#U.S. Securities and Exchange Commission

[news4fact]

SEC sues Elon Musk over delayed disclosure of Twitter stake

NEW YORK: The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against Elon Musk, alleging he failed to timely disclose his acquisition of a significant stake in Twitter, now known as X. The SEC claims Musk’s delayed disclosure allowed him to purchase additional shares at artificially low prices, potentially saving $150 million. Under U.S. securities law, investors must disclose…

[dencyemily]

Landmark Decision: Court Gives Green Light to Genesis for $1.3 Billion GBTC Liquidation to Resolve Investor Debts

In a crucial development, Genesis Global Holdco has received court approval to initiate the phased liquidation of its $1.3 billion Grayscale Bitcoin Trust (GBTC) shares. The approval, granted during a February 14 hearing at the United States District Court for the Southern District of New York, underscores Genesis's commitment to its repayment plan for investors.

The sanctioned liquidation encompasses approximately 35 million GBTC shares, alongside 11 million shares from Grayscale Ethereum Trust (ETHE) and Grayscale Ethereum Classic Trust (ETCG). This move follows the SEC's approval on January 10 for the conversion of GBTC into a spot Bitcoin exchange-traded fund (ETF), a significant development in Genesis's strategy for cash redemption.

Genesis's legal and financial maneuvers, including a $21 million settlement with the SEC over allegations related to the Gemini Earn program, have set the stage for this court-approved liquidation. The decision allows Genesis to collaborate with a brokerage for a phased liquidation approach, ensuring a controlled divestment of assets.

Despite a legal battle with Gemini over the GBTC shares, the court's approval provides Genesis with the green light to proceed with its asset liquidation plan. This development has sparked interest within the cryptocurrency community, with stakeholders closely watching for potential market implications amid ongoing changes in the GBTC landscape.

[cryptonewsupdate]

Defiance Against SEC: Terraform CEO Contests Regulatory Authority in Charging Do Kwon and Company

In a strategic maneuver to weather ongoing legal storms, Terraform Labs, the masterminds behind TerraUSD (UST) and Luna, have opted for a Chapter 11 bankruptcy filing in Delaware. The move is positioned as a calculated response to legal challenges, prominently the SEC lawsuit and other legal complexities in Singapore. CEO Chris Amani underscores the pivotal role of this bankruptcy filing in steering the company through its objectives in the face of intricate legal landscapes.

The bankruptcy documents lay bare Terraform Labs' financial landscape, indicating assets and liabilities within the $100 million to $500 million range, with 100 to 199 creditors in the mix. Beyond financial restructuring, the Chapter 11 filing strategically positions Terraform Labs in its legal strategy. Typically, an appeal against the SEC would necessitate a "supersedeas bond," an amount equivalent to 110% of the total judgment, yet Chapter 11 protection might exempt the company from this requirement.

The upcoming appeal centers on Terraform Labs' argument that the SEC lacks jurisdiction to charge the company or co-founder Do Kwon, contending that their crypto assets are beyond the realm of securities. A favorable outcome could significantly alleviate the company's primary claim, bringing relief to Terraform Labs, its creditors, and the broader community.

Despite the challenges posed by bankruptcy, Terraform Labs remains resolute in its pursuit of growth within the Web3 sector. Recent strategic moves, such as the acquisition of Pulsar Finance and the launch of Station v3, a new cryptocurrency wallet, demonstrate the company's commitment to navigating complexities and forging ahead.

The postponement of the SEC's civil trial to March 25 has offered some respite. However, the custody situation of Do Kwon in Montenegro, with potential extradition looming, adds a layer of complexity. Kwon's arrest, stemming from the collapse of TerraUSD and Luna, contributed to significant disruptions in the cryptocurrency market.

Established in 2018, Terraform Labs faced a severe downturn in May 2022, witnessing a substantial loss of over $40 billion in market value. This downturn triggered the collapse of TerraUSD and Luna, escalating the company's legal battles. A recent U.S. court ruling further complicates matters by classifying LUNA and MIR as securities, intensifying Terraform Labs' legal challenges.

