The leading Democrat on the US House Financial Services Committee has raised alarms following reports that Elon Musk’s “government efficiency” team may gain access to data and systems at the Securities and Exchange Commission (SEC).
In a notice on March 31, Representative Maxine Waters reiterated her concerns from a letter sent earlier in February to acting SEC Chair Mark Uyeda, which addressed the reported access to sensitive information by Musk’s Department of Government Efficiency. This group, associated with former President Donald Trump, does not have formal status as a federally established department. Waters cautioned that granting Musk such access could lead to “serious repercussions” for US investors and create conflicts of interest.
“As a result of this takeover, the agency faces a heightened risk of data breaches and market disruptions, both of which could lead to investors, including retirees, losing their hard-earned savings,” Waters stated, adding:
“Moreover, Musk, who has faced numerous SEC enforcement actions for violations of securities laws, could leverage this access to benefit his own businesses while undermining his competitors through confidential information and his influence on the agency’s operations.”
Her warning came in the wake of multiple reports indicating that Musk’s DOGE team reached out to the SEC and would be granted access to the commission’s systems and data. Since joining the Trump administration as a “special government employee,” Musk has led efforts to dismiss personnel from various government agencies, including the US Agency for International Development (USAID) and the Consumer Financial Protection Bureau (CFPB). Many initiatives of DOGE are currently facing lawsuits in federal court from groups arguing that their actions were illegal or unconstitutional.
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As a key regulatory body in the US, the SEC oversees and regulates many facets of the cryptocurrency industry, including determining whether certain tokens are classified as securities. Under Uyeda and former President Trump, the commission has withdrawn several lawsuits alleging securities law violations against cryptocurrency firms since January.
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It remains uncertain whether the DOGE team aims to “purge” the SEC of employees deemed insufficiently loyal to the Trump administration, as suggested by some lawsuits concerning firings at other federal agencies. Inquiries were made to acting Chair Uyeda and SEC Commissioner Caroline Crenshaw for comment, but no responses had been received by the time of publication.
Reports of DOGE’s potential role within the SEC coincide with the US Senate Banking Committee’s impending vote on advancing the nomination of Paul Atkins, Trump’s nominee to lead the agency. During his confirmation hearing on March 27, Atkins expressed his willingness to work with DOGE if confirmed. Democratic lawmakers at the hearing raised concerns about Atkins’ potential conflicts of interest related to the cryptocurrency sector.
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