SEC vs. Musk: Here’s How Subpoena Drama May Affect DOGE’s Price

Top lawyers share insight on the Wall Street regulator’s latest subpoena enforcement probe for Elon Musk.

Elon Musk is ready for fight, sitting on top of our planet in karate uniform accompanied by DOGE dog.
Created by Gabor Kovacs from DailyCoin
  • SEC issued a subpoena for Elon Musk to appear for a deposition.
  • Top lawyers share their insights on the feud between Musk & SEC.
  • Dogecoin slides below $0.06 for the first time since October 2022.

The U.S. Securities and Exchange Commission’s (SEC) inquisition into Elon Musk’s Twitter purchase for $44 billion escalated last week when the Federal Court approved an official subpoena to initiate a deposition. On October 5th, the SEC sued Musk in San Francisco’s Federal Court to force him to testify in the SEC’s probe into his purchase of Twitter in October 2022.

Musk and the SEC have been battling it out for years; he called the SEC the “Shortseller Enrichment Commission” in 2018. The beef started boiling due to his famous Tesla 420 tweet, when the technology entrepreneur uttered, “I’m taking Tesla private at $420,” allegedly setting fear among shareholders.

Citing market manipulation, the SEC slapped Musk with a $20 million fine and forced him to delete the controversial tweets.

Top lawyers, including Elon Musk’s Alex Shapiro, have weighed in on the situation. Tesla’s biggest attorney reminded that the Twitter Chief had already testified twice in July 2022: “The SEC has already taken Mr. Musk’s testimony multiple times in this misguided investigation – enough is enough.”

Other lawyers don’t see a high chance of Musk winning this one. Marc Fagel, a Lecturer at Stanford Law School, advised him not to underestimate the magnitude of such moves by the SEC. “For the SEC to come out of the woodwork and make it public that they’re investigating, that’s a big step,” said Fagel.

Additionally, lawyers at Howard Fischer of Moses & Singer pinpointed that the SEC’s motion is “cut and dry,” as the Wall Street regulator has institutional authority to collect needed information through subpoena enforcement.

Slowdown in Volume Sparks DOGE Price Plunge

Meanwhile, Dogecoin’s transaction volume has decreased since July 2023, while the canine token remained mostly in price consolidation. However, the piling legal pressure on Musk in the $258 billion Dogecoin pyramid case added to the fact investors are more cautious about $DOGE. 

Regardless, the original memecurrency continues the struggle in a market-wide altcoin meltdown, dramatically hitting a yearly low of $0.058319 today. This comes in a market-wide crackdown, but the underlying issue is plummeting trading activity. DOGE trading activity recovered earlier this year on the release of the DRC-20 protocol, but the Doginals NFT hype quickly dried out.

On The Flipside

  • This is a different case than the $258 billion Dogecoin Pyramid class-action lawsuit, which has been challenged by Tesla’s & Elon Musk’s lawyer team as ‘far-fetched.’
  • Elon Musk hasn’t yet protested the SEC’s subpoena to enforce a deposition in the Twitter acquisition case.

Why This Matters

Vaguely regulated cryptocurrency prevents a quicker blockchain mainstream adoption process.

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This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Tadas Klimasevskis

Tadas Klimaševskis is a Lithuanian journalist at DailyCoin, specializing in covering the lighter side of the crypto industry such as memecoins and pop culture in the metaverse. He has experience as a music artist, English language teacher, and freelance writer, and uses his creative writing skills to summarize valuable information in his work. He is also a strong believer in the potential of blockchain and spends his free time listening to music, traveling, and watching basketball games.