[eightopals]

Hi, the SEC is the U.S. Securities and Exchange Commission, a federal regulatory agency. The SEC’s mission is to regulate the U.S. stock markets and the companies that make money by selling stock on those markets. As a regulator, the SEC investigates companies that may have violated U.S. securities regulations. The SEC employees mentioned are therefore federal employees, and the phones in question may well be the phones the agency issues to employees for official agency business.

I’m not sure exactly what ax Levine is trying to grind here, but he used to work for Goldman Sachs:

The SEC v. Goldman Sachs: Reputation, Trust, and Fiduciary Duties in Investment Banking

https://lawcat.berkeley.edu/record/1125250

Always consider the source.

The researchers “use de-identified smartphone geolocation data for a sample of US phones from January 2019 to February 2020,” obtained “from an online data vendor that provides data commercially to businesses, governments, and researchers” and “works with numerous mobile application providers that track ‘pings’ of the location of a phone while the application is either currently in use or is running in the background.” Then they use the addresses of SEC offices and corporate headquarters, and then match the smartphone pings to the buildings. A smartphone is assumed to belong to an SEC employee if it “pinged for at least 20 unique workday hours within one SEC location during the month” and “the accumulated time in that SEC building [is] greater than in any other buildings in the respective month.” And then they go measure which companies those SEC employees visited.

Matt Levine casually mentioning this in an aside like it's normal

[dromologue]

Thailand-based asset management funds can now launch private funds for investing in U.S. spot bitcoin exchange-traded funds (ETFs), according to the country’s securities regulator. The approval of bitcoin ETFs by U.S. regulators has opened opportunities for Thai asset management firms to gain exposure to the premier crypto asset. Only Institutional Investors and Ultra-High-Net-Worth Individuals Are […]

[finance-scam]

SAP Hits with Over $220 Million in U.S. Bribery Settlement

SAP SE, the German software leader, has agreed to pay more than $220 million to resolve U.S. investigations into overseas bribery involving multiple governments, announced by the U.S. Department of Justice (DOJ) and the Securities and Exchange Commission (SEC).

What Happened?

From 2013 to 2018, SAP reportedly paid bribes and offered other benefits to officials in South Africa and Indonesia—including cash, political contributions, electronic transfers, and luxury gifts—to win government contracts and services  .

The SEC also cited similar corrupt schemes in Malawi, Kenya, Tanzania, Ghana, and Azerbaijan, where intermediaries allegedly paid officials to secure deals, often recorded falsely as legitimate business expenses  .

Legal Resolution & Payments

SAP entered into a three-year Deferred Prosecution Agreement (DPA) with the DOJ, admitting to conspiracy charges under the Foreign Corrupt Practices Act (FCPA).

The company will pay:

$118.8 million as a criminal penalty

$103.4 million in forfeiture of illicit proceeds

$85 million in SEC disgorgement plus ~$13 million in prejudgment interest (partially creditable against SAP’s South Africa payout)  .

Cooperation and Compliance Reform

Despite not proactively disclosing the misconduct, SAP received a 40% reduction in its criminal penalty due to cooperation and thorough remediation efforts.

SAP undertook internal reforms: eliminated its third-party commission model, enhanced compliance oversight, increased ethical training, upgraded payment controls, disciplined implicated employees, and expanded use of data analytics  .

U.S. authorities recognized SAP’s willingness to assist investigations across languages, jurisdictions, and complex regulatory environments  .

Why This Matters

This case marks one of the largest-ever corporate settlements by DOJ and SEC over foreign bribery, affecting seven countries and multiple state-owned entities.

It highlights the necessity of stringent oversight of third-party intermediaries and strong internal controls—even in global, large enterprises.

SAP’s reforms set a benchmark for how multinational firms can remediate misconduct and cooperate with regulators to gain more favorable enforcement treatment.

[saywhat-politics]

As Tesla stock has fallen in recent weeks, members of the board and an executive at Elon Musk's company have been selling off millions of dollars in stock, according to filings with the U.S. Securities and Exchange Commission.

NOTE: The video is from a previous report.

Together, four top officers at the company have offloaded over $100 million in shares since early February.

Last week, longtime Musk ally James Murdoch -- the estranged son of Fox boss Rupert Murdoch and a board member since 2017 -- became the latest to do so, exercising a stock option and selling shares worth approximately $13 million, according to an SEC filing. The sale took place on March 10, coinciding with the stock's largest single-day decline in five years.

