TLDR:
- Elon Musk’s Department of Government Efficiency (DOGE) is preparing to investigate the SEC, with sources indicating their imminent arrival at the agency
- DOGE has expanded its operations by adding over 30 affiliate pages on X, including DOGE SEC, which is seeking public input on waste and abuse
- The move comes amid ongoing tensions between Musk and the SEC, including a recent lawsuit alleging Musk underpaid Twitter stock investors by $150 million
- Democrat lawmakers have expressed concerns about Musk potentially accessing sensitive SEC information, particularly the Consolidated Audit Trail
- The White House has stated that Trump will not allow conflicts of interest, and Musk has committed to recusing himself from potential conflicts
The Department of Government Efficiency (DOGE), led by Elon Musk, is preparing to launch an investigation into the Securities and Exchange Commission (SEC), according to sources familiar with the matter. The move represents the latest chapter in Musk’s complex relationship with the federal regulator.
“They are at the gates,” revealed one anonymous source briefed on the situation, indicating DOGE’s imminent arrival at the SEC. The investigation comes as part of President Trump’s broader initiative to reduce federal spending and regulations across government agencies.
DOGE has recently expanded its reach by creating more than 30 affiliate pages on X, formerly known as Twitter. Among these new additions is DOGE SEC, which has already begun soliciting public input regarding potential waste, fraud, and abuse within the securities regulator.
— Elon Musk (@elonmusk) February 17, 2025
The timing of this investigation follows a recent lawsuit filed by the SEC against Musk. The agency alleged that Musk’s acquisition of Twitter stock in 2022 involved improper disclosures, resulting in investors being underpaid by over $150 million. In response to the lawsuit, Musk described the SEC as a “totally broken organization” on his social media platform X.
The investigation has raised concerns among Democratic lawmakers, particularly regarding access to sensitive market data. Representatives Maxine Waters and Brad Sherman have expressed worry about the SEC’s Consolidated Audit Trail, a comprehensive trading tracking system that contains detailed market information.
In a letter to Acting SEC Chair Mark Uyeda, Waters warned that allowing Musk and DOGE access to SEC systems could “jeopardize the important role the SEC plays in maintaining and overseeing critical financial data.”
The White House has moved to address these concerns through Press Secretary Karoline Leavitt, who stated that President Trump will not permit conflicts of interest. Additionally, Musk has agreed to recuse himself from situations where potential conflicts might arise.
The SEC is currently operating under interim leadership, with Mark Uyeda serving as acting Chair while awaiting the confirmation of Trump’s nominee, Paul Atkins. The agency has declined to comment on the pending investigation.
Recent DOGE Activity
DOGE’s investigation of the SEC follows its recent activities at other federal agencies. On February 17, a federal judge granted DOGE access to sensitive student loan records at the Department of Education. The organization is also pursuing access to taxpayer data at the Internal Revenue Service.
The scope of DOGE’s investigation remains unclear, but its mandate focuses on identifying areas of potential waste and inefficiency within federal agencies. The organization has established a pattern of seeking public input through social media channels.
This investigation marks another development in the ongoing tension between Musk and the SEC, a relationship that has been marked by public disagreements and legal challenges over the past decade.
The SEC’s vast repository of market data and regulatory information has made it a key target for DOGE’s efficiency review. The agency oversees trillions of dollars in market activity and maintains extensive databases of financial information.
Democrats in Congress continue to monitor the situation closely, with particular attention to the protection of sensitive market data and the potential implications for market integrity.
DOGE’s expanding presence across federal agencies reflects the administration’s broader push to reshape government operations. The organization has added numerous affiliate pages on X to coordinate its various investigations.
According to the latest information, DOGE is expected to begin its work at the SEC in the coming days, while the agency continues its regular operations under Acting Chair Uyeda’s leadership.
