DOGE Set to Review SEC Operations Following Recent Lawsuit

TLDR

• Elon Musk’s Department of Government Efficiency (DOGE) is preparing to investigate the SEC, with sources indicating their arrival is imminent
• The SEC recently sued Musk for allegedly underpaying Twitter stock investors by $150 million, leading to Musk calling the SEC a “totally broken organization”
• Democrats, including Rep. Maxine Waters, have expressed concerns about DOGE accessing sensitive SEC data, particularly the Consolidated Audit Trail
• The White House states Trump won’t allow conflicts of interest, and Musk has committed to recusing himself from potential conflicts
• DOGE has expanded its reach with over 30 affiliate pages on X and is seeking public input on SEC-related waste and abuse

Elon Musk’s Department of Government Efficiency (DOGE) is set to begin an audit of the Securities and Exchange Commission (SEC) in the coming days, according to sources close to the matter. The move marks the latest chapter in the ongoing tension between Musk and the federal regulator.

Two individuals briefed on the situation, speaking on condition of anonymity, confirmed DOGE’s pending arrival at the SEC. “They are at the gates,” one source stated, highlighting the immediacy of the upcoming review.

The examination of the SEC comes as part of President Donald Trump’s broader initiative to reduce federal spending and regulations. DOGE has already established more than 30 affiliate pages on X (formerly Twitter) to expand its oversight of various federal agencies.

😎 https://t.co/jGp5bQr2d9

— Elon Musk (@elonmusk) February 17, 2025

The timing of this audit follows recent conflict between Musk and the SEC. In January 2025, during Gary Gensler’s final days as chair, the SEC filed a lawsuit against Musk. The complaint alleged that Musk failed to properly disclose his Twitter stock purchases in 2022, resulting in investors being underpaid by more than $150 million.

Musk responded to the lawsuit on X, describing the SEC as a “totally broken organization.” He added that the agency focuses on such matters while “actual crimes go unpunished.”

DOGE’s SEC-focused affiliate account has already begun its work, posting a public call for information about “waste, fraud and abuse” within the agency. This approach mirrors similar requests made by other DOGE-affiliated accounts in recent days.

The White House has addressed concerns about potential conflicts of interest. Press Secretary Karoline Leavitt stated that President Trump has promised not to allow conflicts, and Musk has agreed to recuse himself from situations where conflicts might arise.

Currently, Mark Uyeda serves as the SEC’s acting Chair. He is expected to remain in this position until Paul Atkins, President Trump’s nominee for the role, receives confirmation.

Democratic lawmakers have voiced strong concerns about DOGE’s access to SEC information. Representative Maxine Waters and Representative Brad Sherman wrote to Acting Chair Uyeda about the matter. They specifically mentioned the Consolidated Audit Trail, a comprehensive system that monitors trading across U.S. markets.

In their letter, the lawmakers warned that giving access to “the world’s richest man, who has already demonstrated his disregard for the rule of law, would have devastating consequences on the integrity and safety of American markets.”

Beyond the SEC

The Trump administration has clarified Musk’s role in DOGE. An official stated that Musk serves as a special government employee but “plays no direct role in the work of those working across the administration to identify, expose, and uproot waste, fraud, and abuse.”

DOGE’s reach extends beyond the SEC. On February 17, 2025, a federal judge permitted DOGE to access sensitive student loan records from the Department of Education. The group is also seeking access to taxpayer data at the Internal Revenue Service.

The SEC has declined to comment on DOGE’s pending arrival.