Musk’s SEC access risks ‘dire consequences’ for investors

U.S. Representative Maxine Waters has reiterated warnings that granting Elon Musk’s Department of Government Efficiency (DOGE) access to SEC systems could endanger investor protections and create conflicts of interest.

In a March 31 notice, Waters emphasised that such access would expose the agency to data breaches and market disruptions, potentially costing retirees their savings.

Musk’s DOGE team, an advisory body to former President Donald Trump, has reportedly sought access to SEC data and systems.

“[...] 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 [...] losing their hard-earned savings,” criticised Waters.

She also highlighted Musk’s history of SEC enforcement actions, warning that access to confidential information could allow him to “benefit his own businesses and harm his competitors.”

The SEC, a key regulator of cryptocurrency markets, has faced scrutiny under acting Chair Mark Uyeda and Trump’s administration.

Since January, the agency has dropped several lawsuits against crypto firms, raising questions about its enforcement priorities.

DOGE’s reported SEC infiltration coincides with the Senate Banking Committee’s consideration of Paul Atkins, Trump’s nominee to chair the SEC.

During his confirmation hearing, Atkins stated he would “definitely” collaborate with DOGE, prompting concerns about conflicts of interest.

Waters’ warnings follow broader criticism of DOGE’s actions, including lawsuits alleging unconstitutional firings at agencies like the Consumer Financial Protection Bureau.

The SEC has not publicly confirmed whether DOGE has accessed its systems, and officials declined to comment on the matter.