Federal Judge Rules That Emojis Count as Financial Advice
Just to prove we’re living in an interesting timeline, a federal judge has ruled that using certain emojis while tweeting specifically signals to users that they should expect a financial return on their investments.It’s an extreme ruling that may affect crypto-Twitter, where you regularly see tweets adorned with profit indicator emojis like the Rocket, the Chart with Upward Trend, and Money Bag to catch the interest of would-be investors.But how can emojis count as financial advice, and how could this be policed?
Victor Marrero, a United States District Court judge for the Southern District of New York, ruled that tweets containing emojis like the Rocket, the Chart with Upward Trend, and Money Bag mean “a financial return on investment.”
Thefull court ruling documentdetails the arguments made by NBA Top Shot Moments owner and developer Dapper Labs against allegations that tweets promoting its NFT platform violated US securities laws andthat its NFTs are securities.
But while Dapper Labs contends that the promotional “tweets merely provide accurate facts regarding recent sales, and do not reference any gains or losses,” the judge saw the matter differently.
Can Emojis Really Be Financial Advice?
Reaction from the crypto world has been incredulous. Former SEC Branch Chief Lisa Braganca tweeted about the ruling, confirming that there would be “a legal consequence” to those who ignore it.
But the wider implication is that this ruling could make anything that uses an emoji into a form of security. If any time you tweet with a profit indicator or rocket ship alongside a project you believe to be good, you could be liable.
It also begs the question as to exactly who and how this ruling will apply. Will it apply to a random person passionate about an NFT project spamming the so-called “profit emojis,” or will it only apply to businesses, organizations, crypto companies, licensed investors, and financial advisors? The ruling is yet anotherway the SEC and government are attempting to regulate crypto.
It Won’t Be Long Before Crypto-Twitter Adopts Different Emojis
When a seemingly over-the-top ruling like this is made, it doesn’t take long before people find a workaround. Still, for now, it’s time to tone down the use of the Rocket, Chart with Upward Trend, and Money Bag emojis when tweeting about crypto, as you might accidentally create a security.
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