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

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

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

FACA Controversy

The Federal Advisory Committee Act was established to be sure that advisory groups that advise the federal government are transparent. The plaintiffs, nevertheless, claim that DOGE’s participation in governmental discussions is important enough to be covered by FACA. If this case continues, it could change the character of informal advisory bodies of 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 laws mandates advisory groups be “objective and accessible to the general 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.

Trump Taps Musk To Cut $500B From Federal Spending

DOGE, which isn’t an official government agency, was tasked by Trump with producing ideas on methods to reduce federal spending, with billionaires Musk and Vivek Ramaswamy claiming they planned to avoid wasting roughly $500 billion every year.

President-elect Donald Trump and Elon Musk (left). Image: Getty Images.

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

Image created by DALL-E.

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

Dogecoin market cap currently at $50.8 billion. Chart: TradingView.com

Defenders Fight Back

DOGE supporters responded skeptically, claiming that DOGE isn’t a proper advisory group and hence doesn’t fall under FACA. This means a much deeper debate concerning the role of bitcoin projects in political and legal contexts. The Musk department, in line with supporters, stays independent and never subject to government scrutiny or controls.

Transparency Issues And Legal Ramifications

Transparency is actually at the center 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 change into pivotal in determining the longer term relationship between crypto and the federal government.

Featured image from Getty Images, chart from TradingView