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The U.S. Securities and Exchange Commission (SEC) "is beginning to onboard members" of Elon Musk's Department of Government Efficiency (DOGE), an SEC spokesperson told Newsweek on Friday.
The move comes after the commission sued Musk over alleged violations of securities laws related to his failure to disclose his Twitter shares in a timely manner before acquiring the social media platform, now known as X, in 2022.
Why It Matters
Musk has a long history of clashes with the SEC, which has fined him and his companies millions of dollars and, most recently, sued him over his delayed disclosure of Twitter shares.
He has called the commission "totally broken," arguing that "there are so many actual crimes that go unpunished," unlike his case.
The billionaire heads DOGE, a White House task force seeking to shrink the federal government and root out waste, fraud, and abuse across agencies and departments.
What To Know
An SEC spokesperson told Newsweek in an email Friday: "In compliance with the President's Executive Order establishing DOGE, the SEC is beginning to onboard members of the team." Trump established shortly after taking office on January 20.
In an internal SEC email sent to staff on Friday and reviewed by Reuters, the SEC said DOGE task force members would be granted SEC staff-level access to networks, systems, and data.
The SEC is forming a liaison team seeking to partner with DOGE, with the email stating: "Our intent will be to partner with the DOGE representatives and cooperate with their request following normal processes for ethics requirements, IT security or system training, and establishing their need to know before granting access to restricted systems and data."
The email cautioned SEC staff against sharing information with DOGE members without first consulting the agency's liaison team, stating, "please do not provide any substantive information" prior to consultation.
Earlier this year, the SEC sued Musk over alleged violations of securities laws, accusing him of failing to disclose his purchase of Twitter stock before acquiring the company. The agency alleges the delay allowed Musk to buy additional shares at lower prices and acquire Twitter for at least $150 million less than he otherwise would have paid.
Musk and his lawyers have called the case a "sham." The case was filed on January 14. Musk was served summons at his SpaceX Starbase facility in Brownsville, Texas, on March 14, according to court documents reviewed by Newsweek.
What People Are Saying
DOGE SEC, the official account of the DOGE SEC task force, wrote in a February X post: "DOGE is seeking help from the public! Please DM this account with insights on finding and fixing waste, fraud and abuse relating to the Securities and Exchange Commission."
Senator Tim Scott, a South Carolina Republican, said during a Fox Business appearance Friday: "Under President Trump, Paul Atkins is going to be a STUD. It's a genius choice. Here's a man who's committed his life to making sure that capital forms in America."
What Happens Next
Trump's nominee to lead the agency, Paul Atkins, told lawmakers on Thursday that he would "definitely" work with DOGE members on efficiencies. Atkins appeared before Congress for his confirmation hearings.
The SEC has undergone a massive restructuring, with over 10 percent of its workforce participating in buyout programs and leaving their posts.
Update 3/28/25, 12:10 p.m. ET: This article has been updated with additional information.
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About the writer
Mandy Taheri is a Newsweek reporter based in Brooklyn. She joined Newsweek as a reporter in 2024. You can get ... Read more