Elon Musk has until Monday to respond to a settlement proposal from the US Securities and Exchange Commission (SEC), which is investigating potential securities law violations tied to his $44 billion acquisition of Twitter in 2022, according to a recent Reuters report.

This signals that the year-long probe may be nearing a conclusion in what has been a public and contentious battle between Musk and the US markets regulator.

The SEC's investigation focuses on whether Musk violated securities laws by delaying a mandatory filing about his Twitter stock purchases, which some estimates suggest saved him over $140 million. The agency is also scrutinising statements Musk made during the takeover process. Failure to meet the disclosure deadline prompted accusations that Musk may have benefited from the delay, says the Reuters report.

Last Tuesday, the SEC sent Musk a settlement offer, originally giving him 48 hours to respond. After a request for an extension, the deadline was pushed to Monday. If Musk declines to settle, the SEC is expected to move forward with a formal 'Wells' notification, which outlines potential charges and provides Musk an opportunity to respond, explains the report.

Musk publicly shared a letter from his lawyer, Alex Spiro, addressed to SEC Chair Gary Gensler, criticising the short deadline and questioning whether political motives influenced the SEC's actions. The letter also revealed that the SEC had reopened a separate investigation into Musk's brain implant startup Neuralink, though details of that probe remain unclear. Neuralink has faced scrutiny from lawmakers and animal rights groups over its safety practices.

The SEC's history with Musk dates back to 2018 when it accused him of securities fraud over his claim to have "funding secured" to take Tesla private. That case resulted in a settlement requiring Musk to have some of his social media posts vetted, though he has since accused the SEC of harassment.

Musk's attorney has implied political motivations behind the current investigation, particularly in light of Musk's new federal government role as co-leader of the Department of Government Efficiency under the Trump administration. However, the source close to the SEC refuted such claims, suggesting that failing to pursue violations would constitute a political decision instead, further adds the report.