In technology headlines today, Elon Musk has come up with a single word to describe the persecution he sees himself enduring as a target of the US Securities and Exchange Commission.
Reuters reports Musk is calling the agency’s activity an “unrelenting” investigation.
The accusation came in a letter to U.S. District Judge Alison Nathan in Manhattan,” writes an unnamed Reuters reporter this morning, in a widely syndicated coverage piece. “Tesla on Feb. 7 disclosed receiving a subpoena from the SEC about its compliance with that settlement, which required that Musk obtain advance approval for some tweets.”
It’s true that Musk is under a lot of scrutiny these days…
Reportedly, his characterization of the SEC stems from a 2018 settlement over public comments by Musk about his ability to take his electric car company private with ($420) funding.
Musk also faces a lot of criticism around his impact in the cryptocurrency market – after he went on Saturday Night Live pumping Dogecoin (DOGE), the Shiba Inu digital currency gained value. That’s probably part of why regulators now want to pre-approve Musk’s tweets – because one tweeted word from the South-Africa born mogul can move markets so fundamentally.
In Reuters coverage, it’s revealed how Musk’s counsel contends that the SEC is trying to “chill (Musk’s) exercise of First Amendment rights.”
To be fair, Musk isn’t the only one in the SEC’s sights. In an ongoing battle with Ripple, the SEC seeks to prove that the company’s XRP token constitutes an unregistered security. CEO Brad Garlinghouse has had his own fierce criticism of the SEC on this score, and some claim that Jay Clayton’s move to Three Rivers shows that SEC officials have an ax to grind with Ripple, and not with similar blockchains Bitcoin and Ethereum.
As for Musk, after presiding over the mega-rally of his Tesla company’s stock, his power in the markets and beyond has only grown
The SEC has its regulatory pulpit, but Musk has the public ear.
Keep watching to see what comes out of this conflict.
