The U.S government watchdog, overseen by Elon Musk, is seeking reports on SEC inefficiencies, sparking debate within the crypto industry
The United States Department of Government Efficiency (D.O.G.E.), spearheaded by Elon Musk, has called for public input on “fraud and abuse” within the Securities and Exchange Commission (SEC), sparking fears for the cryptocurrency industry.
“D.O.G.E. is seeking help from the public!”, the official ‘DOGE SEC’ X account wrote in a post on Monday.
“Please DM this account with insights on finding and fixing waste, fraud and abuse relating to the Securities and Exchange Commission.”
The move has ignited debate within the crypto industry. While some see it as a necessary step toward regulatory reform, others fear it could derail recent progress in SEC-crypto relations.
After years of aggressive enforcement, the SEC has recently softened its stance, dropping lawsuits and engaging with industry leaders on regulatory frameworks.
Since being appointed by President Donald Trump to lead the U.S Government’s newly-established D.O.G.E., Musk has aggressively pursued government downsizing, implementing mass layoffs across federal agencies.
Musk’s actions thus far suggest that the SEC will likely face budget cuts or restructuring. However, industry leaders warn that diminishing the SEC’s role could have unintended consequences.
Hester Peirce, a longtime crypto advocate and head of the SEC’s Crypto Task Force, has cautioned against excessive downsizing.
“We have a lot of really fantastic people at the SEC doing important work,” Peirce said in a Bloomberg interview on February 11.
“U.S. capital markets are not just large, they are the most significant in the world. It’s about striking the right balance and using our resources effectively.”
Others in the industry remain skeptical. Paul Grewal, chief legal officer at Coinbase, has called for stricter accountability measures against the SEC.
“Defendants who defeat SEC lawsuits get all their attorney fees and costs from the Commission budget,” he argued in a tweet.
