{"id":24698,"date":"2023-07-20T03:48:13","date_gmt":"2023-07-20T03:48:13","guid":{"rendered":"https:\/\/icoinmarket.com\/senator-elizabeth-warren-shifts-focus-from-crypto-to-elon-musk\/"},"modified":"2023-07-20T03:48:13","modified_gmt":"2023-07-20T03:48:13","slug":"senator-elizabeth-warren-shifts-focus-from-crypto-to-elon-musk","status":"publish","type":"post","link":"https:\/\/icoinmarket.com\/senator-elizabeth-warren-shifts-focus-from-crypto-to-elon-musk\/","title":{"rendered":"Senator Elizabeth Warren Shifts Focus From Crypto to Elon Musk"},"content":{"rendered":"
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In an intriguing twist of her political trajectory, Senator Elizabeth Warren, known for her aversion to cryptos, has focused on the practices of tech mogul Elon Musk. <\/p>\n
Known as the world\u2019s wealthiest man, Musk\u2019s recent management decisions have drawn the ire of the Massachusetts senator. It set the stage for her recent call to the Securities and Exchange Commission (SEC) to investigate Musk\u2019s alleged conflicts of interest at Tesla and Twitter.<\/p>\n
Senator Elizabeth Warren Goes After Elon Musk<\/h2>\n
Senator Elizabeth Warren is concerned that Elon Musk\u2019s extensive workload could be detrimental to shareholders\u2019 interests. Her argument revolves around Musk\u2019s simultaneous roles as CEO of both Twitter and Tesla. <\/p>\n
The American politician argues this dual responsibility has raised serious concerns about conflicts of interest. It could lead to a potential misuse of corporate assets, and negative impacts on Tesla shareholders.<\/p>\n
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\u201cThough Mr. Musk recently announced the hiring of Linda Yaccarino as the new CEO of Twitter, this does little to address the concerns to Tesla and its shareholders related to his dual role. Despite hiring Ms. Yaccarino, he is likely to retain \u2018significant control\u2019 over the company and intends to continue overseeing core functions of the business,\u201d said Warren.<\/p>\n<\/blockquote>\n
Indeed, Warren\u2019s indignation is fueled by what she sees as Tesla\u2019s board of directors\u2019 failure to address these issues. She asserts that the board has not adequately informed shareholders about Musk\u2019s questionable capacity. <\/p>\n
In her letter to the SEC, Warren requested an examination of how Tesla\u2019s board of directors managed \u201cthe apparent conflicts of its CEO, Elon Musk.\u201d<\/p>\n
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\u201cInevitable conflicts of interest arising from, for example, Twitter\u2019s reliance on advertising revenue from automobile companies that are in direct competition with Tesla, including Audi, Chevrolet, Ford, GM, Jeep, and Volkswagen\u2026 Mr. Musk could run Twitter to benefit Tesla through favorable algorithms or free advertising,\u201d said Warren. <\/p>\n<\/blockquote>\n
Investors have been allegedly left in the dark, undermining their ability to make informed voting and investing decisions. Even Cathie Wood revealed that ARK Investment Management reduced its holdings in Twitter by 47% since Musk took over the social media giant. <\/p>\n
Meanwhile, Oppenheimer & Co. downgraded its rating on Tesla. The decision came after Elon Musk\u2019s decision to purchase Twitter, which was followed by a 58% plunge in Tesla\u2019s stock <\/p>\n
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\u201cWe believe Mr. Musk is increasingly isolated as the steward of Twitter\u2019s finances with his user management on the platform. We see potential for a negative feedback loop from departure of Twitter advertisers and users,\u201d said Colin Rusch, an analyst at Oppenheimer.<\/p>\n<\/blockquote>\n\n<\/figure>\n
Championing Financial Accountability<\/h2>\n
The twist in the senator\u2019s narrative comes from her previous focus on cryptocurrency regulation, particularly in her \u201canti-crypto\u201d stance. Warren had previously argued that the lack of regulations and the potential for fraud made the crypto industry a threat. <\/p>\n
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\u201cCrypto is helping fund the fentanyl trade, and we have the power to shut that down. It\u2019s time,\u201d said Warren.<\/p>\n<\/blockquote>\n
Her decision to shift her attention from the crypto to the world\u2019s richest man is seen as a dramatic repositioning.<\/p>\n
Still, this shift does not suggest softening her views on crypto. Rather, it appears to expand her focus to include any financial entities or individuals she perceives to be acting contrary to the public\u2019s best interest. <\/p>\n
Read more: Warren Calls on All Regulators to Rein in Crypto<\/p>\n
As Warren prepares for another Senate term, she continues to leverage her reputation for championing corporate governance and regulation. From her anti-crypto stance to her current anti-Musk campaign, Warren underscores her role as a watchdog of financial accountability. <\/p>\n
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Disclaimer<\/h3>\n
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content.<\/p>\n<\/div><\/div>\n