Coinbase (COIN) CEO Brian Armstrong Has Thrown His Support Behind the Newly Announced U.S. Department of Government Efficiency (DOGE)

The agency, led by Elon Musk and Vivek Ramaswamy, aims to cut federal waste and streamline government operations.

Coinbase (NASDAQ:COIN) CEO Brian Armstrong has proposed bold economic reforms following the announcement of the U.S. Department of Government Efficiency (DOGE). The agency, headed by Elon Musk and Vivek Ramaswamy, aims to cut federal waste and streamline government operations.

Armstrong sees the creation of DOGE, an acronym that also happens to belong to the popular cryptocurrency Dogecoin (NASDAQ:DOGE), as an opportunity to "increase economic freedom" in the country. He took to X, a platform founded by Musk, to suggest a constitutional amendment to cap government spending at 10% of GDP.

"The founding fathers were geniuses, but may have missed the adverse incentives which grow the size of democratic government over time," Armstrong wrote in the post.

The Coinbase CEO also proposed a sovereign wealth fund where all U.S. citizens would hold shares, earning dividends from budget surpluses. He believes this model would align citizens' incentives with fiscal responsibility.

"Every citizen then has skin in the game," he added, noting that Congress could even hold a larger stake.

Armstrong's comments come as Dogecoin's price surged to a yearly high of $0.39 following the announcement of the DOGE agency. While the agency has no connection to the memecoin, Musk's past involvement with DOGE is seen as a contributing factor to the price increase.

Musk, who was earlier accused of manipulating DOGE prices, successfully defended himself against the allegations in 2022. However, his influence over crypto markets remains a subject of discussion.

Coinbase is yet to announce its Q4 results, but analysts are expecting a revenue decline. The company, which has been hit by the crypto winter and regulatory pressures, is expected to post a loss for the full year.

Coinbase shares closed down 0.3% at $321.09 on Friday.