The leading Democrat on the US House Financial Services Committee has issued a cautionary statement following reports indicating that Tesla CEO Elon Musk’s “government efficiency” team would gain access to data and systems at the Securities and Exchange Commission (SEC).
In a notice dated March 31, Representative Maxine Waters reaffirmed a caution expressed in a letter directed to acting SEC Chair Mark Uyeda in February, responding to the Musk-led Department of Government Efficiency’s claimed access to sensitive SEC data. DOGE operates as an advisory group to US President Donald Trump instead of a formal department created by Congress. The California representative stated that permitting Musk such access would lead to “serious repercussions” for US investors and create potential conflicts of interest.
“[…] as a consequence of this takeover, the agency faces an increased risk of data breaches and market disturbances, both of which could lead to investors, including retirees, forfeiting their hard-earned savings,” commented Waters, further adding:
“Moreover, Musk, who has been the target of multiple SEC enforcement actions for infringing securities laws and regulations, could leverage his access to confidential business data and his sway over the agency’s activities to benefit his own enterprises and harm his rivals.”
Waters’ caution arrived after various reports indicating that Musk’s DOGE team reached out to the SEC and would be granted access to the commission’s systems and information. Since he joined the Trump administration as a “special government employee,” Musk has led initiatives to dismiss personnel at several government agencies, including the US Agency for International Development (USAID) and the oversight body Consumer Financial Protection Bureau (CFPB). Numerous actions taken by DOGE are currently facing legal challenges in federal court from groups asserting that their activities were illegal or unconstitutional.
Related: Can the law keep pace with Musk and DOGE?
As one of the principal US financial regulators, the SEC is tasked with overseeing and regulating numerous facets of the cryptocurrency sector, including determining whether many tokens are classified as securities. Under Uyeda and US President Donald Trump, the commission has terminated various lawsuits alleging breaches of securities laws against crypto companies since January.
‘Cost-reduction’ approach at SEC?
It remains uncertain whether the DOGE team aims to “purge” the SEC of personnel Musk perceives as disloyal to the Trump administration, as has been suggested in certain lawsuits regarding firings at other government bodies. Cointelegraph reached out to acting chair Uyeda and SEC Commissioner Caroline Crenshaw for their comments but did not receive a reply by the time of publication.
DOGE’s alleged infiltration of the SEC occurs as the US Senate Banking Committee is anticipated to vote on advancing the nomination of Paul Atkins, Trump’s choice to lead the agency. During his confirmation hearing on March 27, Atkins expressed that he would “certainly” be open to collaborating with DOGE if confirmed. Democratic lawmakers at the hearing inquired about Atkins’ possible conflicts of interest with the cryptocurrency industry.
Magazine: SEC’s reversal on crypto leaves critical questions open
