Elon Musk Advocates for Reform of US SEC and DOJ Following Legal Tangle

Following a lawsuit by the U.S. Securities and Exchange Commission (SEC) regarding his $44-billion purchase of the platform now known as X (formerly Twitter) last October, Elon Musk has advocated for a substantial reform of the regulatory body.

The SEC is investigating potential violations of securities laws in Musk’s acquisition. On October 5, the SEC initiated a court filing in California to ensure Musk’s compliance with an earlier subpoena.

Reacting on X that day, Musk implied that it’s the SEC and the U.S. Department of Justice (DoJ) that ought to be under scrutiny.

“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.”

In response to a post detailing actions the U.S. government has taken against his companies, Musk said, “Can’t wait for this to happen.” Asked about the odds of such an investigation, Musk confidently stated, “I estimate the probability at 100%.”

Documents reveal that the SEC summoned Musk in May 2023, with a scheduled testimony in San Francisco on September 15, which Musk had initially accepted. However, a sudden change of heart saw Musk informing the SEC of his non-attendance, citing several “spurious objections,” as characterized by the agency.

The SEC shared that they made genuine efforts to reschedule Musk’s testimony but faced a firm decline from him. The agency believes Musk’s reasons lack legal basis.

“None of Musk’s objections has any legal validity, and he has no justifiable excuse for his non-compliance with the SEC’s subpoena,” emphasized the regulator.

Musk Continues His Fondness for Dogecoin on X The platform X is a pivotal space for the crypto community, where debates about the SEC’s stance on the sector frequently arise.

While Musk’s plans for incorporating cryptocurrency features in X remain elusive, he did hint at incorporating Dogecoin as a payment method in April 2022. However, he has clarified that neither he nor X intends to introduce a crypto token.

As his dealings with the SEC intensify, Musk has become more cautious in his Dogecoin endorsements.

In a May 24 interview, he gave a light-hearted remark about Dogecoin but was quick to clarify that his words shouldn’t be perceived as financial counsel.

“I’m not advising anyone to buy crypto or bet the farm on Dogecoin or anything like that. But Dogecoin is my favorite cryptocurrency because it has the best humor and has dogs.”

In the same month, Musk tried to extricate himself from a lawsuit in Manhattan alleging he used a pyramid strategy to boost Dogecoin.

The outcome of Musk’s dealings with the SEC may significantly influence his digital endeavors. The broader ramifications on the tech and financial sectors are still unfolding.