The XRP community is in upheaval as the SEC (United States Securities and Exchange Commission) initiates a new lawsuit against Elon Musk concerning his 2022 purchase of X (formerly Twitter). The SEC has requested a San Francisco federal court to compel Musk to cooperate with their ongoing investigation into this acquisition.

Elon Musk acquired X for a substantial $44 billion in 2022, prompting the SEC to investigate potential violations of federal securities laws. 

SEC Initiates Legal Action Against Elon Musk

The SEC scheduled a testimony for Musk on September 15 to facilitate the investigation at their San Francisco office. However, Musk did not appear for this testimony. The SEC offered him another opportunity to testify near his Texas residence, but this also proved unsuccessful, leading to the filing of the lawsuit.

In light of the SEC’s actions, Elon Musk responded by expressing his perspective on the situation. He strongly advocated for a comprehensive overhaul of regulatory agencies, stressing the importance of establishing a commission that can take punitive measures against individuals who misuse their regulatory authority for personal and political gain.

Furthermore, Musk’s lawyer, Alex Spiro, revealed in an email to the Wall Street Journal (WSJ) that the SEC has obtained testimony from Musk on several occasions.

Responses from the XRP Community Emerge

The XRP community has had mixed reactions to these developments. Attorney John Deaton, founder of Crypto-Law US, suggested that the lawsuit could be politically motivated, asserting that the SEC has become a tool to protect established interests and the status quo.

This isn’t political at all, right @elonmusk? What a joke the @SECGov has become. The SEC has become a weapon used to protect the incumbents and the status quo. https://t.co/HgwSncWQKq

— John E Deaton (@JohnEDeaton1) October 5, 2023

Prominent XRP influencer Sherrie speculated that the lawsuit could have a connection to Musk’s refusal to provide former US President Donald Trump’s personal data on the X platform.

According to Sherrie, Musk’s refusal to surrender Trump’s data may have upset “someone,” forcing the authorities to find a logical reason to charge him.

This isn’t political at all, right @elonmusk? What a joke the @SECGov has become. The SEC has become a weapon used to protect the incumbents and the status quo. https://t.co/HgwSncWQKq

— John E Deaton (@JohnEDeaton1) October 5, 2023

However, former SEC official Marc Fagel dismissed Sherrie’s speculation as “tinfoil hat stuff,” a term used to describe conspiracy theories.