Elon Musk has taken aim at the U.S. Securities and Exchange Commission (SEC), labeling it a “totally broken organization” after the regulatory body accused him of failing to disclose a substantial stake in X (formerly Twitter) prior to acquiring the platform.
The controversy centers on allegations that Musk’s delay in disclosing his ownership stake allowed him to purchase Twitter at a price lower than its true market value. Musk, however, dismissed these claims in a post on X, arguing that the SEC’s priorities are misplaced. He asserted that the agency focuses on minor issues while neglecting more serious crimes that go unpunished.
The accusation has drawn mixed reactions from industry observers. Billy Markus, co-founder of Dogecoin and better known as Shibetoshi Nakamoto, ridiculed the SEC’s claims by pointing out that Musk paid $44 billion for the social media platform—far above its estimated value of $30 billion. Markus’ remarks were echoed by Peter Schiff, a chief economist and global strategist, who questioned the SEC’s motives and impact on investors. Schiff argued that while the SEC accused Musk of costing X shareholders $150 million due to delayed ownership disclosures, Musk’s actions ultimately generated billions in value for those same shareholders.
This isn’t the first time Musk has found himself at odds with the SEC. His legal team has accused the agency of engaging in “years of harassment,” particularly following his 2022 acquisition of Twitter. The tension escalated further in October 2024, when the SEC rejected Musk’s proposed settlement regarding his alleged failure to meet deposition obligations. Instead, the agency opted to pursue sanctions, intensifying the legal battle.
Musk’s high-profile critique of the SEC also coincides with his involvement in the proposed Department of Government Efficiency (D.O.G.E.), a new advisory commission designed to streamline government operations and optimize resource allocation. The commission, which has garnered significant attention ahead of Donald Trump’s upcoming inauguration, could place Musk in an even brighter spotlight as both his supporters and critics analyze his actions and influence.
The ongoing clash between Musk and the SEC raises questions about regulatory priorities and the balance of power between government agencies and influential business leaders. As Musk continues to challenge the SEC’s authority, the broader implications for corporate governance and investor protection remain to be seen.