According to three informed sources, the top enforcement official at the U.S. Securities and Exchange Commission (SEC) departed abruptly last week following disagreements with the agency's leadership over the direction of its enforcement program. These disagreements reportedly included the handling of cases related to former President Donald Trump and his family.
It was first reported that Margaret Ryan, Director of the SEC's Division of Enforcement, resigned last Monday, just over six months into her tenure. A resignation letter seen by the news outlet did not state a reason for her departure. Contacted by phone and text message, Ryan declined to comment on the SEC.
Two of the sources indicated that Ryan advocated for a more aggressive approach to prosecuting fraud and other misconduct, including cases involving the former president's circle. However, she reportedly faced opposition from SEC Chairman Paul Atkins and other Republican political appointees.
An SEC spokesperson stated that under Chairman Atkins' leadership, the agency makes enforcement decisions based on facts, law, and policy, not political considerations. The spokesperson added, "In every case, the Commission has faithfully enforced the federal securities laws. Debate and discussion among our attorneys and other staff is common and encouraged."
A White House spokesperson did not immediately respond to a request for comment.
The sources revealed that cases which contributed to the tension included one involving cryptocurrency entrepreneur Justin Sun, a major supporter of a venture connected to the Trump family. Another case involved Tesla Motors CEO Elon Musk, a significant donor to Trump's campaign who also briefly served as a special advisor to the president.
The sources were granted anonymity to discuss confidential law enforcement matters.
A lawyer for Justin Sun and a spokesperson for Musk's law firm declined to comment.
The previously unreported conflict between Ryan and SEC leadership offers further insight into the regulatory approach toward American businesses under Chairman Atkins, who has previously criticized the agency for a lack of transparency and unpredictability in its enforcement work.
The SEC has also shifted its focus from the large corporate cases and cryptocurrency crackdowns emphasized under prior Democratic leadership toward more fundamental fraud and market manipulation cases, such as Ponzi schemes and insider trading.
While the SEC Chairman sets the overall enforcement agenda and, along with other politically appointed commissioners, votes on disciplinary actions and penalties recommended by staff, the current administration has sought greater control. Officials have revoked the authority of staff to initiate formal investigations without first obtaining approval from the commissioners.