Trouble Via His Promotion of Dogecoin (DOGE).
The development comes a few months after Musk announced that the popular memecoin could be used to purchase Tesla products, including electric cars and other accessories.
Attorney Deaton does not want the Tesla boss to be a victim of the SEC.
Attorney John Deaton, an outspoken attorney in the Ripple v. SEC lawsuit, has cautioned Tesla CEO and founder Elon Musk to tread carefully in order to avoid getting into trouble with the Securities and Exchange Commission, following his massive support for Dogecoin (DOGE).
In a tweet today, attorney Deaton cautioned the Tesla exec in response to an XRP holder, who cited the influence Musk has on the popular memecoin.
The Twitter user who goes by the username @JayBlessed901, complained about the double standard of the SEC, the security agency that slammed a lawsuit against Ripple for allegedly breaching U.S. securities laws.
“Elon tweets about DOGE & it jumps Ripple has a deal with just about every major financial institution & XRP still gets suppressed because Gary Gensler is holding them hostage. Thank you for your protection Gary,” @JayBlessed901 tweets.
Responding to the tweet, attorney Deaton urged Musk to tread carefully as he continues to promote the widespread adoption of Dogecoin because the SEC may one day declare the cryptocurrency an “investment contract” just like they did with Ripple’s XRP.
He suggested that if that happens, both Musk and his companies, Tesla and SpaceX, may be charged for breaching securities laws.
Be careful @elonmusk because @GaryGensler and the SEC might try and call #DOGE coin an investment contract with you and your companies. https://t.co/MNWGHKr7Qa
— John E Deaton (@JohnEDeaton1) May 27, 2022
John’s response came after Yesterday’s Elon Musk’s announcement, where he confirmed that His SpaceX to Accept Dogecoin Soon for merchandise. Elon Musk’s statement came a few months after Musk announced that the popular memecoin could be used to purchase Tesla products, including electric cars and other accessories.
Attorney Deaton Fears a Repeat of Ripple’s Incident
Understandably, attorney Deaton’s warning comes based on the ongoing Ripple v. SEC lawsuit developments.
Recall that the SEC also charged Ripple’s execs, Brad Garlinghouse and Chris Larsen, for their roles in the promotion of XRP to investors.
Musk is also considered one of the influencers who contributed to DOGE’s widespread adoption. Aside from his companies accepting DOGE payments, he has made tweets that caused the token’s price to soar tremendously in the past.
Meanwhile, attorney Deaton, who recently filed an Amici request to represent over 67,000 XRP holders in the Ripple v. SEC lawsuit, is only expressing concern about keeping Musk away from the SEC’s charges.