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Elizabeth Warren targets Elon Musk and White House crypto czar David Sacks with new ethics reform bill

April 15, 2025
in Regulations
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Elizabeth Warren targets Elon Musk and White House crypto czar David Sacks with new ethics reform bill
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A coalition of US lawmakers led by Senator Elizabeth Warren has introduced a new ethics reform bill targeting Special Government Employees (SGEs) like Elon Musk and White House crypto advisor David Sacks.

The proposal, titled the Special Government Employee Ethics Enforcement and Reform (SEER) Act, seeks to apply stricter transparency and accountability standards to individuals serving in advisory roles while maintaining private sector ties.

SGEs are part-time federal workers allowed to serve up to 130 days a year. Unlike full-time officials, they are not always required to disclose their financial interests unless they surpass a specific pay grade.

This structure has raised concerns about conflicts of interest, especially in cases involving high-profile figures like Elon Musk, who serves in advisory capacities while holding leadership roles in private companies with federal contracts.

Senator Warren argued that individuals like Musk, who benefit from major government deals, should not be allowed to operate in such ethical gray zones. According to her, Musk earns millions from government contracts yet avoids the disclosure requirements expected of senior officials.

The SEER Act has received support from a broad coalition of advocacy and watchdog groups. These include Public Citizen, Citizens for Responsibility and Ethics in Washington (CREW), the Project On Government Oversight (POGO), State Democracy Defenders, Campaign Legal Center, the American Federation of Government Employees (AFGE), and the National Treasury Employees Union (NTEU).

SEER’s key provisions

The SEER Act would expand existing ethics rules to cover SGEs starting from their 61st day in office. After 130 days, SGEs would be prohibited from receiving outside compensation related to their non-government roles.

The bill also introduces stricter conflict-of-interest rules. SGEs who lead companies with federal contracts or monopolistic power would be barred from engaging with agencies that regulate or contract with those companies.

Meanwhile, the legislation requires the Office of Government Ethics to approve all conflict-of-interest waivers for SGEs to increase public oversight. It also mandates public access to these waivers and financial disclosures.

Additionally, the Office of Personnel Management would create a public database listing all SGEs, including the number of days served and the reason for their classification.

If passed, the SEER Act would raise the ethical bar for part-time government advisors and limit the influence of corporate leaders in shaping federal policy behind closed doors.

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