Margaret Ryan, the former director of the SEC’s Division of Enforcement, reportedly came into conflict with the agency’s top leadership before abruptly stepping down on March 16 after only six months in the role. According to Reuters, Ryan sought to pursue fraud and other charges in cases involving individuals connected to President Donald Trump, but faced resistance from SEC Chair Paul Atkins and other Republican political appointees. The SEC did not provide a reason for her departure in its announcement that day, and Ryan could not be reached for comment.
Two cases at the center of the dispute involved crypto entrepreneur Justin Sun and Tesla CEO Elon Musk, both of whom have ties to Trump. Musk currently serves as a special White House adviser, adding a political dimension to the enforcement decisions. Lawyers closely following both lawsuits reportedly considered the cases strong, with a good chance of the SEC prevailing in court.
The SEC’s case against Sun was originally filed in March 2023, alleging that he and three of his companies sold unregistered securities and engaged in manipulative wash trading. The agency settled the lawsuit earlier this month for $10 million, with Sun and his companies neither admitting nor denying the allegations. An SEC enforcement official told Reuters that the case was complicated by shifting crypto guidance and pending legislation, and that Ryan was understood to have supported the settlement, though her signature did not appear on court documents.
Sun’s connection to Trump deepened in November 2024, when he became the largest investor in the Trump family’s crypto project, World Liberty Financial, purchasing $30 million worth of its tokens. He subsequently increased his total stake to $75 million in January 2025. Tron, one of the companies named in the SEC’s original lawsuit, did not respond to a request for comment and has previously declined to comment on pending legal matters.
The SEC’s case against Musk, filed during the final week of former chair Gary Gensler‘s tenure, centered on claims that Musk failed to properly disclose acquiring beneficial ownership of Twitter, now known as X, in early 2022. The SEC alleged this allowed him to purchase shares at artificially lower prices. In a joint court filing on March 17, both parties indicated they were in discussions to reach a settlement.
Ryan’s resignation comes as the SEC faces growing scrutiny from Democratic lawmakers over its reversal on crypto-related enforcement. Under Trump, the agency has dropped or settled multiple cases that were initiated during Gensler’s leadership. The broader pattern of decisions has raised questions about the independence of the agency’s enforcement priorities in relation to individuals with political ties to the current administration.
Originally reported by CoinTelegraph.
