Entrepreneur and political commentator Vivek Ramaswamy, who was appointed by President Donald Trump to lead the Department of Government Efficiency (DOGE), is no longer part of the initiative.
The cryptocurrency market reacted negatively after Trump omitted any mention of digital assets during his inauguration speech.
Dogecoin (DOGE) plummeted nearly 20% following this development, according to CoinGecko. The memecoin, which shares its name with the department, fell from over $0.40 on Monday morning to below $0.35 by evening.
Memecoin Moves
Ramaswamy’s departure was first reported by Politico, which also pointed to Elon Musk’s role in orchestrating the exit.
The billionaire entrepreneur and close ally of Trump, reportedly pushed for Ramaswamy’s removal following backlash to a controversial holiday post on X (formerly Twitter). In that post, he criticized American culture in relation to H-1B visas, claiming that U.S. companies hire foreign workers due to a mindset that “venerated mediocrity over excellence.”
Ramaswamy confirmed Monday that he is stepping down from DOGE to focus on his upcoming Ohio gubernatorial campaign, set to launch next week. He voiced confidence in Musk’s leadership and pledged continued support for Trump.
“”Relationship with Elon is good and Vivek will be cheering on DOGE,” source told political reporter Taylor Popielarzm.
DOGE spokesperson Anna Kelly shared in a statement that Ramaswamy’s role was instrumental in getting DOGE off the ground. He is now stepping down to pursue a political career.
“We thank him immensely for his contributions over the last 2 months and expect him to play a vital role in making America great again,” Kelly said.
Trump Drama
DOGE was first proposed by Musk during his first campaign swing for Trump last October. Musk’s goal is to address inefficiencies in federal spending, which exceeds $6.5 trillion annually.
Following his presidential victory, Trump announced Musk and Ramaswamy will lead the department, targeting dismantling bureaucratic structures, eliminating wasteful expenditures, and restructuring federal agencies to enhance their effectiveness.
The establishment of DOGE under the Trump administration sent the memecoin soaring over 130%, per CoinGecko, hitting as high as $0.46 earlier last month.
Musk, believing that government overspending contributes to inflation, envisions DOGE as a means to save taxpayers money. He has set ambitious goals, including a plan to save up to $2 trillion in tax spending through the department’s initiatives.
The goal is for DOGE to become so efficient that it eventually eliminates its own necessity, with a planned expiration date set for July 4, 2026.
Rather than pursuing legislative reforms, DOGE aims to implement changes through administrative actions. This includes cutting federal programs and eliminating improper payments, all while collaborating closely with the White House and the Office of Management and Budget (OMB).
Musk has promised that DOGE will enhance transparency in government spending. He has pledged to publish all decisions and actions taken by the department. Citizens will be encouraged not only to monitor DOGE’s activities but also to provide feedback on its spending decisions.
With Ramaswamy’s departure, Musk is left to lead DOGE alone. The Washington Post reported Monday that the entity is facing a lawsuit from attorneys Jerald Lentini and Joshua Erlich.
The lawsuit, prepared by a public interest law firm, claims DOGE is unlawfully acting as a federal advisory committee without adhering to the Federal Advisory Committee Act (FACA) regulations.
Markets Pull Back
Most cryptocurrencies pulled back after Trump skipped mentioning cryptocurrency in his inaugural address. Bitcoin, surging to an all-time high of $109,000 ahead of Trump’s inauguration, dropped to $101,000.
Despite the absence of cryptocurrency topics in Trump’s first day, industry figures do not completely lose hope. Circle CEO said he expected Trump will soon address crypto policies, including reversing the SEC’s Staff Accounting Bulletin (SAB) 121.
Market participants are also optimistic that Trump will prioritize pardon Ross Ulbricht, Silk Road’s creator. Musk confirmed in a recent statement that “Ross will be freezed.”
