The Securities and Exchange Commission defended the settlement agreement reached with Musk on the Twitter issue, stating that the agreement reflects "both sides' compromises."

The Securities and Exchange Commission defended its settlement agreement with Elon Musk regarding his purchase of Twitter shares, stating that the agreement reflects a "compromise" between the two parties and there is no suspicion of collusion. Previously, the judge responsible for overseeing the case had raised "alarms" about the agreement. In a filing submitted to the District Court for the District of Columbia, the SEC also noted in a footnote that if the settlement agreement is approved, it will allow Musk to publicly deny the allegations, reflecting a recent policy change towards defendants reaching enforcement settlements. The settlement agreement requires the establishment of a trust fund in Musk's name, paying $1.5 million to resolve the SEC's allegations that the world's richest man delayed disclosing his purchase of Twitter shares in March and April 2022 for 11 days, allowing him to buy at a lower price before investors noticed. Musk stated that the delay was unintentional. He ultimately acquired Twitter for $44 billion in October 2022 and renamed it X. In Monday's filing, the SEC stated that the "fair, reasonable, and appropriate" settlement agreement is not the result of any improper collusion between the parties, but rather "stemmed from fair negotiations between attorneys on the record and reflects a compromise between the parties." The agency also emphasized that the $1.5 million fine is the largest in similar cases and reaching a settlement with a trust fund aligns with SEC practices in recent cases.