The interim chair of the US Securities and Exchange Commission has reportedly voted against the agency taking legal action against Elon Musk over alleged violations related to the disclosure of Twitter stock.
According to unnamed sources, it was reported on March 24 that the SEC’s five commissioners held a vote prior to the agency’s decision to file a lawsuit against the billionaire. Four commissioners supported the move, while the sole opposing vote came from Mark Uyeda, appointed as interim chair by former President Donald Trump on January 20. SEC Commissioner Hester Peirce joined three others in favor of suing Musk.
Uyeda and Peirce are recognized for their differing viewpoints regarding the SEC’s enforcement actions targeting the cryptocurrency sector during the tenure of former SEC Chair Gary Gensler.
SEC’s Lawsuit Against Elon Musk
In 2022, Elon Musk acquired Twitter for $44 billion, subsequently rebranding it to X. Following this acquisition, the SEC initiated an investigation to determine if Musk had breached any securities regulations.
On January 14, the SEC filed a lawsuit asserting that Musk failed to disclose his purchase of Twitter shares within the mandated 10-day period after exceeding the 5% ownership threshold. The agency claims that Musk postponed this disclosure by 11 days, which allowed him to continue purchasing shares at lower prices, ultimately resulting in an estimated $150 million in savings.
Elon Musk Responds to the “Flawed” Agency
Musk’s attorney, Alex Spiro, previously stated that the SEC’s move reflects an inability to substantiate a legitimate case. Musk himself labeled the SEC as a “totally broken organization” on social media, arguing that many legitimate crimes escape accountability.
About a month post-filing, the Department of Government Efficiency, a US agency associated with Musk, targeted the SEC. On February 17, a page linked to this department encouraged the public to report any instances of “waste, fraud, and abuse” concerning the SEC, a post that Musk shared with his over 200 million followers.
According to court documents, Musk has until April 4 to respond to the lawsuit. Meanwhile, President Trump has issued an executive order mandating a review of what he refers to as politically motivated investigations at the SEC and other federal agencies from the previous administration.