Following the announcement of a new government agency with the same acronym as Dogecoin, the popular memecoin surged to a yearly high of $0.39. This news coincides with Elon Musk’s appointment to lead the newly established Department of Government Efficiency (DOGE), alongside entrepreneur Vivek Ramaswamy.
A New Role for Elon Musk in Trump's Administration
On November 13, President-elect Donald Trump officially announced that Musk and Ramaswamy would head the Department of Government Efficiency, a federal agency focused on streamlining government operations, reducing waste, and cutting down excessive regulations. The formation of this agency is part of Trump’s broader plan to restructure federal operations, starting in January 2025.
This announcement comes after Trump previously hinted in August about bringing Musk into his cabinet, though he did not specify at the time which role Musk would take.
Brian Armstrong’s Vision for “DOGE” and Economic Freedom
Coinbase CEO Brian Armstrong sees the newly created agency as a unique chance to promote economic freedom in the United States. On November 17, Armstrong shared his thoughts on social media, describing DOGE as a potential catalyst for reducing government inefficiencies. He proposed constitutional reforms to limit government spending, suggesting a cap of 10% of the country’s gross domestic product (GDP).
Armstrong emphasized that while the founding fathers laid a strong foundation for the nation, they may not have fully anticipated the incentives that drive the growth of government spending. He argued that unchecked government expansion often results from politicians promising increased benefits to win elections.
To address this, Armstrong proposed that amending the constitution could help control government expenditures, thereby preventing long-term fiscal mismanagement. He suggested that the government should be incentivized to spend more efficiently.
Sovereign Wealth Fund Proposal
Armstrong also floated the idea of creating a sovereign wealth fund for the United States, where all citizens would have a stake. He proposed that any budget surplus could be distributed as dividends to American citizens, giving everyone a vested interest in the country’s financial health. “This would ensure that every citizen has skin in the game,” Armstrong said, adding that Congress might hold a slightly larger share.
Dogecoin Price Surges Amid Government Announcement
Despite no direct connection between the new government department and the Dogecoin cryptocurrency, the similar acronym sparked excitement in the crypto community. Following Musk’s announcement, Dogecoin saw a spike in its value, reaching a yearly high of $0.39 before experiencing a slight correction.
Musk, who has been known for his influence on Dogecoin’s market movements, previously faced legal challenges over alleged price manipulation. However, he successfully defended himself against those allegations in a 2022 lawsuit.
Looking Forward
With Musk’s influence and the establishment of the Department of Government Efficiency, the crypto and financial sectors are closely watching how these developments might affect the regulatory landscape and market sentiment. Armstrong’s proposals for economic reform highlight a broader push within the industry to align government operations with principles of efficiency and economic freedom.