According to a Politico report, the U.S. Department of Government Efficiency (DOGE), led by Tesla CEO Elon Musk, is set to investigate the Securities and Exchange Commission (SEC), which is seen as part of Musk's efforts to reduce federal government spending.
(From Tariffs to DOGE: How Enterprises View the Impact of MAGA Policies?)
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ToggleDOGE Investigates SEC, New Wave of Spending Cuts to Commence
The report indicates that DOGE is expected to enter the SEC in the coming days and has already expanded its scope of action. An X account named "DOGE SEC" tweeted early this morning, seeking public assistance:
DOGE is seeking help from the public! Please DM this account with insights on finding and fixing waste, fraud and abuse relating to the Securities and Exchange Commission.
— DOGE SEC (@DOGE_SEC) February 17, 2025
Please send this account direct messages with clues or documents about waste, fraud, and abuse of resources at the SEC.
Reportedly, this is just one of the over 30 government agencies that DOGE has listed on X to investigate.
(Musk's DOGE Has Saved the U.S. $36.7 Billion, Coinbase CEO: Government Finances Must Be Chained)
Musk's Long-Standing Conflict with the SEC
The conflict between Musk and the SEC has been ongoing for years. As early as October 2023, Musk had clashed with the SEC over frequent investigations into his companies.
(With His Companies Facing Probes by DOJ and SEC, Musk: Regulatory Agencies Need Comprehensive Reform)
Recently, Musk was accused by the SEC of underreporting the stock value of Twitter (now X), causing investors to lose over $150 million, leading to another confrontation between the two parties.
At the time, Musk even criticized the SEC as a "completely corrupt institution":
They waste their time on this meaningless stuff, while there are so many criminal cases that go unpunished.
Democratic Lawmakers Express Conflict of Interest Concerns
In this context, Democratic lawmakers have expressed concerns about DOGE potentially gaining access to sensitive SEC data, particularly the "Consolidated Audit Trail," which records U.S. stock market transactions and is considered the "largest financial database."
The lawmakers stated that handing over this data to the world's richest man, who has already shown disregard for the law, would have devastating consequences for the integrity and security of the American market:
Musk could use this information to pursue personal interests or take retaliatory actions.
White House Press Secretary Karoline Leavitt responded that "regarding the potential conflict of interest between Musk and DOGE, President Trump has stated that he will not allow such a situation to occur."
Musk himself has also promised to recuse himself if any potential conflicts arise.
DOGE Has Many More Institutions to Investigate
In addition to the SEC, DOGE has recently obtained sensitive student loan data from the U.S. Department of Education and plans to further investigate the Internal Revenue Service (IRS) in an attempt to access data related to taxpayers, in order to identify waste and misconduct in government spending.
Currently, the SEC is led by Acting Chair Mark Uyeda, awaiting the confirmation of Trump's nominee Paul Atkins. As DOGE takes further action, the confrontation between the regulatory agency and Musk continues to escalate.
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