The U.S. Securities and Exchange Commission (SEC) is one of the regulatory organizations that billionaire Elon Musk has called for a "comprehensive overhaul" of. The CEO of Tesla and SpaceX also stated the necessity for a panel to impose sanctions on those who utilize their regulatory authority for personal or political advantage.
Elon Musk claims that regulatory agencies need to be completely overhauled.
Elon Musk, the CEO of Tesla and SpaceX, has demanded a comprehensive reform of regulatory agencies, particularly the Securities and Exchange Commission (SEC) of the United States. After the securities regulator filed a lawsuit against him to compel him to provide a testimony on the purchase of the social media site Twitter, now known as X, he made this call.
The Tesla CEO responded in response to X user Mario Nawfal, who had posted the information about Musk being sued by the SEC:
A commission to take disciplinary action against those who have misused their regulatory power for personal and political benefit is urgently needed, along with a thorough revamp of these organizations. I'm eager for this to occur.
Further, Musk was questioned by another X user: "Will it ever happen?" The millionaire said, "I put the likelihood at 100%."
The SEC disclosed on Thursday that it has subpoenaed Musk as part of an enforcement proceeding. The regulator is asking the court to get an order compelling the Tesla CEO to appear at an inquiry over his acquisition of Twitter. The SEC has previously filed a lawsuit against Musk. After he attempted to take Tesla private in 2018, the securities regulator filed a lawsuit against him for securities fraud. Musk and Tesla each paid $20 million in fines as part of a settlement agreement with the SEC. The billionaire also agreed to step down as Tesla's board chairman.
Musk has repeatedly expressed his displeasure with the SEC. In a December 2013 interview with "60 Minutes," he made it clear that he abided by the settlement deal with the SEC out of respect for the legal system. I do not respect the SEC, he emphasized at the time. I have no respect for them.
A revamp of the SEC has been demanded by a number of US legislators. The SEC Stabilization Act was sponsored by Congressman Warren Davidson (R-OH). In the proposed legislation, the SEC chairman's position would be eliminated, and a sixth commissioner would be added, "so that there would be no more than three from any one political party," the congressman reportedly revealed. Furthermore, a number of people, including former SEC internet enforcement chief John Reed Stark, have predicted a potential change inside the SEC in the event of a Republican winning the presidency.
Do you concur with Elon Musk that the SEC and other regulatory organizations urgently require a complete overhaul? Comment below with your thoughts and let us know.