The Department of Government Efficiency (DOGE) officially announced on 17 February 2025 an investigation into the Securities and Exchange Commission (SEC) for allegedly engaging in fraud, abuse, and waste.
Shortly after the announcement, the DOGE memecoin price surged 20%, rising to $0.42 from $0.35. Trading volumes of DOGE/USD pairs also saw a near-double increase from the previous day on major exchanges.
DOGE’s Investigation Into SEC Generates Mixed Reactions
The announcement from Elon Musk’s government agency comes amid recent acknowledgments by the SEC of various cryptocurrency ETF filings, including Grayscale’s application for a DOGE ETF. While this does not guarantee approval, it indicates a potential shift to a more open-minded approach to crypto-based products.
Furthermore, it comes at a time when the SEC is concluding its high-profile legal battle with the SEC. However, the news elicits different responses.
For instance, the acting SEC Chair Mark Uyeda cautioned of “dangerous consequences” should illegal groups have access to confidential SEC systems and data.
Meanwhile, Hedt-Gaud, director of affairs for Project On Oversight, a nonpartisan watchdog group, spoke very differently. He said,
“There is definitely waste, fraud, and abuse along with improper payments and inefficiencies.”
Social media conversations also clearly show the split attitude; some view this as a long-overdue review of regulatory policies while others warn against possible SEC reprisal actions.
Challenges Surrounding the Investigation
Currently, there are nineteen state attorneys general who have filed a lawsuit against the Trump administration. Their allegations are regarding violations of privacy laws and raising cybersecurity concerns about access to sensitive financial data.
Furthermore, a federal judge in New York has temporarily blocked the Department of Government Efficiency (DOGE) from accessing Treasury Department records containing sensitive personal data.
The legal resistance highlights the challenges and conflict in juggling initiatives to increase government efficiency with regard to safeguarding citizen privacy and data security.
The investigation questions established power relations between authorities and the governed. The result might affect the next rules on cryptocurrencies, SEC enforcement actions, and the general interaction between the crypto business and government control.
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