Elon Musk's brother, Kimbal Musk, who also sits on the board, unloaded 75,000 shares worth approximately $27 million last month, according to a filing.

The chairman of the board, Robyn Denholm, has offloaded more than $75 million dollars worth of shares in two transactions in the past five weeks, federal filings show. The selloffs made by Denholm came as part of a predetermined sales plan.

[ai-art-thieves]

did some research regarding the CNC Intelligence thing and found this Reddit post that shows that this scam goes beyond Tumblr apparently: https://www.reddit.com/r/CryptoScams/s/bNLbZPfCP4

Y I K E S

luckily, the reddit page you posted has a lot of good resources that people should definitely check out at some point.

I'll copy-paste the links here too for ease of access

Report a URL to Google:

To report a phishing URL to Google: Report Phishing Page

To report a malware URL to Google: Report malicious software

To report a Report spammy, deceptive, or low quality webpage to Google.

Where to file a complaint:

Internet Crime Complaint Center IC3 - File a Cyber Scam complaint with the IC3

Contact your local FBI field office ASAP - https://www.fbi.gov/contact-us/field-offices

the FTC at http://www.reportfraud.ftc.gov/

the Financial Crimes Enforcement Network (FinCEN) at https://www.fincen.gov/msb-state-selector

the Commodity Futures Trading Commission (CFTC) at https://www.cftc.gov/complaint

the U.S. Securities and Exchange Commission (SEC) at https://www.sec.gov/tcr

if you are located in Europe at https://www.europol.europa.eu/report-a-crime/report-cybercrime-online

the cryptocurrency exchange company you used to send the money (if applicable)

if you are located in California, with DFPI at https://dfpi.ca.gov/file-a-complaint/

if the website is hosted on AWS infra --> AWS report abuse form

How to find out more about the scammer domain:

https://whois.domaintools.com/google.com - Replace the google.com URL with the scam website url. The results will tell you how long the domain has been around. If the domain has only been registered for a few days/weeks/months, it's usually a good indicator that its a scam.

Misc. Resources

https://dfpi.ca.gov/crypto-scams/ - The scams in this tracker are based on consumer complaints in California. They represent descriptions of losses incurred in transactions that complainants have identified as part of a fraudulent or deceptive operation.

[blueiscoool]

Miniature Roman Gold Box Lock From 3rd Century Discovered in Germany

Archaeologists have uncovered a miniature Roman gold lock, measuring just 1.2 by 1.1 centimeters—smaller than a U.S. quarter coin—in a field in Petershagen-Frille in northwestern Germany. The object, dating back to the 3rd or 4th century AD, is believed to be the smallest Roman lock ever found in Europe.

The discovery, made in 2023 by licensed explorer Constantin Fried, has drawn significant attention due to the lock’s size, material, and intricate craftsmanship.

Fried, who found the piece in a cultivated field in the Minden-Lübbecke district, immediately reported it to Bielefeld’s Regional Association of Westphalia-Lippe’s (LWL) archaeology team. Experts were stunned.

“I could hardly believe it myself when I held the find in my hand,” Fried said. “Because such Roman locks are usually much larger and consist of iron or bronze parts.”

A lock of mystery and history

Archaeologists believe the lock was originally used to secure a small chest or valuable container. Dr. Barbara Rüschoff-Parzinger, a cultural expert and archaeologist at LWL, confirmed that its design matches cylindrical Roman locks. The craftsmanship suggests it was made in a specialized Roman workshop.

Despite missing its original key and chain, the lock remains in remarkable condition. It consists of two small cylindrical plates held together by three gold rivets. Experts say its decorative details indicate it was likely owned by someone of high status.

Researchers are investigating how the lock arrived in Westphalia. Early theories suggest it could have been traded, taken as war loot, or brought back by a soldier returning from service in the Roman army.

Dr. Michael Rind, head of archaeology at LWL, said the lock would have been considered rare and valuable in its time, even if it was no longer functional. “The golden miniature tin lock is the only one of its kind in Europe and is the northernmost tin lock found in Germany,” Rind said.

