Donald Trump’s Recently Established DOGE Faces Post-Inauguration Legal Challenge

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As President Donald Trump begins his second term in the White House, his newly established nongovernmental advisory group, the Department of Government Efficiency (DOGE), is already facing legal challenges.

Donald Trump’s DOGE Under Legal Examination

According to a report from The Washington Post dated January 20, a lawsuit has been initiated by National Security Counselors, alleging that DOGE breaches federal transparency regulations.

A lawsuit was lodged against Elon Musk and Vivek Ramaswamy’s new nongovernmental organization immediately after Donald Trump was officially inaugurated as president. https://t.co/1ZQnybii3H

— The Washington Post (@washingtonpost) January 20, 2025

Documents acquired by The Washington Post indicate that the so-called “public interest law firm” claims that DOGE does not adhere to established executive branch hiring and disclosure protocols.

National Security Counselors assert that DOGE qualifies as a federal advisory committee, which is subject to specific governance standards, including the requirement to submit a governance charter that DOGE has reportedly not yet fulfilled.

Despite these claims, Trump remains confident in the initiative and its leadership.

Trump announced the initiative in November 2024, appointing both Musk and former Republican candidate Vivek Ramaswamy to lead the effort, which aims to significantly reduce governmental “red tape” and excessive spending.

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“Together, these two remarkable individuals will pave the way for my Administration to dismantle Government Bureaucracy, eliminate unnecessary regulations, cut wasteful spending, and restructure Federal agencies,” Trump stated in part during a November 2024 announcement.

However, reports surfaced over the weekend suggesting that Ramaswamy may consider leaving the newly formed advisory committee due to internal tensions within DOGE, although he has not yet publicly addressed the allegations.

Ramaswamy is reportedly preparing to announce his campaign for Ohio governor as soon as the end of the month.

Elon Musk Continues DOGE Efforts Amid Ramaswamy Departure Reports

Ramaswamy’s potential exit from DOGE and the panel’s lawsuit arise at a crucial time for Trump, who has already enacted several executive orders since taking office, one of which designated digital assets as a “national priority.”

President Trump, who was involved in launching his family’s crypto platform Global Liberty Financial last year, has consistently promised to introduce crypto-friendly regulations upon his return to the White House.

“We will have regulations,” Trump stated at the Bitcoin 2024 Conference this past summer, adding, “but from now on, the rules will be written by those who love your industry, not those who hate your industry.”

Trump has also appointed former SEC Commissioner Paul Atkins to lead the federal regulator following years of strict crypto enforcement under now-resigned SEC chair Gary Gensler.

With Trump now officially back in the White House, it appears that a crypto regulatory framework is closer to realization than ever before.

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