TLDR
- Elon Musk’s Department of Government Efficiency (DOGE) is set to investigate the SEC in the coming days, amid an ongoing push to reduce federal spending and regulations
- Musk has a contentious history with the SEC, including a recent lawsuit alleging he underpaid Twitter stock investors by $150 million in 2022
- DOGE has created over 30 affiliate pages on X (formerly Twitter) and is seeking public input on “waste, fraud and abuse” at the SEC
- Democrats have expressed concerns about Musk potentially accessing sensitive SEC data, particularly the Consolidated Audit Trail trading system
- The Trump administration maintains Musk will recuse himself from potential conflicts of interest, though he serves as a special government employee
The Department of Government Efficiency (DOGE), led by Elon Musk, is preparing to begin its review of the Securities and Exchange Commission (SEC) in the coming days, according to sources familiar with the matter. This move marks the latest step in President Donald Trump’s initiative to reduce federal spending and regulatory oversight.
DOGE’s arrival at the SEC follows its expansion across multiple federal agencies. The department has already established more than 30 affiliate pages on X (formerly Twitter) to broaden its cost-cutting efforts. One such affiliate, DOGE SEC, recently posted a public call for information about “waste, fraud and abuse” within the securities regulator.
The timing of this review comes shortly after Musk’s latest clash with the SEC. In January 2025, under then-Chair Gary Gensler, the agency filed a lawsuit against Musk alleging he failed to properly disclose his Twitter stock purchases in 2022. The SEC claims these actions resulted in investors being underpaid by more than $150 million.
Following the lawsuit’s announcement, Musk took to X to criticize the SEC, calling it a “Totally broken organization” and questioning its priorities in law enforcement. This statement adds to a decade-long history of disputes between Musk and the regulatory body.
Data Access Debate
The SEC currently operates under acting Chair Mark Uyeda, who will lead the agency until Trump’s nominee, Paul Atkins, receives confirmation. The specific focus of DOGE’s investigation remains unclear, but the team’s presence has already sparked concern among some lawmakers.
House Financial Services Committee’s leading Democrat, Rep. Maxine Waters, along with Rep. Brad Sherman, have raised alarms about potential access to sensitive information. In a letter to Acting Chair Uyeda, they specifically mentioned the Consolidated Audit Trail, a comprehensive system that monitors trading across U.S. markets.
The lawmakers expressed particular concern about granting access to these systems to Musk, writing that it would “jeopardize the important role the SEC plays in maintaining and overseeing critical financial data.”
DOGE’s review of the SEC follows its recent activities at other federal agencies. On February 17, 2025, a federal judge granted the department access to sensitive student loan records at the Department of Education. The team is also seeking to review taxpayer data at the Internal Revenue Service.
The White House has addressed concerns about potential conflicts of interest. Press Secretary Karoline Leavitt stated that President Trump would not allow conflicts to arise, and Musk has agreed to recuse himself from situations where conflicts might exist.
A Trump administration official clarified Musk’s role, stating that as a special government employee, he “plays no direct role in the work of those working across the administration to identify, expose, and uproot waste, fraud, and abuse.”
The SEC has declined to comment on DOGE’s upcoming review. However, the agency maintains vast amounts of confidential information about U.S. financial markets and their participants, making the scope and extent of DOGE’s access a matter of ongoing discussion.
DOGE has expanded its presence on social media, using X as a platform to gather public input about various federal agencies. The DOGE SEC account has joined this effort, actively seeking information from individuals with knowledge of SEC operations.
This review represents the latest development in the relationship between Musk and the SEC, which has been marked by legal disputes and public criticism. The outcome of both the recent lawsuit and DOGE’s investigation remain pending.
Waters and Sherman warned in their letter that the SEC’s information systems could become “the single largest treasure trove that he can pillage for his personal gain or vendetta,” highlighting the stakes involved in this review.
President Trump maintains authority over the executive branch, with Leavitt noting that the president “reserves the right to fire anyone he wants.” This statement underscores the broad scope of the administration’s oversight of federal agencies.
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