Advanced technology unveils internal design

To study the lock’s inner workings, researchers turned to modern imaging techniques. Traditional X-rays failed to reveal details due to the density of the gold.

Instead, experts used neutron computed tomography, a rare technique in archaeology, to create a detailed visualization of the internal mechanism.

The scan revealed key structural components, including a spring frame, latch, and base plate. Further analysis showed that the lock had been tampered with, possibly in an attempt to force it open.

Despite the damage, researchers reconstructed its mechanism and created a functional replica four times its original size. The model, crafted by an LWL restorer, demonstrates how the lock once operated and confirms the technical complexity of its design.

A glimpse into Roman influence

The discovery of this lock offers a rare glimpse into Roman craftsmanship and its influence on distant regions. Researchers say it serves as evidence of cultural and economic exchanges between Roman elites and Germanic tribes.

While the lock answers some historical questions, others remain open. Was it a unique commissioned piece? Were similar locks produced? Could more be buried beneath the fields of Westphalia?

Archaeologists continue their investigation, hoping to uncover more about this tiny yet significant piece of history.

By Nisha Zahid.

The 4:1 scale reconstruction of the lock with chain 

[political-us]

US Securities and Exchange Commission beginning to bring on DOGE staff, email says

WASHINGTON, March 28 (Reuters) - The U.S. Securities and Exchange Commission is beginning to bring on officials with billionaire Elon Musk's Department of Government Efficiency, according to an email sent on Friday to department staff.

SEC staff were informed that the DOGE task force had contacted the regulator, and that they would be treated as staff for the purposes of network, system and data access. The SEC is establishing a liaison team with the "intent to partner" with DOGE, the email said. The memo was first reported by Reuters.

(The U.S. Securities and Exchange Commission is an independent agency of the United States federal government, created in the aftermath of the Wall Street crash of 1929. Its primary purpose is to enforce laws against market manipulation.)

https://www.reuters.com/world/us/us-securities-exchange-commission-beginning-onboard-doge-staff-email-says-2025-03-28/

[fuckyeahmarxismleninism]

#BreakingNews | The Government of the Bolivarian Republic of Venezuela announces with satisfaction the release of 252 Venezuelan citizens who were kidnapped and subjected to forced disappearance in a concentration camp, known as CECOT, in the Republic of El Salvador.

The government of the Bolivarian Republic of Venezuela announces with satisfaction that it has achieved the liberation of 252 Venezuelan citizens who had been kidnapped and subjected to forced disappearance in a concentration camp, known as the cecot, in the Republic of El Salvador.

Venezuela has paid a high price to obtain the freedom of these nationals, through an exchange with the authorities of the United States of America of a group of U.S. citizens who were under arrest for their proven participation in serious crimes against the peace, independence, and security of the nation.

The president of the republic, nicolás maduro moros, always willing to take care of the life and integrity of these Venezuelans subjected to serious human rights violations, had no hesitation in making this exchange and thus rescuing these Venezuelan migrants kidnapped in El Salvador by the most extremist sectors of the Venezuelan right wing.

Likewise, the government of the bolivarian republic of venezuela informs that the competent bodies of the justice system have granted alternative measures to the deprivation of liberty to a group of venezuelan citizens who were detained in the framework of criminal proceedings against them for their participation in the commission of common crimes and crimes against the constitutional order, provided for and sanctioned in the national legal system.

The Bolivarian government once again thanks former President Jose Luis Rodriguez Zapatero for his courageous efforts to promote political dialogue, peace, and reconciliation in Venezuela.

Finally, the government of the Bolivarian Republic of Venezuela reaffirms its commitment to continue working tirelessly on other issues for the benefit of the Venezuelan people, with absolute respect for the Constitution.

