DOGE’s involvement in the SEC’s regulations raises serious concerns

The Department of Government Efficiency is pushing the SEC to ease regulations around Special Purpose Acquisition Companies (SPACs) and confidential reporting by private investment funds. DOGE Officials at the SEC said companies have described the regulations as burdensome and unnecessary.

SPACs are listed shell companies that raise funds to acquire a private company to take it public, removing the need for a traditional initial public offering. The SEC under Biden cracked down on the sector, which was deployed by Lucid Motors, DraftKings, and Trump’s social media operation, amid concerns over weak diligence compared to the more rigorous IPO process.

Trump’s administration push for fewer regulatory burdens

DOGE is reportedly pushing the SEC to relax rules on SPACs and private fund reporting.

It could make it easier for companies to go public via SPACs, lower compliance costs and reduce oversight of private funds.

Trump signed an executive order in February instructing DOGE… pic.twitter.com/UMu77z6Ta8

— kristen shaughnessy (@kshaughnessy2) July 1, 2025

Two sources familiar with the matter said DOGE officials at the U.S. markets watchdog have had meetings with staff recently to explore loosening some regulations, including Biden-era rules adopted on blank-check companies. The officials also advocate for fewer requirements for private investment advisers to disclose more data so regulators can detect systemic risk confidentially.

Although the efforts have not been implemented, Trump’s administration is also advocating for a similar deregulatory push, saying it wants to stimulate economic growth by slashing government oversight. In a February executive order, Trump directed the department’s officials to identify regulations the administration may want to eliminate for reasons such as imposing undue costs on businesses.

The sources also revealed that some SEC officials were not pleased by DOGE’s involvement in crafting new policies. According to the sources, the regulator’s officials are concerned about the involvement of the White House in the works of the SEC, which has long operated independently.

The financial watchdog adopted the SPAC and private funds regulations under the Biden administration to shield investors and prevent risks to financial stability in the private funds sector.  Taylor Rogers, a White House spokesperson, said DOGE was working with the SEC to maintain fair and orderly markets while better protecting everyday investors. 

“Under President Trump’s leadership, Chairman [Paul] Atkins and the SEC will ensure that the United States remains the best and most secure place in the world to invest and do business. The SEC is working with DOGE to find cost efficiencies and ensure public funds are being used as effectively as possible.”

-Taylor Rogers, Assistant Press Secretary at the White House.

Current and former officials disclosed to Reuters that the agency is led by a presidentially appointed chairman who ensures that the Commission’s regulatory agenda doesn’t deviate drastically from White House priorities. The experts said the SEC has long been considered an independent agency from the White House through legal protections and decades of norms. 

DOGE’s involvement in the SEC’s regulations raises serious concerns

Amanda Fischer, policy director and chief operating officer at financial reform advocacy group Better Markets, argued that any DOGE involvement in the SEC’s legislation raises serious concerns about potential conflicts of interest and political influence dominating staff expertise. Fischer, who previously worked as the chief of staff of former SEC Chair Gary Gensler, said it’s outrageous that outside officials at the agency, who were not selected by the chair, have a say in rulemaking activities.

The deregulatory pressure by DOGE compares with traditional Republican views that the SEC may have previously pursued under its new leadership. Republican SEC Commissioners Mary Uyeda and Hester Peirce have previously both dismissed what they claimed were needless regulatory burdens for SPACs and private funds.

After talks with U.S. exchange operators to loosen some regulatory requirements for SPACs, the SEC has also been pushing to dismantle such regulations. The agency suggested shell companies raise funds through a listing to acquire a private company.

Uyeda and Pierce have also objected to changes such as removing a safe harbor that had helped shield SPAC sponsors from legal liability for unrealistic or potentially misleading financial projections. The SEC officials said at the time that the rule would inhibit a potentially valuable investor tool.

Chairman Paul Atkins said in May that welcoming DOGE into the SEC had resulted in $90 million in cost savings at the independent financial regulator. The agency also argued that its turnover was through voluntary exits, pointing to retirements and individuals who considered the Trump administration’s deferred resignation offer.

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