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Cryptocurrency News Articles

Elon Musk's Department of Government Efficiency (DOGE) Sued for Violating Federal Transparency Law

Jan 21, 2025 at 03:22 am

The Department of Government Efficiency (DOGE), led by Elon Musk, is facing a lawsuit alleging violations of the Federal Advisory Committee Act (FACA) 1972.

Elon Musk's Department of Government Efficiency (DOGE) Sued for Violating Federal Transparency Law

The Department of Government Efficiency (DOGE), led by Elon Musk, is facing a lawsuit over its alleged failure to comply with the Federal Advisory Committee Act (FACA) of 1972. The legal complaint, filed by the National Security Counselors, claims that DOGE has violated federal transparency and disclosure requirements.

Filed shortly after Donald Trump's inauguration as President of the United States, the lawsuit could have significant implications for the agency's ongoing work.

According to the 30-page complaint, FACA mandates that all advisory committees provide public access to their meetings and follow specific protocols for member recruitment. Kel McClanahan, the law firm's executive director, highlighted the importance of opening DOGE's meetings, including virtual ones, to the public.

"The law requires that these meetings be open to the public, and that the public has an opportunity to attend in person," McClanahan said. "DOGE has not done this, and has not documented these meetings or taken steps to ensure transparency."

The lawsuit alleges that DOGE has failed to comply with these requirements, arguing that the agency's failure to disclose its meetings and ensure transparency has undermined the public's ability to participate in the government's decision-making processes.

The legal action comes as DOGE is set to finalize its work by July 4, 2026, coinciding with the 250th anniversary of the Declaration of Independence. The agency is expected to release a blueprint for reforming the federal government, outlining plans to cut wasteful expenditures and streamline federal operations.

Musk and Ramaswamy's Roles in DOGE

In November 2024, Donald Trump appointed Elon Musk to lead the Department of Government Efficiency, along with Vivek Ramaswamu. The primary objective of DOGE is to reduce government spending and eliminate redundant regulations.

Ramaswamy, a known advocate for cryptocurrency deregulation, joined Musk in overseeing DOGE's efforts to improve federal agency efficiency. During his 2023 presidential campaign, Ramaswamy called for significant changes in cryptocurrency regulation. However, he dropped out of the race in January 2024.

The acronym "DOGE" has also drawn attention from Dogecoin (DOGE) traders, with some speculating on possible connections between the agency and the cryptocurrency. Given Elon Musk's public endorsements of Dogecoin, traders are closely monitoring any news related to DOGE.

In November, Dogecoin surpassed Porsche's $56 billion market capitalization, coinciding with Musk's involvement in DOGE. Notably, the cryptocurrency experienced increased activity among memecoin traders following this development.

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