Dogecoin experienced a significant spike, reaching a yearly peak of $0.39, after the announcement of a new federal agency sharing its acronym. The newly established United States Department of Government Efficiency (DOGE) is set to focus on reducing government spending and cutting unnecessary regulations. This initiative will be led by Tesla CEO Elon Musk alongside entrepreneur Vivek Ramaswamy.
The idea of Musk joining the government was initially hinted at by President-elect Donald Trump on August 20, who suggested that Musk could take on a cabinet position or advisory role starting in January 2025, though he did not specify which department. However, on November 13, Trump officially named Musk and Ramaswamy as heads of the new agency, which aims to streamline federal operations by eliminating waste and restructuring government entities.
Coinbase CEO Brian Armstrong has publicly endorsed the creation of DOGE, viewing it as a chance to enhance economic freedom in the United States. On November 17, Armstrong took to X to express his belief that DOGE could facilitate greater economic liberty and improve government efficiency. He also proposed constitutional amendments to cap government spending at 10% of the nation’s gross domestic product (GDP), arguing that such measures are necessary to prevent unchecked growth in government size driven by electoral incentives.
Armstrong further suggested establishing a sovereign wealth fund in which every American citizen would hold shares. This fund would distribute dividends from budget surpluses, ensuring that all citizens have a vested interest in fiscal responsibility. “Every citizen then has skin in the game,” he noted, implying that this could lead to more accountable governance.
Despite the coincidental acronym, the new government agency has no direct ties to Dogecoin. However, its announcement triggered a notable price increase for the memecoin, which saw a rise to $0.39 shortly after Musk’s comments about the agency. This surge comes amid ongoing scrutiny regarding Musk’s past influence on Dogecoin’s market value; he successfully defended against allegations of price manipulation in a 2022 lawsuit.
As the new agency prepares to launch its initiatives, all eyes will be on how these developments may impact both governmental efficiency and the cryptocurrency market.
