SEC Starting to Hire DOGE Staff, According to Email – Insurance Journal

The Securities and Exchange Commission (SEC) is in the process of onboarding individuals associated with Elon Musk’s Department of Government Efficiency, according to an internal email sent to Department staff members. Specifically, the email notifies SEC staff members that the DOGE task force has contacted the regulator, indicating that these individuals will be treated as staff members for the purposes of network, system, and data access. The SEC is concurrently forming a liaison team with the aim of engaging with DOGE, as stated in the email, originally disclosed by Reuters.

The email articulated the SEC’s intentions to collaborate with DOGE officials, following proper protocols for ethics, IT security, system training, and establishing access limitations to restricted systems and data. A spokesperson for the SEC has confirmed the initiation of onboarding DOGE members, while there has been no immediate response from the DOGE task force. Furthermore, the SEC declined to comment on Elon Musk’s potential role within the agency in association with DOGE. Additionally, Musk himself has refrained from commenting on this matter.

The SEC, as the premier markets regulator in the United States, possesses a vast repository of non-public data from various entities, including confidential information regarding initial public offerings and supervisory examination records. While DOGE officials are anticipated to mainly engage with the SEC through the liaison team, staff members may be directly approached by DOGE representatives. In such cases, the staff has been advised to respond courteously, gather relevant information on the requests, but refrain from sharing substantive information without consulting the SEC’s liaison team beforehand.

This development with DOGE officials coincides with the ongoing transformation within the SEC, characterized by downsizing efforts and voluntary departures. More than 600 personnel have opted for resignation incentive programs, constituting about 12% of the agency’s workforce. The SEC’s budget is determined by Congress, and its funding is drawn from transaction fees imposed on the financial sector, thereby making it operationally cost-neutral for taxpayers, as indicated in the agency’s latest budget report submitted to Congress.

Paul Atkins, President Donald Trump’s nominee to head the SEC, has expressed willingness to collaborate with Musk’s team on efficiencies at the agency if confirmed. Currently, the acting Chairman of the SEC is Mark Uyeda. Elon Musk’s history with the SEC has been tumultuous, stretching back to past litigations and disputes. Notably, the agency filed a lawsuit against Musk for his delayed disclosure of a stake in Twitter back in 2022. Musk’s contentious relationship with the SEC dates back to 2018, starting with the lawsuit over his tweet asserting funding for Tesla’s privatization. Recent comments from Musk describe the SEC as a “totally broken organization.”

In summary, the SEC’s readiness to integrate DOGE staff and collaborate with the task force reflects an ongoing effort to adapt to new partnerships while maintaining regulatory integrity. The relationship between the SEC and figures like Elon Musk underscores the complex interplay between regulatory oversight and business interests in today’s financial landscape.