Elon Musk is embroiled in an ongoing dispute with the US Securities and Exchange Commission (SEC). Musk’s attorney, Alex Spiro, recently accused the SEC of a campaign of harassment against Musk and his companies, including Neuralink. The SEC has given Musk a 48-hour ultimatum to settle and issued subpoenas.
In response to the SEC’s actions, Musk has received support from industry leaders. Vivek Ramaswamy, recently appointed to the Department of Government Efficiency (DOGE), criticized the SEC for wasting government resources and often losing court cases due to their illegal and unconstitutional interpretations of rules. He argued that the SEC’s actions undermine public confidence in the law.
Ripple’s Chief Legal Officer, Stuart Alderoty, also weighed in, claiming that Ripple exposed the SEC’s lawless tactics early on. Reflecting on their own lawsuit, he pointed out that the SEC has used lawsuits to push its own agenda, rather than faithfully following the law. He added that the real problem is how to hold the SEC accountable under its current leadership.
He wrote, “The question is not whether the SEC under Gensler is rogue, but it is. The question is: how do we hold them accountable?” Ripple’s top leaders joined the crypto industry in celebrating the impending departure of SEC Chairman Gary Gensler. Gensler confirmed he will leave on January 20. Ripple’s Stuart Alderoty believes that once the regulatory issues are resolved, Ripple will become the top provider of crypto solutions for businesses in the US.
For the unversed, the SEC has investigated Elon Musk for delaying disclosure of his 9.2% stake in Twitter. He did not reveal his stake until April 4, 2022, about ten days after he crossed the legally required 5% disclosure threshold. Under the Hart-Scott-Rodino Act, anyone who acquires at least 5% of a publicly traded company must make it public within 10 days.