Caracas, July 18, 2025

[news4fact]

US securities regulator drops lawsuit against Coinbase, exchange confirms

NEW YORK: The US securities regulator has withdrawn its lawsuit against Coinbase, the cryptocurrency exchange announced on Friday, bringing an end to a high-profile legal battle that once threatened the platform’s future and the wider crypto industry. Since President Donald Trump took office, the Securities and Exchange Commission (SEC) has taken a different approach to regulating…

[dencyemily]

Ripple Seeks Extension for SEC Case Financial Disclosure Deadline

In the aftermath of a court ruling that swung in favor of the U.S. Securities and Exchange Commission (SEC), Ripple strategically seeks an extension until February 20, 2024, to navigate the demands for additional financial disclosures. U.S. District Judge Analisa Torres and Judge Sarah Netburn issued a mandate, compelling Ripple to reveal financial records for 2022-2023 and details on "post-compliant institutioncal sales" of XRP. Ripple's initial resistance, deeming the demand "unnecessary" and "untimely," sheds light on the intricacies of the ongoing legal saga.

On February 6, Ripple submitted a court request to Judge Torres, proposing a delay in the deadline from February 12 to February 20, 2024. The rationale presented by Ripple revolves around the pragmatic challenges of producing a comprehensive set of documents spanning the entire post-complaint period. Interestingly, the SEC has concurred with this extension, showcasing a temporary alignment of interests in this legal tug of war.

This development amplifies the broader regulatory discourse, questioning the classification of digital currencies, with Ripple at the forefront of these deliberations. As Ripple maneuvers strategically to comply with the SEC's demands, the cryptocurrency industry observes with keen interest, cognizant of the potential implications on regulatory dynamics and the overarching categorization of cryptocurrencies.

[cryptonewsupdate]

Forward-Looking Perspective: Standard Chartered Anticipates a Positive Trajectory for ETH, Highlighting the Potential SEC Approval for ETFs

Standard Chartered's projection of a promising Ethereum future takes center stage with the anticipation of a spot Ethereum Exchange-Traded Fund (ETF) approval by the SEC in May. Envisioning a potential surge to $4,000, the bank's forecast underscores Ethereum's resilience and growing significance in the digital asset landscape.

In the wake of the SEC's approval of Bitcoin ETFs, Geoffrey Kendrick, Standard Chartered's Head of Crypto Research, draws parallels between Bitcoin and Ethereum. Kendrick suggests that Ethereum's legal and financial parallels with Bitcoin position it favorably for ETF approval, despite lingering uncertainties over its SEC classification.

The delay in the SEC's decision on Ethereum ETF proposals adds an element of suspense to the unfolding narrative. SEC Chairman Gary Gensler's ambiguous stance on Ethereum's classification introduces an element of unpredictability, adding to the market's anticipation and speculation.

Beyond Ethereum's potential price surge, Standard Chartered also projects a substantial rise in Bitcoin's value, predicting it to reach $200,000 by 2025. The bank maintains a bullish stance on Bitcoin's growth, reflecting a broader confidence in the cryptocurrency market.

As the Ethereum market showcases resilience and growth, evidenced by Glassnode data, investor interest is reignited. The approval of Ethereum ETFs is seen as a catalyst, with prominent firms like BlackRock proposing their own, signaling a potential influx of institutional interest that could fortify the Ethereum ecosystem.

The Ethereum Spot ETF hype, as highlighted by blockchain figure Michaël van de Poppe, plays a pivotal role in revitalizing market interest. The resurgence in confidence, coupled with the prospect of ETF approval, paints a compelling picture of Ethereum's journey towards mainstream acceptance and recognition.

[raygun631]

Brian Walsby

oretsdSopn:3h0011587g c9hM633A26u9rt2M31ci h8 46hi7laia9t1 4  · 

Everyone is fatigued. I was talking online with a Canadian last night who asked me why no one was doing anything and I didn’t have an answer. You wonder why both parties don’t work together to get rid of these two assholes, one of which no one here voted for. You wonder how these people can be so spineless and cowardly.

This might provide some answers.

Stay Silent and Stay Powerless Against Trump’s Tyranny

by Ralph Nader

March 14, 2025

There are reasons why influential or knowledgeable Americans are staying silent as the worsening fascist dictatorship of the Trumpsters and Musketeers gets more entrenched by the day. Most of these reasons are simple cover for cowardice.

Start with the once-powerful Bush family dynasty. They despise Trump as he does them. Rich and comfortable George W. Bush is very proud of his Administration’s funding of AIDS medicines saving lives in Africa and elsewhere. Trump, driven by vengeance and megalomania, moved immediately to dismantle this program. Immediate harm commenced to millions of victims in Africa and elsewhere who are reliant on this U.S. assistance (including programs to lessen the health toll on people afflicted by tuberculosis and malaria).

