The U.S. Government Accountability Office intends to investigate recent changes at the U.S. Securities and Exchange Commission, including those potentially influenced by the White House or Elon Musk’s Department of Government Efficiency. In a letter to Democratic lawmakers, the GAO, a nonpartisan research body of Congress, disclosed plans to review the SEC’s actions such as staff reductions, lease terminations, and operational streamlining. This follows requests from Senators Elizabeth Warren and Mark Warner for an investigation into reported transformations within the regulator overseeing U.S. capital markets. Managed by A. Nicole Clowers, the GAO’s congressional relations office confirmed that the review will commence in approximately three months. Since President Donald Trump’s administration assumed control and Republicans gained authority, the SEC has undergone significant restructuring, including the shelving of high-profile cases, reorganization of personnel, and constraints on enforcement activities. Amidst a wave of resignations, many employees are departing as part of efforts to restructure the federal government, led by Trump and special adviser Elon Musk. The GAO’s examination seeks to shed light on how recent governmental actions have impacted the SEC’s ability to fulfill its mandated duties. The SEC’s funding, derived from financial sector transaction fees rather than taxpayer money, is subject to congressional approval. The SEC’s revamp coincides with turbulent U.S. markets post-Trump’s tariff announcements, some of which were subsequently delayed. The US congressional watchdog’s inquiry into potential Musk-led changes at the SEC was reported by USA TODAY.
