Elon Musk is currently involved in a dispute with the U.S. Securities and Exchange Commission (SEC). Musk’s lawyer, Alex Spiro, has accused the SEC of harassing Musk and his companies, including Neuralink. The SEC has given Musk a 48-hour deadline to settle and has issued subpoenas.
In response to the SEC’s actions, Musk has received support from industry leaders. Vivek Ramaswamy, who was recently appointed to the Department of Government Efficiency (DOGE), criticized the SEC for wasting government resources and consistently losing court cases due to their illegal and unconstitutional interpretations of the rules. He argued that the SEC’s actions are undermining public trust in the law.
Stuart Alderoty, Ripple’s Chief Legal Officer, also commented on the situation, claiming that Ripple had exposed the SEC’s lawless tactics early on. Reflecting on their own court case, he pointed out that the SEC has been using litigation to further its own agenda instead of following the law faithfully. He added that the real issue is holding the SEC accountable under its current leadership.
Alderoty wrote, “The question isn’t whether the SEC under Gensler is rogue—it is. The question is how we hold them accountable?” Ripple’s top leaders, along with the crypto industry, celebrated the upcoming departure of SEC Chairman Gary Gensler. Gensler has confirmed that he will leave on January 20. Alderoty believes that once the regulatory issues are resolved, Ripple will become the leading provider of crypto solutions for businesses in the U.S.
For those unfamiliar with the situation, the SEC has been investigating Elon Musk for not disclosing his 9.2% stake in Twitter in a timely manner. He only revealed his stake on April 4, 2022, which was about ten days after surpassing the 5% disclosure threshold required by law. According to the Hart-Scott-Rodino Act, anyone who acquires at least 5% of a public company must disclose it within ten days.
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