Billionaire Elon Musk has called for a “comprehensive overhaul” of regulatory agencies, which includes the U.S. Securities and Exchange Commission (SEC). The Tesla and Spacex CEO added that there needs to be a commission to take punitive action against individuals who abuse their regulatory power for personal and political gain.
Elon Musk Says Comprehensive Overhaul of Regulatory Agencies ‘Sorely Needed’
Tesla and Spacex CEO Elon Musk has called for a thorough overhaul of regulatory bodies, including the U.S. Securities and Exchange Commission (SEC). He made this call after the securities regulator sued him to force him to testify about his acquisition of social media platform Twitter, now known as X.
In response to X user Mario Nawfal, who shared the news of Musk being sued by the SEC, the Tesla CEO wrote:
A comprehensive overhaul of these agencies is sorely needed, along with a commission to take punitive action against those individuals who have abused their regulatory power for personal and political gain. Can’t wait for this to happen.
Moreover, another X user asked Musk: “Will it ever happen?” The billionaire replied: “I estimate the probability at 100%”
On Thursday, the SEC announced that it had filed a subpoena enforcement action against Musk. The regulator is seeking a court order to compel the Tesla boss to attend an investigative testimony concerning his purchase of Twitter. This was not the first time the SEC had sued Musk. In 2018, the securities regulator sued him for securities fraud after he attempted to take Tesla private. Musk reached a settlement with the SEC, resulting in both he and Tesla paying individual penalties of $20 million. Additionally, the billionaire consented to resign as the chairman of Tesla’s board.
Musk has frequently voiced his disapproval of the SEC. During a December 2013 interview with “60 Minutes,” he clarified that he adhered to the settlement agreement with the SEC out of respect for the justice system. He stressed at the time: “I do not respect the SEC. I do not respect them.”
Several U.S. lawmakers have called for an overhaul of the SEC. Congressman Warren Davidson (R-OH) has proposed the SEC Stabilization Act. The bill would remove the role of the SEC chairman and add a sixth commissioner, “so there would be no more than three from any one political party,” the congressman recently explained. Furthermore, various individuals have forecasted a potential transformation within the SEC in the event of a Republican president being elected, among them former SEC internet enforcement chief John Reed Stark.
Do you agree with Elon Musk that a comprehensive overhaul of the SEC and other regulatory agencies is sorely needed? Let us know in the comments section below.