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- Under Elon Musk’s leadership, the Department of Government Efficiency has announced an audit into the SEC over fraud, abuse, and waste allegations.
- Crypto executives, including Charles Hoskinson, the founder of Cardano, have responded positively to the DOGE audit.
The Department of Government Efficiency (D.O.G.E), an initiative led by Elon Musk, co-founder of Tesla, has launched an investigation into the United States Securities and Exchange Commission (SEC). The DOGE_SEC account, is calling for public involvement, urging individuals to share any information regarding the SEC’s actions.
In a tweet, the account stated, “DOGE is seeking help from the public! Please DM this account with insights on finding and fixing waste, fraud, and abuse.”
In addition to this public outreach, D.O.G.E has filed a request to access a classified IRS system, with the goal of uncovering long standing inefficiencies within the U.S. government. If granted, this request would allow DOGE officials to access sensitive IRS data, including tax returns and banking information.
Cardano Founder Reacts
The announcement of the SEC audit by DOGE has sparked mixed reactions. Charles Hoskinson, founder of Cardano, responded positively to the probe by sharing a GIF of a man with the caption, “So happy.” His reaction reflects a broader sentiment in the crypto community, where many see the audit as a much-needed intervention in the SEC’s handling of cryptocurrency regulation. Although the SEC did not directly charge Hoskinson with securities law violations, it did label ADA as a security in lawsuits against exchanges like Coinbase and Binance, along with other tokens like Polygon (MATIC) and Filecoin (FIL).
Similarly, Coinbase’s Chief Legal Officer, Paul Grewal, has proposed a rule requiring the SEC to reimburse legal fees for defendants who successfully challenge its lawsuits. This proposal, gaining traction among crypto advocates, seeks to reduce the burden on defendants who believe the SEC has been overly aggressive in its actions.
Meanwhile, Ripple’s Chief Legal Officer, Stuart Alderoty, has teased significant developments in the Ripple case, stating, “I have the receipts.” This cryptic remark suggests that crucial documents revealing the SEC’s actions may soon surface, potentially influencing the ongoing legal battle’s outcome.
These reactions are expected, given Chair Gary Gensler’s aggressive stance on cryptocurrency regulation. In a 2021 speech, Gensler referred to the market as “the Wild West,” highlighting his tough approach to overseeing the industry. Court filings in several crypto cases, including those with Binance, Coinbase, and Lejilex, have requested extensions, citing the newly established Crypto Task Force’s potential role.
These extensions may align with Paul Atkins’ confirmation as SEC Chair. The appointments of Mark Uyeda as Acting Chair and Hester Peirce leading the task force suggest the SEC is shifting its approach to handling crypto cases, particularly those not involving fraud.
