In a recent turn of events, Elon Musk, the CEO of various high-profile companies, including SpaceX and Tesla, has launched a scathing attack on the United States Securities and Exchange Commission (SEC) and the Department of Justice (DOJ). This comes in response to a lawsuit filed by the SEC, alleging that Musk failed to testify in their investigation related to his $44 billion acquisition of Twitter, now known as X, in October of the previous year.
The SEC’s investigation revolves around whether Elon Musk’s substantial purchase of Twitter/X shares triggered securities laws. The regulator’s latest move involves filing a lawsuit in a California District Court to compel Musk to cooperate with an earlier SEC subpoena.
In a post on X, Elon Musk didn’t hold back, advocating for a “comprehensive overhaul” of both the SEC and the DOJ. He suggested that these agencies, which are tasked with regulatory oversight, should themselves be subjected to investigation. Musk claimed that they have been abusing their regulatory powers for personal and political gain and that there should be punitive actions taken against those individuals who have allegedly abused their regulatory authority.
Elon musk’s Twitter battle and call for regulatory reform
Elon Musk’s X post drew attention to the various actions that the U.S. government has taken against companies led by him, and he expressed his anticipation of such an overhaul, stating, “Can’t wait for this to happen.” When asked about the likelihood of such a probe occurring, Musk confidently responded, “I estimate the probability at 100%.”
The SEC’s side of the story involves a subpoena issued to Elon Musk in May 2023, summoning him to provide testimony at the regulator’s San Francisco office on September 15. Initially, Musk agreed to comply, but two days before the scheduled appearance, he abruptly notified the SEC of his decision not to testify, citing several objections. The SEC deemed these objections as baseless and lacking legal merit. Despite their efforts to negotiate an alternative time and location for Musk’s testimony, they were met with his “blanket refusal.”
Notably, X is a popular social media platform within the cryptocurrency community, making the SEC’s regulatory approach to the crypto industry a hot topic of discussion. Musk has been actively exploring the integration of cryptocurrency payments on X, having obtained a currency transmitter license from Rhode Island’s regulator in late August.
This recent clash with the SEC is not the first time Musk has openly criticized the regulator. In a December 2018 interview with 60 Minutes, he stated unequivocally, “I do not respect the SEC.”
