Elon Musk is facing a final battle with outgoing Securities and Exchange Commission Chairman Gary Gensler. Musk revealed on his social media platform X that the SEC is demanding that he agree to an undisclosed fine to settle charges related to his initial purchases of shares in what was then Twitter in 2022. In a letter posted by Musk, his attorney Alex Spiro informed Gensler that the SEC has given Musk 48 hours to agree to the fine for failing to disclose his purchases of Twitter shares, or face multiple charges. The SEC and Gensler have not responded to requests for comment.
The letter states that SEC staff were directed to demand the fine, with charges imminent if Musk does not comply. Musk has refused to agree to the demand, citing the agency’s motivations as being against him and his associated companies. The letter also mentions that Spiro was subpoenaed to give testimony, which he declined, and an investigation into another company of Musk’s, Neuralink, has been reopened.
Musk’s clashes with the SEC date back several years, intensifying recently as he challenges the agency’s oversight of his investor communications. Gensler, a vocal critic of cryptocurrencies, in which Musk is heavily involved, has contributed to the tension. Musk previously settled with the SEC in 2018 over misleading tweets about taking Tesla private, resulting in fines and restrictions on his social media activity. Musk’s recent purchase of Twitter shares and subsequent acquisition of the company, now known as X, has sparked new scrutiny from the SEC.
The dispute extends to disagreements over cryptocurrency regulation, with Gensler advocating for SEC oversight while Musk supports the industry. Gensler has criticized cryptocurrencies as prone to fraud, contrasting with Musk’s endorsement. The impending change in SEC leadership from Gensler to Paul Adkins, nominated by President Trump, adds uncertainty to the situation.
