Michaela
Mark Uyeda, the acting chair of the Securities and Exchange Commission (SEC), has reportedly been the sole commissioner to oppose suing X owner Elon Musk over his delayed disclosure of X stock.
According to a Reuters report citing three sources, four out of five SEC commissioners, including Republican Hester Peirce, have voted in favor of suing Musk. The decision was made during a closed-door vote, reflecting ongoing scrutiny by the regulator.
The regulator has been investigating Musk since 2022 for allegedly violating federal securities laws by failing to disclose his acquisition of more than 5% of X stock in a timely manner.
Under U.S. law, investors who acquire more than 5% of a company’s shares must publicly declare their holdings within 10 days. Musk reportedly delayed disclosing his X stock purchases in March 2022, allowing him to buy more shares at lower prices.
A week after the closed-door vote, the SEC filed a lawsuit against Musk in January. In the days leading up to the decision, Uyeda reportedly urged enforcement staff handling the case to sign statements affirming that the lawsuit was not politically motivated, according to two sources. However, the staff declined, citing that such pledges were not standard practice at the agency.
Uyeda and Peirce were said to have raised concerns over the $150 million the SEC sought from Musk, which included alleged unjust enrichment and a penalty. Despite these reservations, Peirce ultimately sided with the three Democratic commissioners, voting in favor of suing the billionaire entrepreneur.
Musk’s leadership at the Department of Government Efficiency (DOGE), an initiative established under President Donald Trump to streamline federal operations and reduce regulatory oversight, has been met with both support and criticism.
The agency has played a key role in recent large-scale federal workforce reductions, drawing backlash from those affected.
Meanwhile, the SEC is reportedly experiencing its own wave of departures, with hundreds of employees expected to leave the agency amid ongoing regulatory challenges.
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
