YEREVAN (CoinChapter.com) — The US Securities and Exchange Commission (SEC) held a vote on whether to sue Elon Musk for allegedly failing to disclose his Twitter stock purchases on time. According to Reuters on March 24, the agency’s five commissioners participated in the vote.
Four commissioners supported legal action, but Mark Uyeda, the acting SEC chair, voted against it. Uyeda, who was appointed as a commissioner by President Donald Trump, has previously opposed regulatory enforcement measures. SEC Commissioner Hester Peirce voted with the majority to move forward with the lawsuit.
Uyeda and Peirce have often voiced concerns about SEC enforcement actions against the crypto industry, particularly under former SEC Chair Gary Gensler. Their dissent highlights ongoing divisions within the agency regarding regulatory policies.
SEC Accuses Musk of Violating Stock Disclosure Rules
The lawsuit focuses on Musk’s $44 billion acquisition of Twitter, now X, in 2022. The SEC alleges that Musk failed to disclose his stake in the company within the 10-day requirement after surpassing 5% ownership.
Filed on January 14, the lawsuit states that Musk delayed his disclosure by 11 days. This allowed him to buy more shares at lower prices. According to the SEC, this delay saved him an estimated $150 million and may have affected market conditions for other investors.
The SEC claims Musk’s failure to comply with disclosure rules violated securities laws, leading to the decision to take legal action.
Elon Musk Calls SEC a ‘Totally Broken Organization’
Elon Musk has dismissed the allegations, arguing that the SEC’s case lacks merit. His lawyer, Alex Spiro, told Cointelegraph that the lawsuit is an “admission” by the SEC that it cannot present a stronger case against Musk.
Musk also criticized the SEC on X. He called it a “totally broken organization” and stating that “so many actual crimes” go unpunished. His public comments reflect ongoing tensions between him and US regulators.
Elon Musk’s Agency Launches Inquiry Into the SEC
Following the lawsuit, the Department of Government Efficiency (DOGE), a US government agency led by Musk, launched an initiative targeting the SEC. On February 17, a DOGE-affiliated page asked the public to report any “waste, fraud, and abuse” within the agency.
Musk shared the DOGE post with his 200 million+ followers on X, amplifying criticism of the SEC. The agency has not publicly responded to the allegations made by Musk and his supporters.
Trump Orders Review of SEC Investigations
Donald Trump recently signed an executive order calling for a review of SEC investigations. The order claims that some enforcement actions under the previous administration were politically motivated.
Meanwhile, Musk has until April 4 to respond to the SEC lawsuit, while scrutiny over the agency’s enforcement strategies continues.
