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DOGE lawsuit shortly after Trump inauguration raises concerns
President Donald Trump signed a series of executive orders on day one to create an advisory group called the Department of Government Effectiveness, aimed at imposing massive budget cuts on the U.S. government.
The group, led by Elon Musk, CEO of Tesla/SpaceXhas grandiose goals: restructuring federal agencies and eliminating three-quarters of federal government jobs. Pro-crypto biotech entrepreneur and former presidential candidate Vivek Ramaswamy was co-chair, but left to run for governor of Ohio. The advisory organization now solely led by Musk, named after his favorite cryptocurrency, Dogecoin (DOGE), was sued minutes after the executive order was announced.
The 30-page complaint, filed by the public interest law firm National Security Counselors, claims that DOGE is illegally operating as a federal advisory committee. In doing so, DOGE violates the Federal Advisory Committee Act’s strict laws on hiring, disclosures and other matters, according to the complaint.
The federal law on advisory committees requires that all advisory committees have a list of members “fairly balanced in terms of views and representations and functions to be performed by the advisory committee”, in addition to a charter with clear practices and principles. transparent public archiving processes.
& nbspThe lawsuit alleges that although it functions as an advisory board, DOGE does not meet these requirements.
The legal complaint adds:
“DOGE is not exempt from FACA requirements (…). All DOGE meetings, including those held electronically, must be open to the public.
Hard blow for the price of Dogecoin?
Elon Musk’s involvement in American politics was a welcome sign for coin investors since the Department of Government Efficiency shares the same acronym with Dogecoin’s coin ticker. Known as the “Dogefather,” Musk’s public support for Dogecoin has often sparked price surges.
However, traders and investors in the crypto market remain extremely cautious as the DOGE trial unfolds, as such prior legal drama has put downward pressure on prices. For example, in the Ripple v. SEC case, the cryptocurrency XRP remained in bear grip for years before finally surpass the psychologically important $3 mark in 2025.
It is worth mentioning that this upsurge came after former Securities and Exchange Commission Chairman Gary Gesler was informed. resigned and increased optimism as Donald Trump’s return to the White House approaches.
Nonetheless, Dogecoin’s long-awaited meteoric rise in 2025 may face obstacles as Musk’s DOGE lawsuit could negatively impact market sentiment.
At the time of writing, the crypto industry’s largest and oldest meme coin is trading at $0.3684, down about 1.0% in the last 24 hours, amid a sharp decline in the crypto market, with Trump’s inauguration failing to support prices.