"The Commission said X's verified accounts which carry a blue checkmark do not correspond to industry practice and negatively affect users' ability to make free and informed decisions about the authenticity of the accounts they interact with"

I think X is in the wrong here, the blue checkmark usually means the identity has been verified, in other social media, but also historic twitter.

Nowadays on X it only means that a fee has been paid, it's used for scams, some even claim to be Elon Musk or official twitter announcements, which is very ironic.