Congress
‘Weaponized’ agency: Ramaswamy, Musk attack SEC after diversity ruling setback
Vivek Ramaswamy and Elon Musk are joining other Trump allies in slamming the Securities and Exchange Commission after a federal appeals court threw out the regulator’s approval of board diversity rules from the Nasdaq exchange.
Less than 24 hours after the New Orleans-based Fifth Circuit Court of Appeals decided in favor of conservative groups that had challenged the rules, Ramaswamy, Musk and Sen. Mike Lee of Utah said the decision underscored what they see as underlying issues with Wall Street’s top regulator.
“When an agency like the SEC is so repeatedly & thoroughly embarrassed in federal court for flouting the law, it loses its legitimacy as a law enforcement body,” said Ramaswamy, who is heading up the so-called Department of Government Efficiency alongside Musk, in a post on X.
Musk called the SEC “just another weaponized institution doing political dirty work” in a post of his own, while Lee said the SEC “cannot be trusted.”
The attacks could offer a preview of the potential scrutiny that awaits the SEC in the incoming administration, as President-elect Donald Trump and his team look to overhaul the federal government and slash spending. Leading that charge from the outside will be Ramaswamy and Musk’s DOGE, an advisory panel that is expected to look at everything from cutting regulations to forcing the federal workforce back to the office.
The SEC has long been a popular target for conservative groups, lawmakers and business titans, including Musk. The billionaire owner of X, Tesla chief executive and Trump’s highest-profile backer has repeatedly clashed with the agency in recent years, including during the first Trump administration. Most recently, the SEC has been investigating Musk’s $44 billion purchase of X, which was then called Twitter.
An SEC spokesperson did not immediately respond to a request for comment about the posts by Ramaswamy, Musk or Lee.
The Nasdaq rules were designed to require companies listed on the exchange to publicly disclose data about their board members and to have at least two members who identify as having diverse backgrounds — or for the company to explain why they don’t have those individuals in place.
But the Fifth Circuit found that the proposals “cannot be squared” with federal securities laws and that the SEC had “intruded into territory outside its ordinary domain” by approving them.
The decision, handed down more than three years after the SEC’s approval order, was the latest in a string of legal defeats for the Gary Gensler-led SEC.
Financial industry and conservative groups have launched a wide-ranging effort in recent years to knock down critical SEC rules in the courts — and particularly in the conservative-majority Fifth Circuit. An SEC spokesperson said late Wednesday that the agency is reviewing the Nasdaq ruling.
How the SEC handles the legal challenges going forward could fall on the shoulders of Trump’s pick to lead the agency, Paul Atkins. Earlier this month, the president-elect tapped the former SEC commissioner and Wall Street adviser to replace Gensler next year. If confirmed, Atkins is widely expected to pursue a business-friendly agenda that could entail walking back certain rules and lawsuits pursued by Gensler’s SEC.
Dennis Kelleher, who leads the financial reform advocacy group Better Markets, told Blue Light News that the federal court ruling had little to do with the SEC or the merits of Nasdaq’s rules. Instead, he said, “it is about a biased kangaroo court weaponized with Trump-appointed judges who reflexively side with the industry against government rules regardless of facts, law or policy.”
“The goal of the industry is to turn the SEC from an effective cop on the Wall Street beat to a toothless tiger that does not do its job and cannot do its job,” Kelleher said. But, he warned, “undermining and crippling the SEC is undermining the United States capital markets, which is the jet fuel for our economy.”
Congress
Senate GOP ready to move on elections bill
Senate Majority Whip John Barrasso told reporters Monday the chamber will vote Tuesday to take up a House-passed elections bill known as the SAVE America Act.
The Wyoming Republican, whose job it is to help round up support, said he is “doing everything I can to make sure we get on this bill tomorrow.”
Republicans will need a simple majority to begin debate on the partisan legislation; they can lose three members and still let Vice President JD Vance break a tie.
So far, Sen. Thom Tillis (R-N.C.) has said he’s a “no,” while Republicans are also watching GOP Sens. Lisa Murkowski of Alaska and Mitch McConnell of Kentucky.
Congress
Jesse Jackson’s family withdraws posthumous endorsement in Illinois Senate primary
The family of the late Rev. Jesse Jackson walked back a posthumous endorsement of Illinois Lt. Gov. Juliana Stratton’s Senate campaign on Monday, after the family said Jackson’s endorsements for Tuesday’s primaries were not completed before his death.
On Saturday, Stratton’s campaign touted an endorsement from Jackson, who died last month, and his son Yusef. The announcement came after Stratton saw Rainbow PUSH Coalition, the Jackson family’s organziation, passing out sample ballots — which were also obtained by Blue Light News — that recommended Stratton.
“[Jackson’s] example has been a north star for me, and I’m deeply honored to have received his trust, support, and endorsement before his passing,” Stratton said in a statement on Saturday.
But on Monday, Yusef Jackson, who is the organization’s COO, said the draft sample ballot was “released without authorization” and that the Jackson family and Rainbow PUSH Coalition are not making political endorsements this cycle.
His father “began the process of reviewing candidates and identifying those he intended to support in the upcoming primary election,” Yusef Jackson said in the statement. “However, given his passing just over a month ago, the process was never fully completed. Out of respect for my father, we decided not to publicly release his intended selections given the process had not been finalized.”
The Stratton campaign said on Monday that officials with Rainbow PUSH Coalition said she had been endorsed by Jackson.
“Juliana spoke on Saturday at Rainbow PUSH for a Women’s History Month event and officials told her she received the endorsements. Organizers shared the sample election ballot that was already being distributed and encouraged her to share the news,” the Stratton campaign said in a statement.
The endorsement mix-up draws further scrutiny on the split among Black Democrats in Illinois between Stratton and Rep. Robin Kelly (D-Ill.), who are both seeking to succeed retiring Sen. Dick Durbin. Some Democrats in the state have expressed concern that Stratton and Kelly could split the vote in Tuesday’s primary, creating a path for Rep. Raja Krishnamoorthi (D-Ill.) to win the nomination.
Rep. Jonathan Jackson (D-Ill.) told Blue Light News prior to the family’s statement that his father “never got in on Black-on-Black fights.”
Jonathan Jackson added that the races the late Jesse Jackson “was excited about” were himself and former Rep. Jesse Jackson Jr.’s comeback bid.
“He wouldn’t do that. He was always pushing the community forward,” Jackson said. “This smells of desperation.”
Congress
Johnson on Trump’s Hormuz plan
Speaker Mike Johnson said he supports President Donald Trump’s effort to build a global coalition ensure safe passage of commerce through the Strait of Hormuz — even if Trump “didn’t anticipate it” being necessary before launching airstrikes against Iran.
Speaking to reporters after attending a Washington event with Trump, Johnson said the president told him that “he anticipated the strait of Hormuz would be closed.”
“I don’t know that he didn’t anticipate it in the front end, but now it’s necessitated,” Johnson said. He added that the coalition is “a reasonable thing” for other countries to assist with and “it would be helpful.”
Asked about how much a potential supplemental package to fund the military action would cost, Johnson said, “We don’t know yet.” Estimates for the cost of the war have exceeding $1 billion per day.
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