Trump Signs Executive Order Reining In "So-Called" Independent Agencies Such as SEC

Plus scammers sell fake FTX claims using "face-swapping video technology."

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Bruce Carton
February 19, 2025

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Zachary Hafer, former AUSA in the U.S. Attorneys’ Office for the District of Massachusetts, has joined Simpson Thacher & Bartlett as a partner in the firm’s Boston office. outpost.

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Trump Signs Order That Seeks White House Control Over Independent Agencies

President Trump signed an executive order that seeks to give his political appointees far-reaching control over government agencies that Congress established to operate with some independence of the White House, the latest in a series of challenges the president has levied against longstanding structures of the federal government.

The order is expected to affect a range of independent agencies, including the Federal Election Commission, the Federal Communications Commission, the Securities and Exchange Commission and the Federal Trade Commission. Those agencies typically are run by bipartisan panels whose members are nominated by the president and confirmed by the Senate for fixed terms, removable only for misconduct.

Tuesday’s order requires that independent agencies submit major regulations to the White House Office of Management and Budget for review. OMB is run by budget hawk Russell Vought, a Trump ally who contributed to the Project 2025 conservative policy blueprint.

by WSJ

👉 The February 18, 2025, executive order is here. It states that:

“… because all executive power is vested in the President, all agencies must: (1) submit draft regulations for White House review—with no carve-out for so-called independent agencies, except for the monetary policy functions of the Federal Reserve; and (2) consult with the White House on their priorities and strategic plans, and the White House will set their performance standards.

The Office of Management and Budget will adjust so-called independent agencies’ apportionments to ensure tax dollars are spent wisely.

The President and the Attorney General (subject to the President’s supervision and control) will interpret the law for the executive branch, instead of having separate agencies adopt conflicting interpretations.”

This Bloomberg article adds that “independent agencies have frequently followed directives from the White House, but their mandates don’t require them to do so. This order would change that requirement — and has the potential to draw legal challenges from the agencies.”

Firms Scammed for Millions in Faked FTX Claims Masked By AI Face: Inca Digital

At least two unnamed companies have been taken in by an alleged shapeshifting fraudster selling millions of dollars in fake FTX liquidation claims by apparently using artificial intelligence to help mask his appearance in video calls with buyers, according to an investigation conducted by data firm Inca Digital.

A thief (or thieves) is said to have made off with at least $5.6 million by posing as a person looking to sell his high-dollar FTX liquidation claims, which checked out as valid even though they were not ultimately connected to the person allegedly scamming buyers. The potential thief may have used face-swapping video technology in calls and also is said to have faked other credentials, said officials at Inca Digital that had been asked to lend help.  

by CoinDesk

Tesla’s law firm drafts Delaware bill that could salvage Musk pay package

A law firm that represents Tesla and Elon Musk has written proposed legislation that would alter Delaware corporate law, according to a person directly familiar with the drafting of the bill.

The proposed legislation, drafted by Richards, Layton & Finger, or RLF, would amend Delaware General Corporation Law, and if adopted, could pave the way for the reinstatement of Musk’s 2018 CEO pay package at Tesla, worth tens of billions of dollars in options. […]

“Delaware has taken some heat for supposedly being too hard on controller transactions,” said Renee Zaytsev, partner at Boies Schiller and co-chair of the firm’s securities and shareholder dispute practice.

“These amendments seem to be a course correction that would make it significantly easier for boards and controllers to avoid judicial scrutiny of their transactions,” she said.

by CNBC

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