Why Elon Musk’s Access to SEC Data Is Raising Eyebrows

The influence of Elon Musk now transcends the boundaries of the technology industry. As the billionaire expands his grip on key sectors – from electric cars to social media – his unprecedented closeness to the SEC raises burning concerns. Maxine Waters, an influential Democratic figure, sounds the alarm: Musk’s privileged access to the sensitive data of the financial agency could threaten market balance. Between conflicts of interest and systemic risk, the stakes go beyond mere corporate rivalries.

Elon Musk, the SEC, and the specter of conflict of interest

Maxine Waters’ warning is not a mere political formality. In March 2023, the California representative called out Mark Uyeda, acting chairman of the SEC, about the murky links between the agency and the Department of Government Efficiency (DOGE), an advisory entity led by Musk under the Trump administration.

The problem: the DOGE has no recognized legal status by Congress. Yet, according to reports, its teams may have access to strategic information from the SEC – a privilege usually reserved for licensed regulators.

For Waters, the consequences are clear: this access paves the way for devastating manipulations. She states:

Musk, repeatedly pursued by the SEC for violations of securities laws, could advantage his companies or sabotage his competitors.

A nightmarish scenario for investors, especially retirees, whose savings could evaporate in case of leaks or market disruptions.

But the concern goes further. Since joining the Trump administration as a special employee, Musk has orchestrated waves of layoffs in agencies like USAID or the CFPB.

Some ongoing lawsuits even accuse the DOGE of operating outside the legal framework. If the SEC became its next target, its credibility would erode – and with it, trust in financial markets.

An alliance that worries Wall Street

The case takes a more complex turn with the SEC’s central role in regulating cryptocurrencies.

The agency determines which tokens are classified as securities, a decision with significant repercussions for the industry.

However, since January, under the leadership of Uyeda and Trump, the SEC has dropped several lawsuits against crypto companies. A turnaround that strangely coincides with Musk’s ambitions, a fervent advocate of digital assets like Dogecoin.

A crucial question remains: does Musk intend to “purge” the SEC of elements deemed disloyal to Trump, as his past actions suggest? Recent appointments add to the confusion.

Paul Atkins, chosen by Trump to lead the agency, promised during his Senate hearing to absolutely collaborate with the DOGE. An ambiguous signal, as the Senate banking committee must rule on his nomination.

In this context, the crypto industry is holding its breath. A weakened or manipulable SEC could destabilize emerging regulations, creating a vacuum conducive to abuse.

Worse: if Musk exploits confidential data to influence decisions, even the agency’s independence would be compromised. Industry players, already wary of regulators, would see this as an additional reason to bypass the rules.

Maxine Waters’ warning is not a mere episode of partisan rivalry. It highlights a systemic risk: the porosity between private interests and public institutions.

Elon Musk, a disruptive genius to some, a sorcerer’s apprentice to others, embodies this paradox. His presumed access to the inner workings of the SEC could redefine the boundaries of corporate power – to the detriment of financial transparency. Discover also the bomb dropped by the CEO of BlackRock about the future of the dollar against bitcoin.