Elon Musk and his “DOGE” under accusation: legal case on the horizon after Trump’s inauguration

Elon Musk, recently appointed as head of the Department of Government Efficiency (DOGE) by Donald Trump, faces a lawsuit for alleged violations of the Federal Advisory Committee Act (FACA). The controversy intertwines politics and cryptocurrencies.

Let’s see all the details in this article. 

Memecoin and politics: the effect of Elon Musk’s DOGE on investors and the market

Elon Musk, visionary entrepreneur and controversial figure, is at the center of a new media storm. 

After being chosen by the president-elect Donald Trump to lead the Department of Government Efficiency (DOGE), the agency is now the subject of a legal complaint by the firm National Security Counselors. 

The lawsuit, which should be filed immediately after Trump’s inauguration, accuses the DOGE of having violated the Federal Advisory Committee Act (FACA). That is, a 1972 law that guarantees transparency and public participation in government advisory committees.

In November, Trump appointed Musk and Vivek Ramaswamy, a well-known supporter of criptovalute, to lead the agency with the task of reforming the federal government.

The stated goal is to reduce expenses, eliminate unnecessary regulations, and optimize the functioning of government institutions. 

However, this appointment has not gone unnoticed by the critics, who have immediately questioned the transparency and operational methods of the DOGE.

According to the complaint, the agency led by Musk allegedly ignored the requirements of the FACA, which mandates holding meetings open to the public, recording minutes, and ensuring a balanced approach in managing activities. 

“DOGE is not exempt from the requirements of the FACA,” reads the complaint, which insists on the necessity of complying with the rules, even for meetings held in digital format.

Kel McClanahan, executive director of the National Security Counselors, emphasized that compliance with the law is not an option, but an obligation to ensure that the operations of federal agencies remain transparent and inclusive.

Politics and memecoin: an unexpected connection

Besides the legal issues, the agency has attracted attention for its name, which shares the acronym with Dogecoin, the popular cryptocurrency. 

This detail has generated excitement among memecoin investors, who see Musk’s involvement as a potential catalyst for the market. 

In November, the market value of Dogecoin surpassed that of Porsche, reaching 56 billion dollars, thanks to the indirect support stemming from the association with DOGE.

The official announcement on November 12 outlined the vision of DOGE. That is, to create a leaner, more efficient, and less bureaucratic government by July 4, 2026, on the occasion of the 250th anniversary of the Declaration of Independence. 

However, the path towards this goal already seems bumpy, with criticisms and legal obstacles threatening to slow down the project.

Ramaswamy, known for his support of cryptocurrencies, had proposed a massive deregulation of the sector during his presidential campaign, before withdrawing in January 2024.

His appointment, along with that of Musk, highlights Trump’s intention to rely on influential figures from the technological and financial landscape to implement his reform policies.

A new era for cryptocurrencies?

The intertwining of politics, governmental efficiency, and cryptocurrencies suggests that DOGE could be a laboratory for new synergies between traditional and innovative sectors. 

However, the success of the agency will depend on its ability to address the criticisms and demonstrate that its vision is not just an exercise in style.

With the 2026 elections on the horizon and growing attention on cryptocurrencies, the DOGE thus represents a bold bet. 

Will Musk manage to turn this controversial initiative into an example of success, or will it remain a symbol of the political complexities of our time? The answer will emerge in the coming years.