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White House Distances Itself from Musk on SEC Investigation

David Marsanic
David Marsanic
David Marsanic
Author:
David Marsanic
News writer
February 19th, 2025
Editor:
Joseph Alalade
Joseph Alalade
Editor:
Joseph Alalade
News Lead and Editor
Joseph is a content writer and editor who has actively participated in crypto for over 6 years. He enjoys educating others about Web3 and covering its updates, regulatory developments, and exciting stories.

The Elon Musk-backed Department of Government Efficiency (DOGE) has been making big moves since its start. However, its unorthodox approach to cutting government waste is causing significant controversies among the establishment. Most recently, Musk found its most controversial target: the Securities and Exchange Commission (SEC).

The billionaire alleges SEC’s abuses concerning the treatment of crypto assets. Critics argue against him, pointing out that the SEC has sued Musk multiple times and raised questions about conflicts of interest. In response, the current administration had to address these concerns.

On Monday, February 17, the White House distanced itself from Musk’s attack on the SEC. Press Secretary Karoline Leavitt stated that Musk has “no direct role” in the administration’s efforts to “uproot waste, fraud, and abuse.” Leavitt also stated that Musk will recuse himself of any potential conflict of interest.

Elon Musk’s SEC Investigation Prompts Mixed Reactions

The response to Musk’s efforts to expose the SEC was mixed. Many critics have been vocal about the potential abuse and harm of giving sensitive data to unauthorized people. At the same time, many in the crypto community welcome the move, highlighting ongoing distrust of the federal government regulatory agency.

Last week, representatives Maxine Waters and Brad Sherman warned of “dangerous consequences” if Musk took over the SEC. They warned of a potential for “market manipulation and data breaches” if unauthorized persons gain access to the SEC’s data.

“Elon Musk and his DOGE team have been raiding federal agencies, gaining unauthorized access to sensitive systems,” the statement writes.

The statement further highlighted the SEC’s history with Musk, citing multiple lawsuits and fines as evidence of potential conflicts of interest.

At the same time, many in the crypto community welcome the move, as comments on SEC’s X posts are overwhelmingly negative, with many cheering for DOGE to take on the agency.

This is despite the fact that the agency is under new leadership, under Trump-appointed Acting Chair Mark Uyeda. Notably, Uyeda declined to comment on Musk’s efforts to expose the agency he now runs.

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