Concerns Raised Over Elon Musk's Access to SEC Data

According to Cointelegraph, concerns have been raised following reports that Tesla CEO Elon Musk's 'government efficiency' team might gain access to data and systems at the Securities and Exchange Commission (SEC). Representative Maxine Waters, the top Democrat on the US House Financial Services Committee, issued a warning on March 31, reiterating her previous concerns expressed in a February letter to acting SEC Chair Mark Uyeda. Waters highlighted the potential risks associated with the Musk-led Department of Government Efficiency (DOGE) accessing sensitive SEC information. DOGE, an advisory body to U.S. President Donald Trump, is not an official department established by Congress. Waters warned that granting Musk such access could have severe consequences for U.S. investors and create conflicts of interest. Waters expressed concerns that the SEC could face increased risks of data breaches and market disruptions, potentially leading to significant financial losses for investors, including retirees. She also pointed out that Musk, who has faced multiple SEC enforcement actions for violating securities laws, might exploit his access to confidential business information to benefit his own enterprises and disadvantage competitors. Reports suggest that Musk's DOGE team has contacted the SEC and may soon have access to the commission's systems and data. Since joining the Trump administration as a 'special government employee,' Musk has led efforts to reduce staff at various government agencies, including the US Agency for International Development (USAID) and the Consumer Financial Protection Bureau (CFPB). Many of DOGE's actions have been challenged in federal court, with lawsuits alleging illegal or unconstitutional conduct. The SEC, a major U.S. financial regulator, oversees and regulates many aspects of the cryptocurrency industry, including determining whether certain tokens qualify as securities. Under the leadership of Uyeda and U.S. President Donald Trump, the commission has dropped several lawsuits against crypto firms for alleged securities law violations since January. There is speculation about whether the DOGE team plans to 'purge' the SEC of employees deemed disloyal to the Trump administration, as suggested in some lawsuits related to firings at other government agencies. Cointelegraph reached out to acting chair Uyeda and SEC Commissioner Caroline Crenshaw for comments but did not receive a response before publication. The reported infiltration of the SEC by DOGE coincides with the US Senate Banking Committee's upcoming vote on advancing the nomination of Paul Atkins, President Trump's choice to chair the agency. During his March 27 confirmation hearing, Atkins expressed willingness to collaborate with DOGE if confirmed. Democratic lawmakers at the hearing raised concerns about Atkins' potential conflicts of interest with the cryptocurrency industry.