Elon Musk is at the center of a high-profile legal dispute with the U.S. Securities and Exchange Commission (SEC). The SEC has issued a 48-hour ultimatum for Musk to settle, and recently served subpoenas to Musk and his companies, including Neuralink. In response, Musk’s lawyer, Alex Spiro, has accused the SEC of waging a harassment campaign against his client, adding fuel to an already tense situation.
Musk’s legal battle has sparked growing support from industry leaders, who are increasingly critical of the SEC’s actions. Vivek Ramaswamy, recently appointed to the Department of Government Efficiency (DOGE), strongly condemned the SEC for its legal overreach. Ramaswamy argued that the SEC is wasting government resources on fruitless litigation and losing court cases due to unconstitutional rule interpretations. He stressed that the agency’s actions are eroding public trust in the legal system, a sentiment that has gained traction across the business world.
Ripple’s Chief Legal Officer, Stuart Alderoty, also weighed in, drawing parallels between Musk’s case and Ripple’s ongoing legal fight with the SEC. Alderoty noted that Ripple was among the first to expose the SEC’s aggressive and, at times, lawless tactics. He pointed out that the SEC, under Chairman Gary Gensler, has repeatedly used litigation to push its own agenda rather than follow established legal principles. Alderoty posed a critical question: “How do we hold the SEC accountable under its current leadership?” This question has gained urgency as the crypto community, including Ripple’s leadership, celebrates Gensler’s upcoming departure on January 20.
The SEC’s scrutiny of Musk began after he delayed the disclosure of his 9.2% stake in Twitter. Musk only revealed his stake on April 4, 2022, a full ten days after surpassing the 5% disclosure threshold required by the Hart-Scott-Rodino Act. This act mandates that any investor acquiring 5% or more of a public company’s stock must disclose their holdings within ten days.
Also Read: Elon Musk’s ‘Doge Father’ Posts Ignite 5% Dogecoin Rally: Is DOGE Heading to $0.50?
As the dispute intensifies, Musk and his supporters are hoping for a favorable resolution that could set the stage for his continued influence in the tech and financial sectors, free from what they describe as SEC overreach.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
About The Author
