Chis appointment represents the culmination of a strategic relationship between Trump and Musk, which has largely fueled speculation and aroused enthusiasm in financial markets, particularly that of cryptocurrencies.
Musk’s appointment to this initiative was preceded by numerous public appearances by the Tech mogul alongside Trump during the 2024 presidential campaign.
At a rally in Madison Square Garden, Trump promised to offer Musk a central role in his administration. Since then, the idea of a government reform body, an acronym for the cryptocurrency Dogecoin (DOGE), has taken shape, all carried by the image of Musk displaying unconditional support, wearing a “dark MAGA” cap. ” in the colors of the Trump campaign.
The collaboration between Trump and Musk also had immediate effects on the cryptocurrency market. After the announcement of Trump’s election, the value of Dogecoin jumped 24%, fueled by the hope that this currency, Musk’s favorite, could benefit from a lighter regulatory framework. Since the campaign, Dogecoin has maintained this dynamic, with an increase of 157% in one year.
DOGE’s mission, under the leadership of Musk and Ramaswamy, will be to reduce government spending and restructure federal agencies deemed inefficient. Trump entrusted the two entrepreneurs with a mandate for profound transformation, including a comprehensive financial audit, the simplification of administrative procedures and the reduction of “fraudulent and improper payments”. Musk assured that DOGE decisions would be shared transparently on Platform X (his own platform), to allow the public to interact and offer suggestions.
However, this appointment raises questions about the risks of conflicts of interest. Unlike federal officials, Musk and Ramaswamy are not required to report their assets or divest themselves of potentially problematic investments. Observers note that deregulation recommendations could benefit Musk’s companies, such as Tesla, SpaceX, Neuralink and even X, a platform he widely uses to disseminate his ideas and influence markets.
For its critics, this situation could give rise to “favoritism” in the planned reforms. For Lisa Gilbert, co-president of the NGO Public Citizen, Musk “knows nothing about government regulations, and his own companies have been routinely in violation of federal rules”. She is concerned about the impact of her recommendations on deregulation, which could be exploited for personal gain.
With this appointment, Trump seems to want to adopt a new approach for his new administration, by integrating the perspective of private business leaders, deemed capable of providing “entrepreneurial efficiency” to public administration. Ramaswamy, who has no experience in politics, shares with Musk this ambitious vision of transforming the public sector through private enterprise, having himself advocated drastic staff reductions in the struggling companies where he had invested.
In the coming months, the recommendations of Musk and Ramaswamy will be decisive for the implementation of this policy of cost reduction and deregulation. Trump hopes the Doge’s efforts will culminate by July 4, 2026, the 250th datee anniversary of the independence of the United States, as a “gift” for American taxpayers.
