The United States Securities and Exchange Commission (SEC) has demanded Tesla and SpaceX CEO Elon Musk, to comply with a settlement within 48 hours or face legal action. This development has triggered sharp criticism from the cryptocurrency community, accusing SEC Chair Gary Gensler of using politically motivated tactics against Musk.
Also Read: See Trump’s Crypto Czar’s Previous Comment About the Ripple vs SEC Case
Ripple Advocate Highlights Concerns
John E. Deaton, a lawyer and advocate for Ripple, has expressed concerns over the SEC’s regulatory approach. In a post on X (formerly Twitter), he questioned how smaller companies could withstand such aggressive enforcement if even Musk faces significant challenges.
Deaton pointed to Ripple’s legal battle with the SEC, where the company and its CEO, Brad Garlinghouse, spent $150 million in legal fees. He warned that most businesses lack the financial resources to endure prolonged litigation, leaving them vulnerable to regulatory overreach.
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Musk’s Legal Team Responds
Elon Musk’s attorney, Alex Spiro, described the SEC’s actions as harassment and politically driven. He said that the regulator seeks to chase Musk and his projects, from Neuralink to all sorts of failures. Spiro also accused the SEC of being more obsessed with Musk than with the issue of transparency.
Leadership Changes Could Shift SEC Approach
This controversy unfolds as significant leadership changes are underway at the SEC. President-elect Donald Trump recently named Paul Atkins the new SEC Chair, replacing Gary Gensler. Atkins, a former SEC Commissioner, is expected to introduce a more balanced regulatory approach, supported by Commissioners Hester Peirce and Mark Uyeda.
Brad Garlinghouse once said that he believed a new leadership team meant the agency could have a more rational attitude. In a related move, Trump appointed David Sacks, a former PayPal executive, as the White House AI and Crypto Czar. Sacks will oversee the creation of a regulatory framework for digital assets, a decision welcomed by crypto industry advocates.
Conclusion
The SEC’s actions against Musk have sparked a heated debate over regulatory practices, particularly in cryptocurrency. With new leadership set to take charge, industry stakeholders are watching closely for signs of a shift toward more transparent and fairer policies.
Also Read: SEC to Reject Solana Spot ETF Filings, Impacting Industry Landscape
Maxwell Mutuma
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. He writes extensively on topics such as blockchain, cryptocurrency, tokens, and more for top publications such as Coingape, Coin Edition, and The Coin Republic. His goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.