Elon Musk, the CEO of multiple high-profile companies including Tesla and SpaceX, has called for a “comprehensive overhaul” of the United States Securities and Exchange Commission (SEC). This call for reform comes shortly after the SEC filed a lawsuit against Musk, alleging that he failed to testify in an investigation related to his $44-billion acquisition of Twitter (now known as X) in October of the previous year.
The SEC is conducting an inquiry to determine whether Musk’s purchase of Twitter triggered securities laws. In a filing dated October 5, 2023, the regulator sought to compel Musk to comply with a subpoena it had previously issued. This legal action by the SEC marks the latest development in an ongoing dispute between Musk and the regulatory body.
In response to the SEC’s actions, Musk took to the X platform to express his views on the matter. In a post, he suggested that not only the SEC but also the U.S. Department of Justice (DOJ) should be subjected to an investigation.
![Musk Blasts SEC, DOJ in Lawsuit Over Twitter Testimony image 37](https://i0.wp.com/nosisnews.com/wp-content/uploads/2023/10/image-37.png?resize=802%2C850&ssl=1)
![Musk Blasts SEC, DOJ in Lawsuit Over Twitter Testimony image 37](https://i0.wp.com/nosisnews.com/wp-content/uploads/2023/10/image-37.png?resize=802%2C850&ssl=1)
"A comprehensive overhaul of these agencies is sorely needed, along with a commission to take punitive action against those individuals who have abused their regulatory power for personal and political gain," Musk stated.
X (twitter)
In another post, Musk expressed his anticipation of such an overhaul, responding positively to a comment outlining the various legal actions taken by the U.S. government against companies led by Musk.
When an X user asked if he believed such an investigation would actually occur, Musk responded confidently, stating, “I estimate the probability at 100%.”
According to the SEC’s filing, it had subpoenaed Musk in May 2023 and scheduled a testimony session at its San Francisco office for September 15. Musk initially agreed to comply with the subpoena. However, two days before the scheduled appearance, he informed the SEC that he would not testify and raised several objections, which the SEC characterized as “spurious.”
The SEC stated that it attempted to negotiate an alternative time and location for Musk’s testimony, acting in good faith, but Musk categorically refused to cooperate.
The regulatory body also asserted that Musk’s objections had no legal merit, and he had no justifiable excuse for his non-compliance with the SEC’s subpoena.
It is worth noting that X has become a prominent social media platform for the cryptocurrency community. Discussions related to the SEC’s regulatory approach to the cryptocurrency industry have been a frequent topic of conversation on the platform.
Elon Musk has recently been exploring the integration of cryptocurrency payments on X. In August, he obtained a currency transmitter license from Rhode Island’s regulatory authorities, signaling his interest in expanding cryptocurrency-related functionalities on the platform.
Musk’s contentious relationship with the SEC dates back several years. In a December 2018 interview with 60 Minutes, he publicly expressed his lack of respect for the regulatory body, stating, “I do not respect the SEC. I do not respect them.”
“I have no respect for the SEC''
— Tesla Owners Silicon Valley (@teslaownersSV) October 5, 2023
Elon Musk
pic.twitter.com/a46zuKXb1X
The ongoing legal dispute between Musk and the SEC continues to draw attention and scrutiny, reflecting the complex and evolving relationship between regulators and high-profile figures in the cryptocurrency and technology industries.
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