Cardano Founder Reacts as Elon Musk’s DOGE Investigates SEC

Cardano founder Charles Hoskinson expresses enthusiasm after the Department of Government Efficiency (DOGE) launches an investigation into the SEC. 

In a tweet on Monday, the Department of Government Efficiency, spearheaded by Elon Musk, suggested it was investigating the SEC to potentially reveal waste, fraud, and abuse within the securities agency. 

The move follows DOGE’s creation of multiple X accounts for federal agencies, including the SEC and the IRS. 

Notably, the SEC-focused DOGE account called for public assistance in unraveling misconduct at the agency, particularly those related to waste, abuse, and fraud. It asked the public to send direct messages on these issues to aid the ongoing investigation. 

Cardano Founder Excited 

Expectedly, DOGE investigating the SEC has garnered significant attention within the crypto community, triggering reactions from top stakeholders like Hoskinson.  

Reacting, the Cardano founder shared a GIF of an excited man with the caption ‘so happy.’ This suggests that Hoskinson is pleased that the United States government is auditing the U.S. SEC to identify and fix waste, fraud, and abuse relating to the securities agency. 

Hoskinson’s reaction aligns with a sentiment similar to that shared across the broader crypto community. This stems from the SEC’s aggressive stance toward the crypto industry, which saw the previous administration regulate the sector majorly through enforcement actions. 

Although the SEC did not directly charge Hoskinson or the team behind the Cardano project with securities law violations, it labeled ADA a security in different litigations against exchanges like Coinbase and Binance. 

Coinbase and Ripple CLO React 

Besides Hoskinson, other top crypto executives like Coinbase CLO Paul Grewal and Ripple CLO Stuart Alderoty also reacted to the government’s audit of the SEC. 

Notably, Grewal shared a tip on how the government can fix fraud, waste, and abuse at the SEC. According to him, a new rule should require the SEC to cover the attorney fees and legal costs of defendants who triumph over the agency in court.

Meanwhile, Alderoty remarked, “I have the receipts,” suggesting that he possesses evidence that could potentially implicate the SEC’s misconduct. 

I have the receipts

— Stuart Alderoty (@s_alderoty) February 17, 2025

It bears mentioning that Coinbase and Ripple are currently embroiled in separate lawsuits against the SEC. While the Coinbase lawsuit is still in a district court, the Ripple case is currently being appealed. 

Both Alderoty and Grewal have been vocal critics of the SEC regulation approach and litigation strategy, which they believe hinders innovation in the U.S. 

However, the new SEC leadership is working to address some of these concerns. It is also making efforts to establish transparent and fair regulation for the industry through its crypto task force.