Not a peep from George W. Bush, preoccupied with his landscape painting and perhaps occasional pangs of guilt from his butchery in Iraq. His signal program is going down in flames and he keeps his mouth shut, as he has largely done since the upstart loudmouth Trump ended the Bush family’s power over the Republican Party.

Then there are the Clintons and Obama. They are very rich, and have no political aspirations. Yet, though horrified by what they see Trump doing to the government and its domestic social safety net services they once ruled, mum’s the word.

What are these politicians afraid of as they watch the overthrow of our government and the oncoming police state? Trump, after all, was not elected to become a dictator—declaring war on the American people with his firings and smashing of critical “people’s programs” that benefit liberals and conservatives, red state and blue state residents alike.

Do they fear being discomforted by Trump/Musk unleashing hate and threats against them, and getting tarred by Trump’s tirades and violent incitations? No excuses. Regard for our country must take precedence to help galvanize their own constituencies to resist tyranny and fight for Democracy.

What about Kamala Harris — the hapless loser to Trump in November’s presidential election? She must think she has something to say on behalf of the 75 million people who voted for her or against Trump. Silence! She is perfect bait for Trump’s intimidation tactics. She is afraid to tangle with Trump despite his declining polls, rising inflation, the falling stock market and anti-people budget slashing which is harming her supporters and Trump voters’ economic wellbeing, health and safety.

This phenomenon of going dark is widespread. Regulators and prosecutors who were either fired or quit in advance have not risen to defend their own agencies and departments, if only to elevate the morale of those civil servants remaining behind and under siege.

Why aren’t we hearing from Gary Gensler, former head of the U.S. Securities and Exchange Commission (SEC), now being dismantled, especially since the SEC is dropping his cases against alleged cryptocurrency crooks?

Why aren’t we hearing much more (she wrote one op-ed) from Samantha Power, the former head of the U.S. Agency for International Development (USAID) under Biden, whose life-saving agency is literally being illegally closed down, but for pending court challenges?

Why aren’t we hearing from Michael Regan, head of the U.S. Environmental Protection Agency (EPA), under Biden about saboteur Lee Zeldin, Trump’s head of EPA, who is now giving green lights to lethal polluters and other environmental destructions?

These and many other former government officials all have their own circles – in some cases, millions of people – who need to hear from them.

They can take some courage of the seven former I.R.S. Commissioners — from Republican and Democratic Administrations — who condemned slicing the I.R.S staff in half and aiding and abetting big time tax evasion by the undertaxed super-rich and giant corporations. I am told that they would be eager to testify, should the Democrats in Congress have the energy to hold unofficial hearings as ranking members of the Senate Finance and House Ways and Means Committees.

Banding together is one way of reducing the fear factor. After Trump purged the career military at the Pentagon to put his own “yes men” at the top, five former Secretaries of Defense, who served under both Democratic and Republican presidents, sent a letter to Congress denouncing Trump’s firing of senior military officers and requesting “immediate” House and Senate hearings to “assess the national security implications of Mr. Trump’s dismissals.” Not a chance by the GOP majority there. But they could ask the Democrats to hold UNOFFICIAL HEARINGS as ranking members of the Armed Services Committees!

Illinois Governor JB Pritzker can be one of the prime witnesses at these hearings – he has no fear of speaking his mind against the Trumpsters.

On March 6, 2025, the Washington Bureau Chief of the New York Times, Elisabeth Bumiller, put her rare byline on an urgent report titled, “‘People Are Going Silent’: Fearing Retribution, Trump Critics Muzzle Themselves.”

She writes: “The silence grows louder every day. Fired federal workers who are worried about losing their homes ask not to be quoted by name. University presidents [one exception is Wesleyan University President Michael Roth] fearing that millions of dollars in federal funding could disappear are holding their fire. Chief executives alarmed by tariffs that could hurt their businesses are on mute.”

To be sure, government employees and other unions are speaking out and suing in federal court. So are national citizen groups like Public Citizen and the Center for Constitutional Rights, though hampered in alerting large audiences by newspapers like the Times rarely reporting their initiatives.

