Elon Musk's SEC Feud Sparks Outrage: Ripple, Ramaswamy, Palihapitiya Slam Corrupt Tactics
Elon Musk’s SEC battle has drawn criticism from Ripple’s legal chief, Vivek Ramaswamy, and Chamath Palihapitiya, who accuse the regulator of corruption, coercion, and partisan overreach.
SEC Faces Backlash Over Elon Musk Case: Ripple’s Legal Chief Weighs in
Elon Musk’s ongoing battles with the U.S. Securities and Exchange Commission (SEC) have sparked fresh debates over the agency’s enforcement tactics, drawing commentary from political and business figures including Ripple Chief Legal Officer Stuart Alderoty, venture capitalist Chamath Palihapitiya, and politician Vivek Ramaswamy.
Musk shared a letter on his social media platform X on Thursday from his attorney, Alex Spiro, accusing the SEC of a years-long harassment campaign against Musk and his companies.
Spiro claimed the SEC has issued a 48-hour settlement ultimatum, threatening fines or charges, allegedly driven by higher-level directives.
The letter also referenced a new SEC investigation into Neuralink and a subpoena against Spiro under coercive threats, demanding clarity on whether the SEC’s actions stem from internal or external influences like the White House.
Palihapitiya weighed in on the broader implications of SEC actions, criticizing the agency’s use of taxpayer resources. He wrote on X:
This is ridiculous. Why does the SEC think they can continue to waste government resources (ie our money) so uselessly?!
Without a reasonable check and balance, partisan bureaucrats will continue to use lawfare to create foot faults and slow down people they don’t agree with.
“And if you don’t happen to have the resources Elon has, you will be screwed. I hope people appreciate how corrupt this all is,” he warned.
Ramaswamy, recently appointed alongside Musk to lead the Department of Government Efficiency (DOGE), accused the SEC of undermining public trust.
“Here’s the worst part: the SEC regularly loses case after case in federal court because they contort their rules in illegal & unconstitutional ways,” Ramaswamy wrote, adding that their actions weaken faith in the rule of law.
Ripple’s chief legal officer joined the discussion, replying to Ramaswamy:
Ripple exposed the SEC’s lawless tactics early on. As the court said in our case: ‘The SEC is adopting its litigation positions to further its desired goal, not out of a faithful allegiance to the law.’ The question isn’t whether the SEC under Gensler is rogue—it is. The question is how we hold them accountable?
Meanwhile, a shakeup at the SEC is underway as Gary Gensler prepares to step down as Chair, signaling a potential shift in the agency’s regulatory approach.
Gensler, known for his hardline stance on cryptocurrency and financial regulations, will leave his post in January 2025. His successor, Paul Atkins, is a former SEC commissioner and a proponent of more lenient regulation, particularly in the crypto space.
Atkins’ nomination by President-elect Trump has sparked debate, with industry insiders anticipating a friendlier environment for digital assets while critics warn of reduced oversight. The transition could redefine the SEC’s priorities, pending Senate confirmation of Atkins.