YEREVAN (CoinChapter.com) — Elon Musk’s D.O.G.E. has launched an investigation into the Securities and Exchange Commission (SEC), seeking reports from the public on waste, fraud, and abuse. A recent announcement invited individuals to submit any relevant information about SEC inefficiencies.
Elon Musk Endorses D.O.G.E. SEC Investigation Into Alleged Waste and Fraud. Source: XPolitico reports that Musk’s D.O.G.E. is set to arrive at the SEC in the coming days, citing sources familiar with the matter.
“They are at the gates,”
a source stated in the Feb. 17 report.
Since its formation, D.O.G.E. has implemented staff cuts across multiple agencies. The SEC investigation signals a possible reduction in its workforce. Critics argue that this could affect the agency’s ability to manage crypto regulation.
Crypto Industry and the SEC’s Changing Relationship
The crypto industry had long opposed SEC policies, particularly under former Chair Gary Gensler. After his exit, the agency started shifting its approach, dropping lawsuits and consulting industry leaders on crypto regulation.
With Donald Trump’s administration promoting pro-crypto policies, the SEC investigation raises concerns about whether further agency changes could disrupt crypto regulation. Some in the crypto industry see the SEC investigation as necessary, while others believe it could remove key figures working on industry reforms.
Hester Peirce Defends SEC Staff Against D.O.G.E. Cuts
Hester Peirce, an SEC commissioner known for her stance on crypto regulation, has opposed drastic SEC workforce cuts. She stated that experienced personnel are necessary for balancing crypto industry needs with regulatory oversight.
“We have a lot of really fantastic people at the SEC, who are doing really important work,”
Peirce said.
“One thing to remember is that capital markets in the US are not just large but also the most important in the world. There’s always more we can do. It’s about getting the balance right.”
Hester Peirce States Most Memecoins Are Outside SEC Jurisdiction in Bloomberg Crypto Interview. Source: BloombergHer comments highlight divisions in the crypto industry. Some believe that reducing SEC policies would create a less restrictive regulatory environment, while others argue that experienced regulators are needed to shape crypto regulation.
Coinbase’s Paul Grewal Pushes for SEC Penalties
Paul Grewal, Coinbase’s Chief Legal Officer, wants the SEC to pay legal fees for failed enforcement actions, compensating companies that fought SEC lawsuits.
His proposal comes amid ongoing disputes over SEC policies in the crypto industry. Hester Peirce, however, emphasizes the need for a well-staffed SEC to maintain balanced crypto regulation, taking a different stance on the issue.
Paul Grewal Calls for SEC to Cover Legal Fees for Failed Lawsuits. Source: XNotably, potential changes at the SEC could also disrupt ongoing policy developments, affecting the crypto industry. The investigation’s impact remains uncertain as discussions over regulatory oversight continue.
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