Margaret Ryan, who led the U.S. Securities and Exchange Commission’s Division of Enforcement for just over six months, resigned on March 16 after reported clashes with SEC leadership over how the agency handled cases involving allies of former President Donald Trump.
According to Reuters, citing people familiar with the matter, Ryan pushed to pursue fraud and related charges in cases tied to Trump’s circle but encountered resistance from SEC Chair Paul Atkins and other Republican appointees. The SEC’s announcement of her departure did not specify a reason, and the agency did not immediately comment. Ryan also could not be reached for comment.
Two high-profile matters that reportedly prompted internal tension involved crypto entrepreneur Justin Sun and Tesla CEO Elon Musk — both of whom have links to Trump, with Musk serving as a special White House adviser.
The SEC reached a $10 million settlement with Sun and three of his companies earlier this month in a lawsuit originally filed in March 2023 that accused Sun of selling unregistered securities and engaging in manipulative wash trading. The settlement allowed Sun and his companies to neither admit nor deny the allegations. Sun became the largest investor in the Trump family’s World Liberty Financial crypto project after buying $30 million in tokens in November 2024 and raising his stake to about $75 million by January 2025.
An SEC enforcement official told Reuters the Sun matter was complicated by shifting regulatory guidance on crypto and pending legislation. That official said Ryan supported the settlement, but her signature did not appear on the court documents. A company named in the suit, Tron, did not immediately respond to requests for comment.
The Musk case, filed in the final week of former Chair Gary Gensler’s term, accused Musk of failing to disclose that he had “acquired beneficial ownership” of Twitter (now X) in early 2022, which the SEC said allowed purchases at lower prices. On March 17, the SEC and Musk said in a joint court filing they were negotiating a settlement. Lawyers following the matters told Reuters both the Sun and Musk cases were legally strong and had a good chance of prevailing in court.
Ryan’s resignation comes amid heightened Democratic scrutiny of the SEC over what critics describe as a retreat on crypto enforcement after the agency, under the Trump administration, dropped or settled several cases that were filed during Gensler’s tenure.
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