According to unnamed Reuters sources, SEC Enforcement Director Margaret Ryan stepped down just months after her appointment, following a series of disagreements with the commission’s leadership. The dispute centered on how investigations should be handled, including those in the crypto sector. Ryan did not publicly comment on her departure.
Disagreements Over Key Cases
Ryan pushed for a tougher approach in cases involving manipulation and fraud, particularly in the crypto market. According to sources, this is where repeated clashes with leadership began.
A key flashpoint was the case involving Justin Sun. The case focused on allegations of wash trading and market manipulation totaling over $31.0 M. Ryan opposed a softer settlement and pushed for stricter terms, but her position was not supported within the commission.
At the same time, disagreements emerged over the case involving Elon Musk, related to the disclosure of his Twitter share purchases. Discussions dragged on, and tensions moved beyond routine internal debate.
Tighter Internal Control Within the SEC
The conflict unfolded as the SEC was revising its internal operating model. Under Paul Atkins, the commission shifted priorities and tightened control over the Enforcement Division: staff could no longer independently initiate investigations, and every case required approval from commissioners. This restriction became a постоянная точка напряжения.
Ryan joined the SEC from military justice and had no prior experience with securities markets. According to sources, she took a direct, uncompromising approach and rejected the more flexible stance promoted by leadership.
By the time of her departure, the conflict was no longer situational. Disagreements had spread across key investigations, including those in the crypto sector, effectively blocking her ability to operate within the commission.