Billionaire Elon Musk, the CEO of Tesla and Spacex, has underscored the need for “comprehensive deregulation.” He made this call in response to several actions by the U.S. Securities and Exchange Commission (SEC) that he believes are severely constraining our civilization. This comes after his prediction of a “comprehensive overhaul” of the SEC with 100% probability.
Elon Musk: Comprehensive Deregulation Needed
Tesla and Spacex CEO Elon Musk has emphasized the need for “comprehensive deregulation.” This followed his prediction that the U.S. Securities and Exchange Commission (SEC) will undergo a “comprehensive overhaul” with 100% probability. In a recent post on his social media platform, X, the billionaire stated: “There needs comprehensive deregulation. Period.”
Musk’s statement came as the SEC is overreaching in several areas, including crypto. Numerous U.S. lawmakers, regulators, businesses, and individuals have voiced concerns regarding the SEC’s actions. There is even a bill introduced in Congress to remove SEC Chairman Gary Gensler.
A recent rule proposal by the SEC, aimed at regulating predictive data analytics (PDA) and artificial intelligence (AI), has caught Musk’s attention. Gensler has warned about the potential for AI to trigger a financial crisis in the coming decade.
On Saturday, Vladimir Tenev, the CEO of financial services company Robinhood Markets, cautioned on X that this new rule “would severely curb financial services firms from using technology to serve customers,” which in turn “would have a major impact on investors.” He explained: “The rule is so broad, it would demand costly manual reviews on almost all tech applications, even basic things like color choices in app design and simple A/B testing.”
The Robinhood executive further warned: “The SEC admitted that the rule would be so difficult and costly to comply with, maybe even impossible, that firms might be forced to stop using technology to serve customers altogether. And, they have yet to identify any specific actual investor harm caused by technology. The real harm is that it will become more difficult and expensive for customers to invest and trade.”
Commenting on Tenev’s concern regarding the SEC’s predictive data analytics rule proposal, Musk wrote on X:
Our civilization is being slowly strangled to death one regulation at a time.
The Tesla boss is presently facing a lawsuit from the SEC. The securities regulator is taking legal action to compel him to testify regarding his acquisition of the social media platform Twitter, now rebranded as X. Musk had previously expressed his lack of respect for the SEC, stating, “I do not respect the SEC.” In a recent development, Musk, along with Dallas Mavericks owner Mark Cuban and several others, jointly submitted an amicus brief in support of the defendants in a Supreme Court case against the SEC.
Do you think there is a need for comprehensive deregulation as Elon Musk suggested? Let us know in the comments section below.
