The US SEC has strengthened supervision, can Musk still “voice control” the market?

If the individual regulators cannot stop Musk, what will happen if they join forces?

Original title: “Wall Street Watchers VS Universe Net Red: SEC may really block Musk’s social account”
Written by: Mori Goro

The day before yesterday, on the 1st local time in the United States, the US Securities and Exchange Commission SEC had issued a warning to Tesla, saying that Tesla did not supervise the use of Twitter by its CEO Elon Musk, or that it would impose corporate governance responsibility on Tesla. By the accountability.

The SEC, which was unable to raise a personal ban on Musk, had no choice but to choose a curve to save the country.

Wall Street Watchers VS Universe Net Red

The SEC did not notice Musk only now, but why did you choose to rectify it now?

Beginning in 2021, the stock market has received great attention due to Gamestop’s stock price manipulation. Some individual investors used the online Reddit forum to purchase Gamestop stock to increase the stock price and disrupt the short-selling plans of large institutions.

Despite the SEC’s multiple rounds of rectification and guidance, Gamestop’s valuation has been turbulent. Lende checked the data of the US stock market in the last 6 months and found that it is still fluctuating at an average daily rate of about 20%.

Then Musk tweeted “Gamestonk” with a link to the Reddit discussion area.

After this incident, the US Securities Regulatory Commission SEC began to be cruel to manage the accounts of social media players. The first to perform the operation, of course, was Musk on the cusp.

Lende mentioned in the previous article that the United States may usher in the most stringent regulatory era in 20 years. The SEC has a new chairman. After this digital currency expert becomes the chairman of the SEC, the price of bitcoin and other digital currencies Obviously it was greatly affected .

As for the control of public opinion monitoring tools, the Securities Regulatory Commission has also put on the agenda. Gensler said that the SEC is paying more and more attention to the interactive influence between social media and market behavior, and more and more funds are based on online posts and tweets. Analysis to make investment decisions.

Institutional tools used to detect public opinion on social media may lead to market manipulation risks. Gensler revealed that he is strengthening the monitoring system within the SEC.

In early May, the SEC stated that “Bitcoin is too speculative”

On May 19, the financial stability report data released by the European Central Bank ECB also showed that the rise of digital currencies in recent months has exceeded the 1637 tulip bubble.

It is more than the South China Sea bubble in the spring and autumn of 1720. This is a famous financial case of 2 of the “Three Big Economic Bubbles” finally named in the early financial history of Europe.

The historical relationship between Musk and the SEC

As a cosmic internet celebrity, Musk has always played many roles. The Future Auto Daily used the statistical tool Tweetstats last year to analyze Musk’s Twitter usage habits and tendency to post, and also stated that Musk’s Twitter account is “active as a high copy”.

Bloomberg reported on September 28, 2018 that the documents submitted to the court by the US Securities and Exchange Commission (SEC) showed that Musk was prosecuted for fraud.

At that time, Musk tweeted that Tesla would be privatized, and the US Securities and Exchange Commission (SEC) went to court on charges of misleading investors. After the news, Tesla’s stock price plummeted by 13% in after-hours trading.

Musk called these allegations “unreasonable” and said he “never undermined” his integrity. He said in the statement: “The unreasonable behavior of the US Securities and Exchange Commission made me deeply sad and disappointed.

I always act for truth, transparency and the best interests of investors. Honesty is the most important value in my life, and the facts will prove that I have never compromised in any way. “

In the end, Tesla and Musk paid 20 million US dollars to reach a settlement, but how can the universe celebrity Musk give up?

On October 24, 2018, CNBC reported that Musk’s Twitter account was temporarily frozen because Twitter thought his account had been hacked. For specific reasons, everyone will smile.

A year later, on May 1, 2020, Musk tweeted “In my opinion, Tesla’s stock price is too high.” As soon as the voice fell, Tesla’s stock price plummeted by more than 11%, and the market value evaporated by 140 One hundred million U.S. dollars.

Moreover, on June 4, 2020 and February 2, 2021, local time, Musk announced that he “temporarily withdrew from Twitter for a while” and came back quickly every time. But after every tweet, Tesla’s stock price, Bitcoin’s market value, and Dogecoin’s volatility all have a round of volatility.

At the end of February this year, the U.S. Securities and Exchange Commission (SEC) was intervening and investigating whether Tesla CEO Elon Musk was suspected of using his personal social media account influence to manipulate cryptocurrencies such as Dogecoin.

The event that Musk has repeatedly tweeted as a Dogecoin platform has been a hot topic in the currency circle. In January, Musk raised the price of Dogecoin by about 5 times. The market value has exceeded that in February. 6 billion U.S. dollars.

Can the SEC shut down Musk?

The permanent ban is not new. On January 8, 2021, Twitter announced the permanent ban on the account of former U.S. President Trump (the current president at the time). His account had been frozen since the 6th. .

Twitter stated that it has carefully reviewed the latest tweets published by Trump’s account and related circumstances. In view of the risk of further inciting violence in the account, Twitter decided to permanently ban Trump’s account.

Facebook CEO Zuckerberg also announced on the 7th that Trump’s Facebook and his photo-sharing website Instagram accounts will be blocked at least until the end of his term on January 20.

Therefore, the title is possible, whether it is the President of the United States or a passerby, the main reason is how to find it. Moreover, it should not only be the regulator who wants to silence him.

Recently, Facebook’s WhatsApp has received attention because of its revised user privacy policy. Musk even said on Twitter, “Let’s use Signal.”

Signal is one of WhatsApp’s competing products. Musk’s 42 million followers were obviously affected. Signal added 5 million new users to register four days after Musk’s tweet, and even allowed unrelated Texas medical equipment manufacturers. Signal Advance’s share price soared more than 60 times in three working days.

The National Labor Relations Board NLRB seems to have found a breakthrough some time ago. On March 25 this year, the NLRB ruled that Tesla repeatedly violated the labor law, organized employees to organize activities, and ordered Musk to delete his tweets three years ago.

The tweet hinted that employees would give up stock option benefits if they joined the union. The NLRB also requires Tesla to revoke parts of its 2016 non-disclosure agreement, which does not allow legal activities related to labor unions in accordance with Articles 7 and 8 of the US National Labor Relations Act.

If the individual regulators cannot stop Musk, what will happen if they join forces?

It is imperative to strengthen digital currency supervision in the United States. Not only the SEC, but the U.S. developments in May showed that the U.S. Currency General Inspection Office OCC, the Federal Reserve Board (FRB) and the Federal Deposit Insurance Corporation (FDIC) executives joined forces for the first time to establish a digital currency supervision and management team, and held the first meeting.

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