Elon Musk calls for overhaul of SEC amid lawsuit

Elon Musk called for an overhaul of the Securities and Exchange Commission (SEC) on Thursday, the same day the agency sued him in an effort to compel him to testify about his purchase of Twitter, the platform now known as X.

“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,” Musk wrote on X in response to news of the SEC suing him. 

The SEC is accusing Musk of failing to comply with a subpoena as part of its investigation over his purchase of Twitter last year. The agency had launched its probe into the billionaire’s purchase of Twitter in 2022 and was tasked with investigating whether any person or entities violated any federal security laws.

“The SEC has followed all appropriate administrative steps required in seeking Musk’s testimony. In the face of Musk’s blatant refusal to comply with the SEC’s subpoena, the SEC now asks the Court to intervene and compel Musk’s compliance,” the SEC wrote in a filing.  

Musk had previously appeared for two half-day sessions for a testimony, but the SEC says he has declined to testify again. The SEC has requested additional testimony because it has received “thousands of new documents,” including “hundreds of new documents produced by Musk,” according to the lawsuit.

“Musk’s ongoing refusal to comply with the SEC’s administrative subpoena is hindering and delaying the SEC staff’s investigation to determine whether violations of the federal securities laws have occurred. Accordingly, the SEC now asks the Court to compel Musk to appear for investigative testimony,” the SEC wrote.