The US Securities and Exchange Commission’s former top enforcement official reportedly clashed with the regulator’s top brass before resigning last week, with part of the reason being how the agency handled cases involving those close to US President Donald Trump.
Margaret Ryan, the ex-director of the SEC’s Division of Enforcement, wanted to pursue fraud and other charges in cases involving those in Trump’s orbit, but was resisted by SEC Chair Paul Atkins and other Republican political appointees, Reuters reported on Monday, citing people familiar with the matter.
Two cases that created tension between Ryan and the SEC’s top officials involved crypto entrepreneur Justin Sun and Tesla CEO Elon Musk, both of whom have ties to Trump, with Musk serving as a special White House adviser.
Ryan resigned from the SEC on March 16 after just over six months in her role. An SEC announcement that day did not detail the reason of her resignation.
It comes as the SEC has been under increased scrutiny from Democratic lawmakers over its U-turn on crypto-related cases, as the agency under Trump has dropped or settled multiple cases launched under former SEC chair Gary Gensler.
Paul Atkins (right), pictured at his swearing-in by Donald Trump (left), has been under increased lawmaker scrutiny over his leadership of the SEC. Source: The White House
The SEC did not immediately respond to a request for comment. Ryan could not be reached for comment.
Sun and Musk cases a major source of tension
The SEC’s case involving Sun was reportedly among the cases that frustrated Ryan. The agency ended its lawsuit against Sun and three of his companies earlier this month with a $10 million settlement.
The SEC first sued Sun in March 2023, alleging that he and three of his companies sold unregistered securities and engaged in manipulative wash trading. The settlement saw Sun and his companies neither admit nor deny the SEC’s allegations.
Sun became the largest investor in the Trump family’s crypto project, World Liberty Financial, in November 2024 after buying $30 million worth of its tokens. He increased his stake to a total of $75 million in January 2025.
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An SEC enforcement official told Reuters that the case against Sun was complicated by shifting crypto guidance and pending crypto laws. It was their understanding that Ryan supported the settlement, but her signature did not appear on court documents.
Tron, a company named in the SEC’s lawsuit, did not immediately respond to a request for comment. It has previously denied commenting on pending legal matters.
The SEC’s case against Musk, filed in the final week of Gensler’s tenure, was also a sticking point for Ryan. The SEC sued Musk in January 2025, claiming he failed to disclose that he “acquired beneficial ownership” of Twitter, now X, in early 2022, allowing him to purchase shares at lower prices.
The SEC and Musk said in a joint court filing on March 17 that they were now in talks to settle the lawsuit. Both the cases against Sun and Musk were reportedly strong and had a good chance of the SEC winning in court, according to lawyers closely following the lawsuits.
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