Waters Warns of ‘Dire Consequences’ if Musk Gains Access to SEC Data

Rep. Maxine Waters, the top Democrat on the House Financial Services Committee, has sounded the alarm over reports that Elon Musk’s team may gain access to sensitive Securities and Exchange Commission (SEC) data and systems. This follows a February letter Waters sent to acting SEC Chair Mark Uyeda expressing deep concerns. In a March 31 statement, she reiterated her warning, emphasizing the potential for \”dire consequences\” for investors.

Waters highlighted the inherent conflicts of interest, stating that Musk’s access to confidential information could benefit his own businesses while harming competitors. She also voiced concerns about increased risks of data breaches and market disruptions, potentially leading to significant financial losses for investors.

The controversy centers around Musk’s so-called \”Department of Government Efficiency,\” which has been accused of pursuing a controversial cost-cutting strategy in multiple government agencies. The potential implications for SEC operations remain unclear, with several lawsuits challenging the legality and constitutionality of the group’s actions. The SEC, a key regulator in the cryptocurrency space, has been under scrutiny for its recent decisions, including dropping several lawsuits against crypto firms since January.

While the exact nature of the proposed access remains uncertain, Waters’ strong statement underscores the serious concerns surrounding potential conflicts of interest, data security, and market stability. The situation highlights the ongoing tension between government efficiency initiatives and the critical need for regulatory integrity and investor protection.

The potential impact on the cryptocurrency market, already subject to intense SEC scrutiny, adds another layer of complexity to this unfolding situation. The SEC’s role in regulating crypto assets is central to the ongoing debate around digital currencies and their future in the US financial system.

Cointelegraph has reached out to Acting Chair Uyeda and SEC Commissioner Caroline Crenshaw for comment. This story will be updated as more information becomes available.