Mark Uyeda, the acting SEC chair, was reportedly the only commissioner who opposed suing Musk over his delayed disclosure of his stock purchase in Twitter

This decision comes at a time when the SEC is dealing with shifting priorities and challenges within the agency.

The U.S. Securities and Exchange Commission (SEC) faced internal divisions as it moved to sue Elon Musk, with one commissioner reportedly breaking from the majority in opposing the legal action, according to a report by Reuters.

This decision comes at a time when the SEC is juggling shifting priorities and challenges within the agency, the report notes.

The vote on whether to sue Musk took place behind closed doors, with acting SEC chair Mark Uyeda breaking from the other commissioners who voted in favor of pursuing legal action against the tech billionaire.

The SEC formally sued Musk in January 2025 for allegedly violating federal securities laws by failing to disclose his acquisition of more than 5% of Twitter’s stock in 2022. This failure to file the necessary report allowed Musk to purchase additional shares at artificially low prices, potentially saving him millions of dollars.

The SEC has been rolling back its actions against crypto firms, pausing enforcement actions against companies such as Ripple, OpenSea, and Coinbase. This move has sparked discussion about the agency’s changing priorities.

Discussing the agency’s internal divisions, Uyeda's opposition to suing Musk is noteworthy given the high profile of the case and the heated debate surrounding it.

Highlighting Trump Link

Musk’s involvement in the Trump administration has also been a subject of interest. He was appointed by former President Donald Trump to lead the newly established Department of Government Efficiency, a role designed to streamline regulatory practices.

Musk’s relationship with Trump continues to be a subject of speculation, with some noting a potential imbalance in regulatory focus considering the vast scope of issues that fall under the SEC’s purview.

The SEC’s case against Musk pitches this legal battle in the context of the ongoing discussion about how securities laws apply to tech executives, especially in the evolving digital asset landscape. The outcome of this lawsuit could have implications for future regulatory actions in the U.S.