- The SEC threatened to take legal action against Elon Musk in the next 48 hours.
- The regulator demanded monetary settlement in exchange for no legal action.
- John Deaton indicated that the SEC has ended many small businesses in the US.
The United States Securities and Exchange Commission (SEC) has issued a settlement demand to Tesla and SpaceX CEO Elon Musk, threatening legal action unless he complies within 48 hours. The move has drawn widespread criticism from the crypto community, with many calling out SEC Chair Gary Gensler for what they describe as irrational and politically motivated tactics.
Ripple Advocate Defends Musk
John E. Deaton, lawyer and Ripple-advocate, and former Senate candidate, voiced concerns over the SEC’s actions. In a post on X (formerly Twitter), Deaton questioned how smaller businesses could survive such aggressive regulatory moves when even a billionaire as Musk faces significant pressure. He highlighted that without Musk’s extensive legal resources, smaller firms would likely struggle to defend themselves.
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Deaton also referenced the $150 million Ripple and its CEO Brad Garlinghouse spent fighting the SEC. He warned that most companies lack the financial means to withstand such prolonged legal battles, leaving them vulnerable to regulatory overreach.
Musk’s Legal Team Hits Back
Elon Musk’s attorney, Alex Spiro, accused the SEC of harassment and politically motivated behavior. He stated that the regulator is less concerned with uncovering the truth and more focused on a campaign targeting Musk and entities connected to him, including Neuralink. Spiro described the SEC’s actions as part of a pattern aimed at undermining Musk’s reputation.
Leadership Shake-Up at the SEC
Earlier this month, pro-crypto President-elect Donald Trump named Paul Atkins, a former SEC Commissioner, to serve as the new SEC Chair, replacing Gary Gensler. Atkins is expected to lead a shift toward a more balanced regulatory approach, joined by current Commissioners Hester Peirce and Mark Uyeda. Brad Garlinghouse previously remarked that this team could bring common sense‘ back at the helm of the SEC.
Adding to the shake-up, Trump also appointed David Sacks, a former PayPal executive, as the White House AI and Crypto Czar. Sacks will oversee the development of a regulatory framework for digital assets, a move crypto proponents hope will bring clarity to the industry.
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