Acting SEC Chair Mark Uyeda, has reportedly opposed legal action against Elon Musk regarding his alleged failure to disclose his Twitter stock purchases on time.  

According to a report by Reuters, the U.S. Securities and Exchange Commission (SEC) held a vote among its five commissioners before deciding to sue Musk. Four commissioners supported the lawsuit, while Uyeda, appointed acting chair by former President Donald Trump on Jan. 20, was the sole dissenting vote.  

SEC Commissioner Hester Peirce joined three others in favor of suing Elon Musk. Both Uyeda and Peirce have previously challenged the SEC’s aggressive enforcement actions, particularly against the crypto industry under former Chair Gary Gensler.  

Musk’s $44 billion acquisition of Twitter (now X) in 2022 triggered SEC scrutiny over whether he violated securities laws. The lawsuit, filed on Jan. 14, alleges Musk failed to disclose surpassing 5% ownership of Twitter within the required 10-day window, delaying the disclosure by 11 days. The SEC claims this allowed Musk to buy additional shares at lower prices, saving him an estimated $150 million.  

“Broken SEC”- Musk Response To SEC Lawsuit

Musk’s attorney, Alex Spiro, dismissed the lawsuit as an “admission” that the SEC lacks a strong case. Musk himself criticized the SEC on X, calling it a totally broken organization” that ignores real financial crimes.  

One month after the lawsuit, Musk’s Department of Government Efficiency (DOGE), a U.S. government agency under his leadership, began investigating the SEC. On Feb. 17, an affiliated DOGE page encouraged the public to report “waste, fraud, and abuse” within the SEC—an initiative Musk amplified to his 200+ million followers on X.  

With an April 4 deadline to respond, Musk’s legal battle with the SEC remains ongoing. Meanwhile, President Trump has issued an executive order calling for a review of what he describes as politically motivated investigations by the SEC and other federal agencies from the previous administration.