What Musk is doing with Twitter's blue checks violates rules set up by the Federal Trade Commission (FTC).
Musk has 'gifted' checks to celebrity Twitter accounts and other influencers without first seeking permission. But the blue checks act like endorsements of Twitter Blue, the new paid program that charges $8 for premium access and status on the platform. False endorsements violate FTC rules.
https://www.commondreams.org/news/blue-check-twitter-ftc-violation