The U.S. Government Accountability Office (GAO) is reportedly planning to investigate the changes implemented at the U.S. Securities and Exchange Commission (SEC). The probe will focus on alterations led by the White House and Elon Musk's Department of Government Efficiency.
What Happened: GAO has reportedly communicated to Sen. Elizabeth Warren (D-Mass.) and Mark Warner (D-VA) about its intention to scrutinize the SEC's recent actions, including staff reductions, lease terminations, and work consolidation, as detailed in an April 8 letter viewed by Reuters.
The GAO's decision to investigate was reportedly triggered by requests from lawmakers in response to media reports highlighting significant changes at the SEC, a body that oversees U.S. capital markets. The GAO confirmed that such a request falls within its purview and expects to commence the investigation in roughly three months.
Since President Donald Trump's administration took the helm, the SEC has undergone considerable changes, including the dismissal of high-profile cases, staff reorganization, and restrictions on enforcement staff's ability to initiate formal investigations. The commission is also seeing a wave of departures, as hundreds of employees accept resignation offers amid ongoing efforts to revamp the U.S. government.
Trump, alongside special advisor Musk, is spearheading a significant downsizing across federal agencies. The senators emphasized the need for Congress and the public to comprehend the impact of these recent actions on the SEC's ability to fulfill its mission and statutory obligations.
Why It Matters: The shake-up at the SEC comes amid significant market volatility triggered by Trump's April 2 announcement of sweeping tariffs, which he later put on hold.
This development also comes days after Senate Democrats urged the SEC to investigate Trump and others for possible market manipulation linked to the tariff pause. Minority Leader Chuck Schumer, Elizabeth Warren (D-Mass.) and Adam Schiff (D-Calif.) wanted a probe to ascertain if "Trump, any members of his cabinet, or other donor, insiders, and Administration officials engaged in insider trading."
The SEC's recent changes have also been a point of contention, particularly in the cryptocurrency industry. Crypto leaders, including Coinbase Global
