Dogecoin has experienced a significant surge, reaching a yearly peak of $0.39, following the announcement of a new federal agency that shares its initials. The newly formed Department of Government Efficiency (DOGE) will focus on cutting government spending and cutting unnecessary regulations. The initiative will be led by Tesla CEO Elon Musk along with 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 a cabinet position or advisory role starting in January 2025, though he did not specify which department. However, on November 13, Trump officially appointed Musk and Ramaswamy to head the new agency, which aims to streamline federal operations by eliminating waste and restructuring government entities.
Coinbase CEO Brian Armstrong has publicly supported the creation of DOGE, seeing it as an opportunity to increase economic freedom in the United States. On November 17, Armstrong took to X to express his belief that DOGE could facilitate greater economic freedom and improve government efficiency. He also proposed constitutional amendments to cap government spending at 10% of a country’s gross domestic product (GDP), arguing that such measures are necessary to prevent uncontrolled growth in the size of government driven by electoral incentives.
Armstrong also proposed creating a sovereign wealth fund in which every American citizen would own shares. The fund would distribute dividends from budget surpluses, ensuring that every citizen would have a stake in fiscal responsibility. “Then every citizen would have skin in the game,” he noted, implying that this could lead to more accountable governance.
Despite its coincidental acronym, the new government agency has no direct connection to Dogecoin. However, the agency's announcement caused a significant surge in the price of the memecoin, which rose to $0.39 shortly after Musk's comments about the agency. The surge comes amid ongoing scrutiny over Musk's past influence on Dogecoin's market value; he successfully defended himself against price manipulation charges in a 2022 lawsuit.