Yes, Ms. Bumiller, pay attention to that aspect of your responsibility. Moreover, the Times’ editorial page (op-ed and editorials) are not adequately reflecting the urgency of her reporting. Nor are her reporters covering the informed outspokenness and actions of civic organizations.

Don’t self-censoring people know that they are helping the Trumpian dread, threat and fear machine get worse? Study Germany and Italy in the nineteen thirties.

The Trump/Musk lawless, cruel, arrogant, dictatorial regime is in our White House. Their police state infrastructure is in place. Silence is complicity!

https://nader.org/.../stay-silent-and-stay-powerless.../

[mariacallous]

In this first year of his second term, President Donald Trump has claimed broad powers to unilaterally restructure much of how the U.S. government functions. Some of these assertions have gone completely unchallenged. Others have been litigated, and although lower courts have been skeptical of many of these efforts, the Supreme Court has been more approving. Trump has taken as much advantage of his new powers as he plausibly can, prosecuting his political enemies, firing independent agency heads, and dismantling federal agencies almost at a whim.

One salient question now is: When and if the Democrats return to power, how much of Trump’s damage can they undo? Let’s assume, for the moment, that the Supreme Court acts in good faith—that its views on presidential power are without partisan favor, and that it doesn’t arbitrarily invent carve-outs to rein in a Democratic president. What then?

Even with such (unlikely) parameters, the outcomes of this thought experiment suggest few opportunities for a Democratic president to make positive use of these novel presidential powers. Most of the powers that Trump asserts are either preclusive (preventing something from happening) or negating (ending something that is already in process). Few of them are positive powers, allowing the creation of something new, and even those are not permanent—the next Republican president could likely reverse most Democratic initiatives, sending the country into a retaliatory spiral.

Consider, as a first point of examination, the president’s newly established power to restructure the federal workforce, as in the layoffs of more than 1,300 State Department employees, the dismissal of inspectors general, and the firing of independent agency members. Most recently, the Supreme Court authorized Trump to continue with his plan to dismantle the Department of Education, despite a statute mandating its creation.

A future Democratic president, if so inclined, could seek to use that same authority to reverse some of what Trump has done. He could, for example, remove all of the Trump-appointed commissioners from the formerly independent agencies (such as the Securities and Exchange Commission and the National Labor Relations Board) and replace them with Democratic appointees whose views are more consistent with the president’s.

This new president could also attempt to reconstitute institutions that have been decimated, such as Voice of America, and restore the many State Department bureaus and functions that have been terminated. He could, presumably, re-create the Department of Education and restore the workforce at the National Oceanic and Atmospheric Administration and NASA.

Even if attempted restorations are legal, however, they may not succeed in practice. Firing experts is much easier than hiring them. And given the uncertainties that Trump has created, our best and brightest might not willingly take positions in the federal government. Who wants a job that might last only four years?

Meanwhile, across the government, a Democratic president could fire all of the employees who were hired by Trump and agreed to his loyalty requirements. The president could also use the same authority to significantly diminish the workforce at agencies whose functions he is less warm to. Many of the soon-to-be-hired ICE employees, for instance, might find themselves subject to a reduction in force under a new Democratic administration.

To be sure, the Supreme Court, as it is currently constituted, might find a rationale to block the dismantling of the TSA or the Department of Homeland Security. But very few functions at DHS are statutorily mandated at the current level of activity, and there is no legal distinction between presidential authority over DHS and, say, the Department of Education.

Likewise, a Democratic president could reinstate funding to several grant-making agencies that Trump has defunded. He could restore international-aid funding to USAID and authorize the Institute of Museum and Library Sciences to resume distributing grants to American recipients. All of the National Science Foundation and National Institutes of Health funding that has been pulled from basic research at major universities could be restored. Again, however, this is easier said than done—interrupted funding has likely permanently terminated some scientific inquiry and driven U.S.-based scientists overseas. International-aid programs that were suspended will be hard to rebuild.

Some recent policy changes are more readily reversible. Transgender soldiers could be welcomed back into the military, for example. Forts can be renamed, and the U.S. can rejoin international organizations. Here, too, the harmful effects can be mitigated, but the prospect of a return of Trumpism down the line will resonate for a long time in terms of substantial losses of expertise, stability, and trust.

