Musk’s DOGE Sets Sights on SEC in Efficiency Drive

Elon Musk‘s Department of Government Efficiency (DOGE) is reportedly preparing to scrutinize the U.S. Securities and Exchange Commission (SEC) as part of its ongoing effort to reduce government spending and improve operational efficiency.

According to sources familiar with the matter, DOGE is expected to arrive at the SEC in the coming days, with one anonymous insider stating, “They are at the gates”. This move is part of a broader initiative by DOGE, which has already expanded its reach to over 30 federal agencies through affiliate pages on the social media platform X.

Public Involvement and Transparency

DOGE SEC, one of the department’s affiliates, has issued a public call for assistance, encouraging citizens to share insights on identifying and addressing waste, fraud, and abuse within the SEC. This approach aligns with DOGE’s mission to involve the public in government oversight and efficiency improvements.

Musk’s History with the SEC

The targeting of the SEC by DOGE is particularly noteworthy given Musk’s past conflicts with the regulatory body. Recently, the SEC alleged that Musk underpaid Twitter stock investors by over $150 million, prompting Musk to criticize the agency as a “totally broken organization”.

Concerns and Safeguards

Democratic lawmakers, including Maxine Waters, have expressed concerns about potential conflicts of interest and Musk’s access to sensitive SEC information, particularly the Consolidated Audit Trail. In response, White House Press Secretary Karoline Leavitt stated that President Trump has committed to preventing conflicts of interest, and Musk himself has agreed to recuse himself from situations where conflicts may arise.

SEC Chair’s Cautionary Statement

Acting SEC Chair Mark Uyeda has expressed concern about the potential consequences of DOGE’s investigation. He cautioned about the “dangerous consequences” that could arise if unauthorized groups gain access to confidential SEC systems and data.

Legal Challenges

While not a direct response from the SEC itself, it’s worth noting that there are ongoing legal challenges related to DOGE’s activities:

Nineteen state attorneys general have filed a lawsuit against the Trump administration, alleging violations of privacy laws and raising cybersecurity concerns about access to sensitive financial data.

A federal judge in New York has temporarily blocked DOGE from accessing Treasury Department records containing sensitive personal data.

These legal actions, while not specifically from the SEC, indicate broader concerns about DOGE’s investigative methods and data access across various government agencies.

Expanding Scope

DOGE’s activities are not limited to the SEC. The department has recently gained access to sensitive student loan records from the Department of Education and is seeking similar access to taxpayer data at the Internal Revenue Service.

As DOGE continues its mission to streamline government operations, its approach to the SEC will likely be closely watched by both supporters and critics of the initiative.

Angel Marinov is the Managing Editor at Coinlabz. With extensive knowledge of crypto payments and blockchain use cases, Angel is a trusted source of accurate and timely information