The Department of Government Efficiency Targets SEC
The Elon Musk-led Department of Government Efficiency (DOGE) is focusing on the US Securities and Exchange Commission (SEC) to cut down on wasteful government spending.
DOGE’s Call for Transparency
In a recent post on X, DOGE encouraged individuals with information regarding inefficiencies or unethical behavior at the SEC to step forward. The agency is actively seeking direct messages to uncover internal issues.
“DOGE is seeking help from the public! Please DM this account with insights on finding and fixing waste, fraud, and abuse relating to the Securities and Exchange Commission.”
This initiative indicates DOGE’s intention to implement similar actions against the SEC as it has with other government entities. The department has already implemented various reforms, such as workforce reductions, to address inefficiencies.
Despite these efforts, DOGE has encountered resistance, with individuals like Judge Tanya Chutkan expressing concerns about the agency’s operations.
Crypto Community Response
DOGE’s call for public input has sparked conversations within the crypto community. Coinbase’s Chief Legal Officer, Paul Grewal, proposed a policy that would require the SEC to reimburse legal costs for companies that successfully challenge its enforcement actions.
Grewal’s proposal stems from the SEC’s legal losses under former Chair Gary Gensler. In a case involving Debt Box, the regulator acknowledged inaccuracies in its statements, leading to a court order for the SEC to cover the company’s legal expenses. This incident raised questions about the agency’s credibility and enforcement practices.
Crypto advocates believe that DOGE’s investigation could provide insight into the SEC’s approach to digital asset regulation. Under Gensler, the SEC classified cryptocurrencies like Cardano (ADA) and XRP as securities, resulting in legal disputes and market uncertainty.
Critics argue that these decisions negatively impacted investors. They hope that DOGE’s inquiry will shed light on the decision-making process and influence future policy changes. Dan Gambardello, a crypto advocate, expressed his concerns about the SEC’s actions under Gensler.
“You should look into that one time SEC declared that altcoins like Cardano are securities, wiping out millions of retail investors. The SEC and their actions under Gensler did the exact opposite of protect investors.”
