GAO to Investigate SEC Overhaul and Musk-Backed Government Reforms 

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United States: The U.S. Government Accountability Office intends to review operations at the U.S. Securities and Exchange Commission and White House initiatives and Department of Government Efficiency reforms headed by Elon Musk based on a letter sent to lawmakers on Capitol Hill, as reported by Reuters. 

Senators Raise Concerns Over SEC Downsizing 

The GAO notified senators Elizabeth Warren and Mark Warner they would investigate recent SEC staff reductions, leasing terminations, and operational consolidation efforts through a letter provided to Reuters on April 8. 

When Reuters and media outlets documented major changes happening at the capital market regulator alongside the news of DOGE’s arrival, the lawmakers sent an inquiry to the watchdog during the previous month. 

According to A. Nicole Clowers at GAO’s congressional relations office said the specified review falls under GAO’s official mandate and will start in approximately three months. 

Since Trump became president and Republicans gained control over the SEC, their enforcement activities have evolved. The agency stopped major cases and reshaped the employee structure while restricting formal inquiry authority for staff members.

Enforcement Cuts and Staff Resignations at SEC 

Hundreds of commission workers accepted resignation offers during the effort to restructure the U.S. government. Through their special advisory role, Musk is supporting Trump in a major restructuring effort throughout federal agencies. 

Calls for Transparency and Accountability 

“It is essential that Congress and the public understand how the Trump Administration’s recent actions have affected the SEC’s ability to carry out its mission and statutory obligations,” Warren and Warner said in a March 28 letter to the GAO. 

According to the agency, the SEC obtains its funding through transaction fees that it collects from the financial sector while operating under a budget set by Congress, as reported by Reuters. 

The SEC’s restructuring takes place during a period of extreme market instability after Trump announced massive tariffs in April before ultimately suspending them.