CZ, the CEO of Tesla, is leading the Government Efficiency Department (DOGE) to audit and conduct large-scale layoffs at various federal government agencies to reduce unnecessary government spending and improve efficiency. He has now turned his attention to a new target, the U.S. Securities and Exchange Commission (SEC).
DOGE to Audit the SEC
On Monday, DOGE opened a new subsidiary account "DOGE SEC" on the X platform, planning to conduct an audit of the SEC and is seeking external assistance through a tweet:
DOGE is seeking public help! Please DM this account with information on identifying and addressing waste, fraud, and abuse within the SEC.
The crypto industry, which has previously been heavily targeted by the SEC, has responded enthusiastically. Coinbase's general counsel, Paul Grewal, has suggested that a rule should be established to allow defendants who successfully win lawsuits against the SEC to be compensated for their legal fees.
Some members of the crypto community have also raised specific issues, such as allegations of favoritism in personnel decisions by former SEC Chairman Gary Gensler, and allegations that the SEC concealed 201 communications between Morgan Stanley and Ripple (XRP). Ripple's general counsel, Stuart Alderoty, stated that he has evidence of these documents.
The SEC's lawsuit against Ripple has reached a critical stage, and the market is increasingly speculating that the SEC may withdraw its appeal. Currently, Mark Uyeda is serving as the acting SEC Chairman, and SEC Commissioner Hester Peirce has been appointed to lead the crypto project team, which is expected to play a role in resolving non-fraudulent crypto cases.
Legal experts believe that if former SEC Commissioner Paul Atkins, who is known for his friendly stance towards crypto, is confirmed as the new SEC Chairman, the SEC may abandon its aggressive enforcement stance towards crypto. Former SEC Cyber Enforcement Division Chief John Reed Stark previously analyzed that Paul Atkins could potentially reverse the SEC's current enforcement direction on crypto.
CZ Suggests Musk Use Blockchain to Replace Paper Checks
Additionally, Musk is also investigating the inefficiency of the U.S. Treasury Department. Musk retweeted a DOGE post today, pointing out that the U.S. Treasury processed 116 million paper checks in fiscal year 2024, and due to check returns or expiration, approximately $25 billion in tax refunds were delayed or lost in fiscal year 2023.
According to DOGE, the U.S. Treasury currently maintains a physical lockbox network to collect paper checks (IRS) and passports (State Department), with a maintenance cost of approximately $2.4 per check. If paper checks were eliminated, it could save at least $750 million per year.
In response, Binance founder CZ briefly replied to Musk with "Block", hinting that blockchain technology could potentially solve such problems.
Musk may not be averse to CZ's suggestion, as Bloomberg previously reported that DOGE has already begun discussing the feasibility of introducing blockchain in government operations, and there are reports that DOGE personnel have met with representatives of multiple public chain projects to evaluate the technical applicability.
