Rep. Maxine Waters Warns of 'Dire Consequences' if Elon Musk Gains Access to SEC Systems
Luisa Crawford Apr 01, 2025 09:12
U.S. Representative Maxine Waters (D-Calif.), the top Democrat on the House Financial Services Committee, has issued a renewed warning over reports that Elon Musk and his advisory group, the Department of Government Efficiency (DOGE), could be granted access to internal systems and data at the Securities and Exchange Commission (SEC).
U.S. Representative Maxine Waters (D-Calif.), the top Democrat on the House Financial Services Committee, has issued a renewed warning over reports that Elon Musk and his advisory group, the Department of Government Efficiency (DOGE), could be granted access to internal systems and data at the Securities and Exchange Commission (SEC).
In a statement released on March 31, Waters reiterated concerns first raised in a February letter to acting SEC Chair Mark Uyeda, cautioning that granting Musk’s team access to sensitive regulatory infrastructure could pose significant risks to investor protection and market stability.
“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-earned savings,” Waters said.
She further warned that Musk, who has been subject to multiple SEC investigations and enforcement actions in the past, could potentially use privileged access to advance his own business interests and undermine competitors.
Concerns Over DOGE’s Role and Authority
DOGE, which is not an official federal agency created by Congress, functions as an advisory body to President Donald Trump. It is reportedly tasked with streamlining government operations, but critics argue its structure lacks formal oversight and could violate federal laws.
Reports indicate that members of Musk’s DOGE team have made contact with SEC officials and may soon gain access to internal systems. The move has raised alarms among lawmakers and legal experts, especially given DOGE’s involvement in the termination of staff at several federal agencies, including USAID and the Consumer Financial Protection Bureau (CFPB). These actions have already prompted multiple legal challenges.
SEC's Role in Crypto Regulation at Stake
The controversy comes at a pivotal time for the SEC, which plays a critical role in overseeing U.S. financial markets, including the cryptocurrency sector. Since early 2025, under the Trump administration, the commission has dropped several lawsuits targeting crypto firms for alleged securities law violations.
Waters expressed concern that DOGE’s influence could further erode the agency’s independence and weaken its enforcement capabilities.
“Musk, who has been the subject of repeated SEC enforcement actions, can benefit his own businesses and harm his competitors by using his access to confidential business information,” she stated.
Awaiting New Leadership at the SEC
The SEC’s leadership remains in flux as the Senate Banking Committee prepares to vote on the nomination of Paul Atkins as the next SEC Chair. During a March 27 confirmation hearing, Atkins said he would be open to working with DOGE if confirmed. Democratic lawmakers pressed him on potential conflicts of interest, particularly regarding the crypto industry.
The SEC did not respond to requests for comment from media outlets at the time of publication.
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