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US Treasury Will Examine Elon Musk's Twitter Purchase

The U.S. Treasury Department began reviewing its legal power to investigate Elon Musk's $44 billion Twitter purchase on Wednesday. On Monday, Senator Chris Murphy of the Foreign Relations Subcommittee wrote to CFIUS requesting a review of the arrangement. He said Saudi and Qatari investors might affect national security.

03-Nov-2022 By: Simran Mishra
US Treasury Will Exa

The U.S. Treasury Department is examining its legal standing to look 

Into Elon Musk's $44 billion purchase of Twitter.

On Wednesday, the U.S. Treasury Department started examining its legal authority to look into Elon Musk's $44 billion purchase of Twitter. The action was taken in response to a letter sent by Senator Chris Murphy of the Foreign Relations Subcommittee on Monday asking the Committee on Foreign Investment in the United States (CFIUS) to review the agreement. According to him, Saudi Arabia and Qatari investors' participation could have an impact on national security.

Will the US Treasury look into Elon Musk's purchase of Twitter?

Elon Musk created holding companies to pay for the purchase of Twitter. With a combined investment of $1.9 billion, Saudi Prince Alwaleed bin Talal and his Kingdom Holding Company become Twitter's second-largest shareholder. The biggest investor is Qatar Investment Authority, the country of Qatar's sovereign wealth fund.

The CFIUS, which is presided over by Treasury Secretary Janet Yellen, has the authority to prohibit foreign ownership in significant American corporations. According to Senator Chris Murphy, the terms might grant non-foreign parties access to private information, according to a November 2 Washington Post article.

Leaving aside the massive databases of information that Twitter has gathered about Americans. There is a serious national security risk associated with any possibility that Twitter's foreign ownership may lead to more censorship, false information, or political violence.

It is unclear, though, whether Treasury's CFIUS representatives are aware of the conditions allowing information privileges to significant foreign investors. Additionally, these review requests are generally common and don't always result in thorough investigations. Experts have also noted that an examination of the potential effects on national security is unlikely to have an impact on Elon Musk's acquisition of Twitter.

Elon Musk, who just assumed control of Twitter as interim CEO, has fired some executives, including CEO Parag Agrawal, and is planning to remove more. Additionally, Musk has decided to charge $8 per month for the Twitter Blue subscription for subscribers in the United States. However, the cost will be modified in accordance with other nations' purchasing power parity.

Coming to Twitter: Dogecoin

Elon Musk, a well-known dogecoin supporter, had previously intimated on Twitter that DOGE would be supported. Although he also contributed $500 million to the Twitter transaction, CEO "CZ" of Binance thinks Twitter should support more cryptocurrencies than only DOGE and BNB.

The price of Dogecoin is currently $0.1284, down 9.5% over the last 24 hours. However, after Elon Musk bought Twitter, the price of DOGE increased by almost 130%.

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