Elon Musk Fires Back at SEC, Calls for Complete Overhaul Amid Lawsuit Over Twitter Acquisition
Summary:
Elon Musk calls for a total restructuring of the U.S. Securities and Exchange Commission (SEC) and the U.S. Department of Justice after SEC sued him for failing to testify in an investigation related to his $44 billion acquisition of Twitter (now called X). Responding to an inquisition on X, Musk declared a 100% possibility of the probe occurring. Despite initial agreement, Musk abruptly backed out of testifying for the SEC, leading to the lawsuit. The X platform is significant in the cryptocurrency domain, where Musk has been attempting to incorporate cryptocurrency payments after receiving a license from Rhode Island's regulator.
Hours after a lawsuit was filed against him by the U.S. Securities and Exchange Commission (SEC), Elon Musk demanded for a total revamp of the agency. The SEC's legal action follows Musk's refusal to testify in an investigation related to his acquisition of Twitter (now called X) in the prior year, a deal worth $44 billion. The SEC is scrutinizing to determine if this acquisition breached securities laws. By October 5th, the regulator had petitioned a California District Court, attempting to enforce a previous SEC subpoena. In response, Musk questioned the authorities of the SEC and the U.S. Justice Department on the same day on an X post, suggesting that they should be scrutinized instead. According to him, a thorough restructuring of these agencies is essential and a panel must be formed to penalize those who exploit their power for personal and political benefits.
An X user queried whether such an investigation could occur, to which Musk confidently gave a probability of 100%. The SEC revealed it had summoned Musk for his testimony way back in May 2023, in their San Francisco office on September 15th. Though Musk initially agreed to this, he abruptly informed the SEC, two days prior, that he would not attend. The SEC highlighted that Musk made various unjustified objections, and they had attempted to negotiate another date and venue for his testimony in good faith. However, Musk flatly refused. The SEC furthermore rebuffed his objections as having no legal basis.
The X platform is renowned among cryptocurrency enthusiasts, one hot debate being over the SEC's regulatory approach towards the crypto domain. It was also revealed that Musk has been attempting to introduce cryptocurrency payments on X recently. He has been cleared for a currency transmitter license from Rhode Island's regulatory in late August. Musk's disagreement towards the SEC is not new, having dismissed the regulator in an interview with 60 Minutes in December 2018.
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Published At
10/6/2023 12:21:36 AM
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