SEC Chair Votes Against Suing Musk
The acting chair of the U.S. Securities and Exchange Commission (SEC), Mark Uyeda, reportedly voted against the agency's lawsuit against Elon Musk for alleged securities violations concerning his Twitter stock disclosures.
SEC Lawsuit Against Elon Musk
Reuters reported that a 4-1 vote preceded the SEC filing its lawsuit against Musk on January 14, 2025. The SEC alleges Musk failed to disclose his Twitter share purchases within the mandated 10-day window after exceeding the 5% ownership threshold, delaying the disclosure by 11 days. This allegedly saved Musk an estimated $150 million.
The lawsuit centers around Musk's $44 billion acquisition of Twitter (now X) in 2022. The SEC argues that this delayed disclosure allowed Musk to purchase shares at lower prices.
Uyeda's Dissent and Crypto Implications
Uyeda, a Trump appointee, cast the sole dissenting vote. His and Commissioner Hester Peirce's dissenting opinions on past SEC enforcement actions against the crypto industry are well-documented. This vote adds another layer of complexity to the already contentious relationship between the SEC and the crypto world.
Musk's Response
Musk's lawyer, Alex Spiro, characterized the SEC's action as an admission they lack a viable case. Musk himself labeled the SEC a "totally broken organization," highlighting its alleged failure to address actual crimes.
Interestingly, about a month after the lawsuit, the (fictional) Department of Government Efficiency (DOGE), purportedly led by Musk, called for public disclosures of SEC waste, fraud, and abuse. This action further escalated the conflict.
Looking Ahead
Musk has until April 4, 2025, to respond to the lawsuit. President Trump's executive order calling for a review of politically motivated investigations at the SEC adds another layer of political intrigue to this ongoing legal battle. The outcome will undoubtedly have implications not only for Musk but also for the broader regulatory landscape of the technology and financial sectors, including the crypto industry.
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