A key House Democrat is raising concerns over Elon Musk’s Department of Government Efficiency’s involvement with the Securities and Exchange Commission.
“Giving Musk the keys to the agency’s private systems will have dire consequences for our nation’s investors, financial markets and the privacy of all companies subject to SEC regulation,” Rep. Maxine Waters, D-Calif., the top Democrat on the House Financial Services Committee, said in a statement March 31. “In fact, as a result of this takeover, the agency is at greater risk of data breaches and market disruptions, both of which could result in investors, including retirees, losing their hard-earning savings.”
A group of Musk advisers arrived March 28 at the SEC, according to communications from the agency sent to staff and reviewed by Bloomberg. The message didn’t identify the DOGE emissaries by name, and SEC staff were instructed to treat them as internal employees, according to the message.
“In compliance with the president’s Executive Order establishing DOGE, the SEC is beginning to onboard members of the team,” an agency spokesperson told Bloomberg.
At a March 27 confirmation hearing before the Senate Banking Committee, Paul Atkins, President Donald Trump’s nominee to lead the SEC, said he’d welcome working with DOGE.
“If there are people who can help with creating efficiencies in the agency or otherwise, I would definitely work with them.” Atkins said at the hearing. “And we’ll be looking at things going on at the commission right now to make sure that taxpayer funds are being used properly and that the work of the commission is being done effectively and efficiently.”
The SEC has already reduced its workforce during the first two months of the Trump administration. About 500 staffers representing about 10% of the SEC's roughly 5,000 employees accepted a $50,000 incentive to resign or retire by April 4, according to Bloomberg.
In her statement, Waters said she’s worried that Musk, who’s been the subject of SEC enforcement actions in the past, can help his own businesses and harm his competitors by using his access to confidential business information and his influence over the agency’s operations.
“Committee Democrats will use every tool available to combat this hostile takeover,” Waters said. “We will ensure that our nation’s capital markets remain fair, transparent, and free from manipulation, while continuing to serve the economy and support working-class families.”
Waters and Rep. Brad Sherman, D-Calif., in February sent a letter to SEC acting Chair Mark Uyeda seeking confirmation that Musk and his DOGE team would be barred from receiving access to the SEC. Waters said those requests were “ignored and disregarded.”
