Elon Musk's initiative, the Department of Government Efficiency (D.O.G.E.), aims to expose waste and abuse within the SEC. This move could unintentionally harm the US crypto industry, despite the commission's recent shift toward a more crypto-friendly stance under new leadership.

The SEC has been reducing enforcement actions, dropping lawsuits, consulting the industry for guidelines, and considering ETFs. Musk's actions could thus threaten a valuable ally. Hester Peirce, a leading advocate for crypto, emphasizes the SEC's critical role and highlights the potential loss of a supportive body if it's undermined.

While some in the crypto industry like Coinbase's CLO Paul Grewal see potential benefits in holding the SEC accountable for failed enforcement actions, others worry about the implications of disrupting an organization now seen as aligning more closely with the crypto community.