Elon Musk is taking his final stand against outgoing SEC Chairman Gary Gensler, as tensions between the billionaire and the regulatory agency reach a boiling point. Musk revealed on his platform, X (formerly Twitter), that the SEC is pressuring him to settle charges related to his 2022 purchase of Twitter shares by paying an undisclosed fine.
The Latest SEC Demand
Musk shared a letter from his attorney, Alex Spiro, sent to Gensler, alleging that the SEC had given Musk 48 hours to agree to the fine or face multiple charges. The dispute centers on Musk’s alleged failure to disclose his initial stock purchases in Twitter, now X, within the legally required timeframe.
In a mockingly sarcastic post, Musk wrote:
“Oh Gary, how could you do this to me?”
Oh Gary, how could you do this to me? 🥹 pic.twitter.com/OoooQI77ZS
— Elon Musk (@elonmusk) December 12, 2024
The SEC has declined to comment on the investigation, citing agency policy.
The Allegations
The letter posted by Musk accuses the SEC of pursuing a politically motivated campaign against him and his companies. It also claims that:
- The SEC staff implied their actions were directed by higher-ups, potentially involving the White House.
- Spiro was subpoenaed to testify but refused.
- The SEC reopened an investigation into another Musk venture, Neuralink, raising further suspicions about the agency’s intentions.
Spiro wrote in the letter:
“The commission is not motivated to seek the truth but is instead engaged in an improperly motivated campaign against Mr. Musk and the individuals and companies associated with him.”
A History of SEC Clashes
Musk’s tumultuous relationship with the SEC dates back years. In 2018, Musk and Tesla agreed to a settlement with the agency after Musk tweeted he had “funding secured” to take Tesla private. The settlement required:
- A $20 million fine from both Tesla and Musk.
- Musk to relinquish his Tesla chairman title, while remaining CEO.
- Approval of Musk’s tweets regarding Tesla’s material events by company officials.
Musk later claimed he agreed to the settlement to prevent Tesla, then in financial trouble, from losing critical funding.
The current charges focus on Musk’s April 2022 purchase of 9% of Twitter shares, which he allegedly failed to disclose within the required 10 days after surpassing the 5% ownership threshold, as stipulated by securities laws. The SEC questioned Musk about the delay but didn’t act until now.
SEC vs. Musk on Crypto Regulation
Beyond Twitter shares, Musk and Gensler have frequently sparred over the regulation of cryptocurrencies. Musk is a vocal advocate for crypto, while Gensler has labeled it as:
“Ripe with fraud, scams, and abuses in certain applications.”
Musk’s investment in cryptocurrencies like Dogecoin has further spotlighted the regulatory debates between the two.
What’s Next for the SEC?
With President-elect Donald Trump set to take office, Gensler’s time as SEC chairman is nearing its end. Trump has nominated Paul Atkins, a crypto-friendly advocate and co-chairman of the Digital Chamber’s Token Alliance, to lead the agency. Atkins’ leadership is expected to usher in a pro-crypto stance, possibly easing tensions for Musk in the future.
Final Thoughts
Elon Musk’s battle with the SEC over Twitter shares is yet another chapter in his long history with the regulatory body. While Musk stands firm against Gensler’s demands, the imminent change in SEC leadership could shift the dynamic.
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