Elon Musk’s DOGE (Department of Government Efficiency) is facing legal scrutiny yet again. This time, however, it is through a lawsuit stating that it’s not in compliance with federal transparency rules.

The National Security Counselors argue that DOGE should be bound by the Federal Advisory Committee Act of 1972. That law requires any advisory committee that assists the US government to observe strict transparency regulations.

The lawsuit has the potential to shake up Musk’s relationship with DOGE supporters and government transparency laws.

The Federal Advisory Committee Act was established to ensure that advisory groups that advise the government are transparent. The plaintiffs, however, claim that DOGE’s participation in governmental discussions is significant enough to be covered by FACA. If this case continues, it may change the nature of informal advisory bodies in their relations with government policies.

Elon Musk’s DOGE sued minutes after Trump inauguration https://t.co/NcAGlbAIUk

— Guadalupe Correa-Cabrera (@GCorreaCabrera) January 20, 2025

The US General Services Administration says the legislation mandates advisory groups be “objective and accessible to the public.”

Citing FACA, a coalition of educators, public health specialists, veterans, and other groups sued the Department of Government Efficiency on Monday, requesting that the court halt DOGE’s operations until it conforms with the law.

DOGE, which is not an official government agency, was tasked by Trump with producing ideas on how to reduce federal spending, with billionaires Musk and Vivek Ramaswamy claiming they planned to save approximately $500 billion each year.

According to the lawsuit, DOGE appears to have mostly appointed three categories of people to work on its efforts: tech industry executives, those associated with the Trump campaign and his previous administration, and Musk or Ramaswamy associates.

First revealed by Donald Trump last month, the Department of Government Efficiency seemed to be a subtle reference to Musk’s preferred cryptocurrency, Dogecoin.

DOGE supporters responded skeptically, claiming that DOGE is not a formal advisory group and hence does not fall under FACA. This indicates a much deeper debate about the role of bitcoin projects in political and legal contexts. The Musk department, according to supporters, remains independent and not subject to government scrutiny or controls.

Transparency is essentially at the heart of this lawsuit. The court may establish a precedent for other advisory committees based on cryptocurrencies if it rules in favor of the plaintiffs. The implications of this lawsuit could potentially extend beyond the Department of Government Efficiency and impact any crypto systems engaging with the US government.

These legal questions have the potential to become pivotal in determining the future relationship between crypto and the government.

Featured image from Getty Images, chart from TradingView

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