Elon Musk hits back at Elizabeth Warren amid allegations of conflict of interest in Trump administration
- Elon Musk accuses Warren of acting in favor of SBF's parents.
- Criticism points to possible conflicts of interest in DOGE.
- Trump defends Musk and emphasizes ethics in transition team.
Elon Musk has returned to the center of a political controversy as he responded to concerns raised by Senator Elizabeth Warren about possible conflicts of interest involving his participation in the newly created Department of Government Efficiency (DOGE). The criticism came after the billionaire was named co-leader of the initiative, which promises to reduce government spending.
Lmao.
The person actually writing these things from Pocahontas are SBF's parents btw. https://t.co/V741yhitwp
- Elon Musk (@elonmusk) December 17, 2024
In a letter addressed to President-elect Donald Trump, Warren highlighted that Musk, in addition to being CEO of Tesla and SpaceX, has deep financial and business ties with the United States government, through billion-dollar contracts and federal subsidy programs. For her, such connections put the businessman's impartiality in his performance in public administration at risk.
The senator questioned the lack of strict ethics regulations that could prevent Musk from influencing policies that directly benefit his companies. In an excerpt from the letter, Warren said: “Mr. Musk’s substantial private interests pose a major conflict of interest with the role he has assumed as your ‘unofficial co-chair.’”
Elon Musk, however, reacted directly on his social platform, X (formerly Twitter), accusing Warren of acting under the influence of the parents of Sam Bankman-Fried (SBF), founder of the FTX exchange. “The ones who are really writing these things for Pocahontas are SBF’s parents,” Musk posted, using the controversial nickname already used by Donald Trump’s allies to refer to the senator.
Warren’s accusations reflect broader concerns about Musk’s potential to influence billions in government contracts and regulations that could directly affect his companies, including Tesla and SpaceX. In addition, companies like Starlink and Neuralink, also led by Musk, face pending regulatory lawsuits in the U.S.
The senator also highlighted that Musk holds a privileged position in the transitional government without being officially a public servant, which exempts him from ethical obligations that other members of the team must comply with. Warren argued that stricter rules should be implemented to avoid risks of corruption and protect the public interest.
Despite the criticism, Trump remained steadfast in his support for Musk, describing him as a visionary who puts national interests above any financial gain. “He considers this project to be the most important of his career,” Trump said in an interview with Time magazine.
Elon Musk, in turn, reiterated that his role in DOGE is essential to combat inflation and eliminate unnecessary government spending. According to him, the focus of the initiative is to ensure economic stability, an objective in line with Donald Trump's campaign promises.
Meanwhile, the Republican transition team has released an ethics pledge that requires all members to avoid real or perceived conflicts of interest. However, critics question whether the scope of those rules would be sufficient to oversee someone with Musk’s complex interests.
Musk’s ties to the Trump administration are nothing new. During the presidential campaign, the billionaire played an active role, from funding events to promoting initiatives to increase voter turnout. His business interests are also directly connected to Trump administration priorities, such as advancing NASA’s space programs and expanding electric vehicle infrastructure in the U.S.
Additionally, the SEC's ongoing investigations into Musk's acquisition of Twitter and regulatory issues involving his other companies add a layer of complexity to Warren's criticisms.
Karoline Leavitt, a spokeswoman for the transition team, responded to the allegations, calling them “political theater” and noting that Musk’s work is essential to government efficiency. She said the senator’s criticisms were unfounded and reflected “the limited contribution of a career politician compared to Elon Musk.”
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Why TradFi firms could turn to bitcoin margin loans: Maple CEO
Maple’s Sid Powell said that TradFi firms have been in contact with the firm about lending and borrowing in crypto
The Daily: ECB President Lagarde rejects bitcoin for Eurozone reserves while the Czech central bank considers it and more
European Central Bank President Christine Lagarde said bitcoin is not an option as a reserve asset for the Eurozone’s central bank reserves, citing liquidity, security and regulatory concerns.Meanwhile, the Czech National Bank approved a proposal from Governor Aleš Michl to assess diversifying some of its country’s reserves into bitcoin.
'Inevitable collapse': Trump’s crypto push sparks concern at Paul Singer's Elliott Management: FT
The hedge fund said in a new investor letter that the “inevitable collapse” of the crypto bubble “could wreak havoc,” according to the Financial Times.Elliott’s Paul Singer has never been a fan of crypto, telling WSJ in 2023 that cryptocurrencies are “completely lacking in any value.”
Kiyosaki Dumps Gold and Silver, Projects Bitcoin at $250K by 2025