A letter sent to Democratic lawmakers on Capitol Hill reveals that the U.S. Government Accountability Office will be examining recent changes at the U.S. Securities and Exchange Commission. The review will include any modifications made by the White House or Elon Musk’s Department of Government Efficiency. The GAO, Congress’ nonpartisan research arm, informed Senators Elizabeth Warren and Mark Warner that they will be investigating the SEC’s efforts to reduce staffing, terminate leases, and streamline operations. This decision follows concerns raised by the lawmakers regarding the regulator’s evolution, such as the arrival of DOGE and other significant developments. The GAO confirmed that the request falls within its authority and indicated that the examination will commence in approximately three months. Since President Donald Trump assumed office and Republicans gained control of the agency, the SEC has undergone substantial transformations, including the dismissal of prominent cases, reorganization of personnel, and limitations on enforcement staff’s investigative powers. The agency is also experiencing a wave of departures, with numerous employees accepting resignation offers amid a broader effort to downsize the federal government led by Trump and special adviser Musk. Warren and Warner emphasized the importance of understanding how the recent actions of the Trump Administration have impacted the SEC’s ability to fulfill its mission and legal obligations. While the SEC’s budget is determined by Congress, it is funded through transaction fees imposed on the financial sector rather than taxpayer dollars. These developments at the SEC coincide with unprecedented market volatility in the wake of Trump’s announcement of extensive tariffs on April 2, which were subsequently put on hold.
