How will President Trump handle the SEC lawsuit related to his close friend Elon Musk?

Elon Musk, the richest person in the world and known as a close friend of President-elect Donald Trump, is facing pressure from the SEC over allegations related to his chaotic takeover of Twitter. The lawsuit filed in the federal court of Washington, DC claims that Elon missed the deadline to disclose important information when buying shares of Twitter in 2022. According to the SEC, this delay caused Twitter shareholders to lose more than $150 million as they inadvertently sold their stocks before the price surged. Elon's legal team does not back down, rejecting the lawsuit as unfounded and politically motivated. But the timing of the lawsuit - just as Trump is preparing to take office - raises the question: Will Trump's loyalty to Elon affect the outcome of this matter? Elon battles with SEC: Another round This is not the first time Elon has encountered trouble with the SEC. The regulatory agency had been monitoring him in 2018 when he tweeted about taking Tesla private, claiming that he had "secured funding". That tweet caused Tesla's stock to soar and Elon to be sued for securities fraud. He settled the lawsuit by paying $20 million and resigning as chairman of Tesla. It's messy, but Elon survived. Back to Twitter. In 2022, Elon bought a large amount of Twitter stock—9% of the company—before launching his famous takeover bid. The SEC said Elon failed to file mandatory disclosure forms upon reaching the 5% ownership threshold, a move that could have let the market know about his plans. Instead, he waited another 11 days, reportedly accumulating stocks at a discount. When Elon finally disclosed his stake, Twitter's stock price surged by 27%, causing previous sellers to suffer losses. SEC's regulations are very clear: when you reach 5%, you have 10 days to file. Elon did not do so, and the agency says that was not an accident. They accuse him of gaining an unfair advantage by remaining silent. But the SEC stopped short of calling it insider trading, which some experts find surprising. Elon, of course, sees the issue differently. His lawyer, Alex Spiro, called the lawsuit a joke, saying that Elon "did nothing wrong and everyone sees that this fraud is exactly what it is." However, the SEC claims that Elon owes over $200 million to compensate for the disaster. Trump's SEC: New police chief, new regulations? Trump has selected Paul Atkins, a fierce critic of strict regulations, to lead the SEC. If Atkins is confirmed, Elon may have a more sympathetic regulatory agency overseeing his case. But that doesn't mean Trump can wave his magic wand and make the lawsuit disappear. John Coffee, a law professor at Columbia, said that any decision to dismiss the lawsuit must come from SEC commissioners, not directly from Trump. "There will be a political interpretation that the Trump administration is protecting Trump's good friend," he said. Even if this agency wants to dismiss the case, it will not happen overnight. The Senate confirmation hearing for Atkins has not even been scheduled, meaning the current SEC leadership is still in power. The political implications are huge. If the SEC dismisses the lawsuit, critics will accuse Trump of covering for Elon. But if the lawsuit continues, it risks damaging Trump's relationship with one of his most prominent allies. It's a tightrope walk, and no one knows how it will end. A case that cannot disappear The SEC lawsuit is also unusual for another reason: how long it took to get this far. It's pretty clear. The lawsuit should have been resolved within a year. Instead, it dragged on, partly due to Elon himself. In September, Elon ignored the SEC's summons to attend a SpaceX rocket launch, leaving the agency's lawyers stranded in Los Angeles. Elon offered to reimburse their travel costs—a move that the SEC found amusing. His delay only added to the tension, making an already controversial case even more complicated. However, the SEC seems determined to hold Elon accountable. The agency alleges that Elon's actions were not just paperwork oversight but a calculated move to save money. They say that filing late allowed him to buy Twitter stock at a discounted price, resulting in huge profits when the stock price skyrocketed. While the SEC has fined many other companies for similar violations - such as Alphabet Inc. paying $750,000 last year - the $200 million figure in Elon's case is unprecedented. Some experts believe that the SEC is sending a strong message by prosecuting Elon in this way. David Slovick, a former SEC lawyer, believes that the agency wants to use him as an example. "If this were any other president and defendant, this case would proceed without controversy. But because it's Trump and Elon, all bets are off." DYOR! #Write2Earn #ElonMusk $BTC {spot}(BTCUSDT)