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Doge could make funds vulnerable to front-running, Democrats warn

House Democrats urge Securities and Exchange Commission to safeguard agency’s data

House Democrats have urged Securities and Exchange Commission acting chair Mark Uyeda to “safeguard” the agency’s data and work from the Department of Government Efficiency, or Doge.

The SEC’s vast trove of data from market participants helps ensure market integrity and prevent fraud, the lawmakers noted. “Improper access to this sensitive information could have disastrous consequences for the stable functioning of the US capital markets,” they wrote in a letter to Uyeda.

House financial services ranking member Maxine Waters and subcommittee on capital markets ranking member Brad Sherman, both Democrats from California, warned in the letter that Doge, an initiative created by President Donald Trump to slash costs and reduce the number of government employees, and its head Elon Musk, could use data from the agency to front-run investment decisions made by mutual funds, money market funds and exchange traded funds.

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