Trump has also been aggressive in using federal funding as a means of encouraging his policy priorities in the private sector. Even when his efforts are resisted by the courts (such as his attempt to defund Harvard), his threats to federal funding have caused other institutions, such as the University of Pennsylvania, to change their policies or, in the case of the University of Virginia, dismiss their leaders. The same is true of his assault on big law firms; although his efforts have been legally stymied, their impact on major firms has already been significant.

What could a Democratic president do with this power? Most obviously, the president could flip Trump’s agenda on its head—denying federal funding to universities that lack DEI policies, for example, or ousting from federal contracts any conservative law firms that have provided pro bono services to disfavored causes, or whose partners played significant roles in the Trump administration.

Perhaps most dangerous, a Democrat could reverse the changes at the Department of Justice, not in an effort to make it apolitical but in the hopes of serving friends on the left and punishing the Trump-affiliated right. The president could dismiss any pending cases against allies (as Attorney General Pam Bondi recently did for a Utah doctor who issued fake COVID-vaccination cards) and use their power to punish opponents—White House Deputy Chief of Staff Stephen Miller, the former Trump adviser Steve Bannon, and others could face the expense of criminal investigation. Conservative states such as Alabama and Texas could be investigated for civil-rights violations. Likewise, corporate officials who have caved to Trump, such as Shari Redstone of Paramount, have already been suggested as investigative targets. And the president could unilaterally issue subpoenas to almost any conservative-supporting institution—say, political consultants for evangelical-church organizations. A president could, perhaps, even attempt to end the nonprofit status of all religious organizations—though one suspects that this Supreme Court would not permit that step on religious-liberty grounds.

One of the most significant assertions of presidential power Trump has made is that he can nullify a law—that is, that he can dispense with enforcing it based on his authority as chief executive. The prime example of this is his refusal to enforce the congressionally mandated ban on TikTok on the specious ground that he has national-security power to do so. Under this theory, almost any regulatory requirement could be suspended for being inconsistent with national security. A future Democratic president might, for example, dispense with limits on labor-union organizing on the grounds that the workforce is essential to national competitiveness. Export or import licenses could be manipulated to fund military activities. Or, to parallel Trump as much as possible, penalties against favored European enterprises could be waived as part of “diplomatic negotiations,” and existing exemptions for disfavored nations could be ignored. The possibilities are almost as endless as a president’s imagination.

Ultimately, a Democratic president with the political will to use the levers of power left by Trump could at least partially restore the status quo ante and unilaterally impose certain changes as well—which a subsequent Republican president could then undo.

What lies ahead, then, is a new era of pendulum swings, replacing the stability of the postwar governing consensus. Ahead is a cycle of retributive prosecutions and whipsaw funding decisions. America may see entire Cabinet departments alternatively created and closed every four years while the presidency goes from policy to anti-policy—enforcing DEI in one administration, perhaps, and prohibiting it in the next. The country would, in effect, return to the time before the Pendleton Act, when the entire federal workforce turned over with each successive administration, rewarding cronyism at the expense of expertise.

But in this new power arrangement, the Trump-aligned presidents will have the advantage.

It takes only 20 minutes to dismiss 1,300 State Department employees; their expertise cannot be replaced in 20 years, much less a single presidential term. Other departments and agencies can never be fully restored. To cite a mundane example, in the first six months of Trump’s second term, the DOJ has lost two-thirds of the experienced attorneys in the Federal Programs branch (which defends the government in civil court). Many resigned rather than have to defend Trump’s initiatives. That level of destruction cannot be quickly fixed.

What Trump and the Supreme Court have created is a ratchet of destruction. They have discovered that knocking things down is far easier than building them. And because the overall conservative project is to reduce the size of government, the structural advantage of destruction over creation is ineradicable. Even the most effective possible responses from a Democratic president (such as scaling down ICE to a bare minimum) come with their own set of problems.

All of this might have been different had the Supreme Court stepped in to diminish or negate these new assertions of presidential power, but it has not. And so the pendulum will swing back and forth, but the long-term trend is toward an ever-diminishing federal government that does whatever a conservative Court will permit it to do. The prospect is not just sad—it is terrifying.