Trump’s SEC Leadership Under Focus by Watchdog
The US Government Accountability Office (GAO) has started an investigation of the Securities and Exchange Commission’s (SEC) leadership under Donald Trump, citing allegations of wholesale regulatory overhauls and escalating ethical issues about Trump’s cryptic activities.
The move comes after a request by Democratic Senators Elizabeth Warren and Mark Warner for an inquiry into SEC reform that purportedly erodes its enforcement capabilities.
GAO Adresses Concerns of SEC Independence
The GAO on April 14 officially announced in a letter that it will investigate the means by which politically appointed SEC leaders have changed the agency to be less independent. Among concerns are staff cuts and new policies requiring prior approval for pursuing investigations.
The SEC lawyers told Reuters in February that the agency’s new management directed investigators to obtain approval prior to advancing enforcement cases—a shift that watchdogs claim would impede accountability.
Staff Exodus and Golden Handshakes
Since its takeover, staff exodus is what the SEC has experienced. Sources indicate the agency offered well-crafted severance deals to employees willing to leave voluntarily, further stripping it of its institutional strength.
Watchdog organization Accountable.US criticized the agency’s retreat from its traditional enforcement role, warning that it was potentially leaving investors in greater danger, especially in high-speed areas like cryptocurrency.
Crypto Empire Raises Red Flags
Trump’s heightened involvement in the cryptocurrency sector is generating additional suspicion. Representative Maxine Waters accused the previous president of utilizing his office to become wealthy through ventures like the Official Trump (TRUMP) coin and World Liberty Financial Inc. (WLFI).
Waters charges that Trump made $2 billion in his crypto dealings. She and Warren flagged foreign manipulation via crypto as a danger. The pair pointed to the $30 million investment by Tron founder Justin Sun in WLFI, followed by his appointment as an advisor—a potential entry point for foreign nations to introduce influence into U.S. policies.
Political Power Meets Crypto Profits
Trump critics argue that Trump is positioning himself to be a “crypto king” by unraveling regulatory watch, causing a conflict of interest that can unsettle financial markets.
The GAO investigation can provide insight into how far Trump’s crypto affiliations have influenced regulatory reforms—and whether government overseers can reclaim control over an agency at the center of investor protection.
