Why did Elon Musk respond in this way? Civilization was choked to death. Information about the new proposed SEC regulations

 Why did Elon Musk respond in this way? Civilization was choked to death. Information about the new proposed SEC regulations

Elon Musk, the CEO of Tesla, responded forcefully to the US Securities and Exchange Commission's (US SEC) new rules governing financial services companies, calling them a "slow strangulation of civilization."

Musk said on his social media platform X, previously known as Twitter, "Our culture is being slowly strangled to death with one law at a time." Vladimir Tenev, the CEO and co-founder of Robinhood App, described the effects of the US SEC's action on fintech firms and users in a post that he was referencing.

The suggested laws

"The SEC has proposed a new "predictive data analytics" (PDA) regulation that would severely restrict how financial services companies use technology to help clients. I wholeheartedly support RobinhoodApp's opposition, which has been made known. Investors would be significantly impacted by this, Tenev stated on X.

Tenev criticized the US SEC for focusing on PDA and artificial intelligence in a number of postings.

With this regulation, the SEC is aiming to safeguard investors by focusing on PDA and AI. The guideline is so wide, however, that it would require expensive manual assessments of practically all software applications, including the most basic things like color selections in app design and straightforward A/B testing," he said.

Tenev said, "The SEC recognized that the regulation would be so expensive and difficult to comply with that enterprises would be compelled to completely cease employing technology to service clients. Additionally, they have not yet identified any concrete instances of technology harming investors. The actual impact is that investing and trading will be more costly and complex for clients.

A barrier to innovation?

Additionally, he said that the goal of the Robinhood App is to "make markets accessible to everyone through innovation," and that advancements in the sector and in retail investing "shouldn't be reversed."

This regulation would take us back in time. SEC regulations should promote the advantages that investors get from responsible innovation and technology while also ensuring that consumers have safeguards when they invest. The PDA regulation is not among them, and the SEC ought to abandon it, he said.

Tenev also invited readers in the US to write to the SEC at rule-comments@sec.gov to voice their opposition to the plan.