The United States Securities and Exchange Commission’s former top enforcement official clashed with agency leadership over handling cases involving individuals close to President Donald Trump before resigning last week, according to sources familiar with the matter.
Margaret Ryan, the ex-director of the SEC’s Division of Enforcement, wanted to pursue fraud and other charges in cases involving those in Trump’s orbit but faced resistance from SEC Chair Paul Atkins and other Republican political appointees, Reuters reported on Monday. Ryan resigned on March 16 after just over six months in her role.
Two cases that reportedly created significant tension between Ryan and the SEC’s leadership 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.
The SEC’s March 16 announcement of Ryan’s resignation did not detail the reasons behind her departure. The agency did not immediately respond to a request for comment, and Ryan could not be reached for comment.
The resignation comes amid increased scrutiny from Democratic lawmakers over the SEC’s policy shifts on crypto-related cases. Under Trump’s administration, the agency has dropped or settled multiple cases that were launched under former SEC Chair Gary Gensler.
The SEC’s lawsuit against Sun was among the cases that reportedly frustrated Ryan. The agency ended its case against Sun and three of his companies earlier this month with a $10 million settlement, despite what lawyers following the case described as strong evidence favoring the SEC.
The SEC first sued Sun in March 2023, alleging that he and three of his companies sold unregistered securities and engaged in manipulative wash trading. The settlement saw Sun and his companies neither admit nor deny the SEC’s allegations.
Sun became the largest investor in the Trump family’s crypto project, World Liberty Financial, in November 2024 after buying $30 million worth of its tokens. He subsequently increased his stake to a total of $75 million in January 2025.
An SEC enforcement official told Reuters that the case against Sun was complicated by shifting crypto guidance and pending crypto laws. The official said it was their understanding that Ryan supported the settlement, but her signature did not appear on court documents.
Tron, a company named in the SEC’s lawsuit, did not immediately respond to a request for comment. The company has previously declined to comment on pending legal matters.
The SEC’s case against Musk, filed in the final week of Gensler’s tenure, was also reportedly a sticking point for Ryan. The agency sued Musk in January 2025, claiming he failed to disclose that he “acquired beneficial ownership” of Twitter, now known as X, in early 2022.
According to the SEC’s complaint, this failure allowed Musk to purchase shares at lower prices. The SEC and Musk said in a joint court filing on March 17 that they were in talks to settle the lawsuit.
Lawyers closely following both the Sun and Musk cases told Reuters that both lawsuits were reportedly strong and had a good chance of the SEC winning in court. The settlements and negotiations have raised questions about the agency’s enforcement priorities under its current leadership.
The tension between Ryan and SEC leadership highlights the broader debate over how the agency approaches crypto enforcement and cases involving politically connected individuals. Under Atkins’ leadership, the SEC has taken a markedly different approach to crypto regulation compared to the Gensler era.
Ryan’s departure removes a key enforcement figure who had overseen major crypto-related cases during her tenure. Her exit adds to the leadership changes at the SEC as the agency continues to reshape its regulatory approach under the Trump administration.
The cases involving Sun and Musk represent high-profile examples of how the SEC’s enforcement strategy has shifted. Both settlements occurred despite what legal experts described as solid cases that could have resulted in court victories for the agency.
Democratic lawmakers have increasingly criticized the SEC’s handling of crypto cases and its approach to enforcement actions involving Trump associates. The agency’s policy reversals have sparked debate about political influence on regulatory decisions.
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