The Elon Musk-guided Department of Government Efficiency (Doge) focuses on the US Securities and Exchange Commission (SEC) in its efforts to reduce waste in government spending.
In a post of 17 February on X, Doge insisted on individuals with knowledge of inefficiencies or unethical behavior on the SEC to come forward. The agency invited specific messages specifically, which indicates a broad effort to discover internal problems.
It explained:
“Doge is looking for help from the public! DM this account with insights about finding and determining waste, fraud and abuse with regard to the Securities and Exchange Commission. “
This step indicates the potential plans of Doge to apply similar measures to the SEC as with other government entities.
In the past month, the Department has introduced widespread reforms, including staff reductions, to curb inefficiencies. However, the agency has had to deal with a considerable pushback, with many, including judge Tanya Chutkan, Reportedly express concern about her activities.
Crypto community responds
Doge’s request for public input has inflamed discussions in the crypto community.
Paul Grewal, Chief Legal Officer of Coinbase, suggested a policy that the SEC is obliged to reimburse the legal costs for companies that successfully dispute its enforcement actions.
The argument of Grewal stems from the several legal losses of the SEC under former chairman Gary Genler.
In one case against debt box, the supervisor has admitted inaccuracies in its statements, so that a court ordered the sec to cover the legal costs of the company. This prevailing doubt acts doubts about the credibility of the agency and emphasized concern about his enforcement practices.
In addition to legal disputes, crypto lawyers believe that the probe of doge could shed light on the approach of the SEC for digital assets regulations.
Under Genler, the agency claimed various cryptocurrencies, including Cardano (ADA) and XRP, as effects, the activation of legal battles and market uncertainty.
Critics claim that these decisions have damaged investors instead of protecting them. They hope that the research by Doge will alleviate how these decisions were made and influence future policy changes.
Crypto lawyer Dan Gambardelllo said:
“You should investigate that one time, SECL stated that altcoins such as Cardano are effects that wipe out millions and millions of retail investors. The SEC and their actions under Gensler did exactly the opposite of protection investors. “