The former head of enforcement at the US Securities and Exchange Commission reportedly clashed with senior leadership before stepping down last week, partly over disagreements on how the agency handled cases involving figures linked to Donald Trump.
According to reports, Margaret Ryan, who led the SEC’s Division of Enforcement, pushed to pursue fraud and related charges in matters involving individuals within Trump’s circle. However, she faced resistance from SEC Chair Paul Atkins and other Republican-appointed officials, Reuters reported, citing sources familiar with the situation.
Two high-profile cases that reportedly fueled tensions involved crypto entrepreneur Justin Sun and Elon Musk, CEO of Tesla and a special adviser at the White House.
Ryan resigned from the SEC on March 16 after just over six months in the role. The agency’s official announcement did not specify the reason for her departure.
The development comes amid growing scrutiny from Democratic lawmakers over the SEC’s shift in handling crypto-related cases, with several actions initiated under former Chair Gary Gensler reportedly being dropped or settled under the current administration.
The US Securities and Exchange Commission did not immediately respond to requests for comment, and Margaret Ryan was also unavailable.
Sun and Musk cases drove internal tensions
The SEC’s case involving Justin Sun was reportedly a major point of frustration for Ryan. Earlier this month, the agency settled its lawsuit against Sun and three of his companies for $10 million, with no admission or denial of wrongdoing.
The SEC originally filed the case in March 2023, alleging that Sun and his firms sold unregistered securities and engaged in manipulative wash trading. Sun later became a major backer of World Liberty Financial, a Trump-linked venture, investing $30 million in November 2024 and increasing his total stake to $75 million by January 2025.
Sources indicated the case was complicated by evolving crypto regulations and pending legislation. While Ryan reportedly supported the eventual settlement, her signature was absent from the final court documents.
TRON, which was also named in the lawsuit, declined to comment.
Another source of contention was the SEC’s case against Elon Musk. Filed in January 2025 during the final days of Gary Gensler’s tenure, the lawsuit alleged Musk failed to properly disclose his acquisition of a significant stake in Twitter (now X) in early 2022, enabling him to purchase shares at lower prices.
On March 17, the SEC and Musk said in a joint filing that they are in discussions to settle the case.
Legal experts following both matters noted that the cases against Sun and Musk were considered strong and had a high likelihood of success in court, adding to the significance of the internal disagreements within the agency.
