DOGE's Tom Krause, the US Treasury's new Fiscal Assistant Secretary, is still the CEO of Cloud Software Group; critics say it may be a conflict of interest
“...bosses are simultaneously running private companies while also running parts of the government that affect their businesses.” — By @telliotter.bsky.social Tim Marchman / @timmarchman : GRINDSET/INSPIRING: Elon Musk's man at the Treasury, who oversees multitrillion dollar payment systems, still working second job as software CEO, per email to Treasury employees. This is from @telliotter.bsky.social Vittoria Elliott / @telliotter : New from me! Workers at the Treasury received an email confirming Tom Krause will officially be taking on the duties of the Fiscal Assistant Secretary. But he will still be keeping his job as CEO of Cloud Software Group. @wired.com — www.wired.com/story/musk-k... Leah Feiger / @leahfeiger : NEW: An email sent to workers at the US Treasury Department's Bureau of the Fiscal Service said DOGE's Tom Krause is “currently” the CEO of the Cloud Software Group. He's also Treasury's Fiscal Assistant Secretary. Critics believe this could be a massive conflict of interest. Forums: r/inthenews : Elon Musk's Man in the Treasury Is Still Holding Down His Day Job as Software CEO r/politics : Elon Musk's Man in the Treasury Is Still Holding Down His Day Job as Software CEO
Context & Ripple Effects
Krause’s Treasury assignment follows coverage of his DOGE work and his leadership of Cloud Software Group, including its government-security business, while helping pursue federal staff reductions in a previously reported dual role.
The appointment also lands amid reports that Musk- and Thiel-aligned executives replaced CIOs at several federal bodies, extending a broader reshaping of the government’s technology leadership across multiple agencies.
First-order effects
- Krause will perform Fiscal Assistant Secretary duties at the Bureau of the Fiscal Service while remaining CEO of Cloud Software Group, concentrating public responsibilities and private-company leadership in one executive.
- The arrangement immediately raises conflict-of-interest concerns around decisions or access connected to Treasury operations and Cloud Software Group’s business.
Second-order effects
- Treasury and Cloud Software Group face greater scrutiny over how potential conflicts are disclosed and handled, particularly because prior coverage identifies the company as a provider of government software security.
- Other DOGE-linked executives entering government roles may face comparable questions about whether private-sector positions can be separated from public authority.
Third-order effects
- If such dual appointments persist, federal technology governance could rely more heavily on informal conflict-management safeguards rather than a clearer separation between government decision-makers and vendors.
- The pattern may make perceived independence a more consequential factor in government technology procurement and oversight, even where no specific improper action is established.
The trend: DOGE’s government overhaul is testing how far private-sector technology leaders can retain corporate roles while exercising public operational authority.