Elon Musk’s Department of Government Efficiency (DOGE) has landed at the Securities and Exchange Commission (SEC) to identify potential spending cuts, raising concerns about the agency’s future and its ability to regulate effectively.
Just a day after President Trump’s SEC nominee, Paul Atkins, appeared before the Senate Banking Committee, Elon Musk’s Department of Government Efficiency (DOGE) has arrived at the SEC. A team of Musk advisors arrived Friday at the agency, according to internal communications obtained by Bloomberg News. SEC staff were instructed to treat them as internal employees.
“In compliance with the president’s Executive Order establishing DOGE, the SEC is beginning to onboard members of the team,” an SEC spokesperson stated. The SEC has designated an internal team, including members from the offices of the chief operating officer, general counsel, human resources, and enforcement, to work with DOGE.
Musk’s DOGE has been actively involved in slashing the size of the federal government, claiming credit for halting programs, freezing spending, and reducing the workforce through buyouts and terminations. However, many of its actions have faced legal challenges.
The SEC is already preparing for a leaner future. Roughly 500 staffers, or 10% of its workforce, have accepted government-wide buyout and deferred-resignation offers. The agency also plans to eliminate leases for its offices in Los Angeles and Philadelphia, with the General Services Administration exploring ending the Chicago office’s lease. The most senior positions at regional offices have also been cut.
Critics argue that these cuts are counterproductive, pointing out that the SEC historically generates more revenue through fees and enforcement actions than it costs to operate. “In effect, the SEC pays for itself and costs taxpayers nothing,” a group of Columbia Law School professors wrote in a blog post. “Cutting its staff and budget is thus counterproductive and inflationary.”
Earlier in February, US Representatives Maxine Waters and Brad Sherman, both Democrats, raised concerns about the potential impact of DOGE on the SEC, citing Musk’s past interactions with the agency. “Given Mr. Musk’s history with the SEC, it is troubling that he may now be given influence over the agency’s operations,” they wrote to acting Chair Mark Uyeda.
Musk’s relationship with the SEC has been strained. During President Trump’s first term, the agency sued him after he tweeted that he had “funding secured” to take Tesla private. Musk and Tesla settled the case by paying $20 million apiece and Musk had to step down as chairman.
Days before Trump’s second inauguration, the SEC sued Musk again. This time, the regulator accused the billionaire of blowing the deadline to disclose his growing stake in Twitter before he tried to take over the social media platform in 2022.