Let $\pi$ be the regular representation of $G=\operatorname{SL}_2(R)$ on $L^2(G)$. Let $M$ be the (commutative) convolution algebra generated by measures of the form $m_K * \delta_g * m_K$ where $m_K$ is Haar measure on $K$ where $K=\operatorname{SO}(2)$. Define a homomorphism $\pi'$ from $M$ to the bounded operators on $L^2(G)$ by $\pi'(\mu)= \int \pi(g) d\mu(g)$. Then the norm closure of the image of $\pi'$ is a commutative C*-algebra of operators on $L^2(G)$. What is the spectrum of this algebra? In other words, what are the nontrivial multiplicative linear functionals?
Each character pulls back via $\pi$ to a character on $M$, and the characters of $M$ are well-known. They correspond to irreducible representations of $G$ with K-fixed vectors. The spherical principal series appear in the decomposition of $\pi$ into irreducibles, but the complementary series do not. Is it possible for a character associated to a complementary series repn to be the pull-back of a character on the closure of $\pi'(M)$?