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- Elon Musk and Vivek Ramaswamy will lead the newly announced U.S. Department of Government Efficiency.
- Coinbase CEO Brian Armstrong supports the agency, proposing constitutional spending limits and a sovereign wealth fund to enhance economic freedom.
- Dogecoin’s price surged to $0.39 following the agency’s announcement, driven by the shared acronym with the cryptocurrency.
Coinbase CEO Brian Armstrong has announced the establishment of the Department of Government Efficiency (DOGE). The new federal body would help to streamline government operations by reducing waste and cutting regulations. Under the proposed structure, the agency will be run by Tesla’s CEO Elon Musk and entrepreneur Vivek Ramaswamy from January 2025.
The announcement followed speculation in August about Musk potentially taking an advisory role in Trump’s administration. Trump formally introduced the new department on November 13, emphasizing its focus on restructuring federal agencies to improve efficiency. The department’s acronym coincidentally matches the ticker for the popular cryptocurrency Dogecoin (DOGE), sparking significant attention.
Brian Armstrong Advocates Fiscal Reform and Economic Freedom
Coinbase CEO Brian Armstrong publicly endorsed the creation of the DOGE agency, as an opportunity to promote economic freedom and enhance governmental efficiency. On November 17, Armstrong shared his thoughts on X (formerly Twitter), proposing constitutional amendments to limit federal spending to 10% of the U.S. gross domestic product (GDP).
. @DOGE is a once in a lifetime opportunity to increase economic freedom in the U.S. and cut the size of government back to health.
— Brian Armstrong (@brian_armstrong) November 17, 2024
The founding fathers were geniuses but (with humility) may have missed the adverse incentives which grow the size of democratic government over…
Armstrong noted that while the founders laid a strong foundation, democratic governance has created incentives for increasing government size through promises to expand public services. However, Armstrong suggested long-term reforms, including a cap on government expenditure.
He also advocated for a U.S. sovereign wealth fund where citizens would hold shares and receive dividends from budget surpluses, ensuring collective accountability and fiscal discipline. These ideas, according to Armstrong, could align government incentives toward financial responsibility and prevent unchecked spending.
Dogecoin Price Surges Amid Agency Announcement
Though the new department has no affiliation with Dogecoin, the meme coin experienced a notable price surge following the announcement. On November 14, a day after Musk revealed details of the agency, Dogecoin’s price climbed to a yearly high of $0.39 before undergoing a slight correction.
This surge reflects the strong influence of Musk’s announcements on Dogecoin’s market performance. Musk has faced allegations of manipulating Dogecoin prices but successfully defended himself in a 2022 lawsuit. Despite the lack of a direct connection between the government agency and the cryptocurrency, the shared acronym appears to have reignited investor enthusiasm.
The launch of the Department of Government Efficiency underscores efforts to reform federal operations, while its coincidental ties to Dogecoin add an unexpected layer of attention. Armstrong’s proposals for fiscal reform and economic freedom contribute to a broader conversation on balancing governance and economic incentives.