One of DOGE’s main goals will be to reform federal bureaucracy through entrepreneurial strategies. This announcement fueled a 9+% rally in Dogecoin’s price. Trump also plans to bypass the Senate for key appointments, which could be the case when it comes to replacing SEC Chair Gary Gensler. Crypto-friendly Scott Bessent, founder of Key Square Group, is Trump’s top pick for Treasury Secretary, but experts like Swan CEO Cory Klippsten warn that Trump’s relaxed regulatory approach may create a “Wild West” environment for altcoins that could overshadow Bitcoin’s stability.
Trump Appoints Musk and Ramaswamy to Drive Government Reform
President-elect Donald Trump tapped Tesla CEO Elon Musk and Strive Enterprises co-founder Vivek Ramaswamy to lead the newly created Department of Government Efficiency, or ”DOGE.” Trump announced that this department will focus on overhauling the federal government’s bureaucratic structures to reduce excessive regulations, minimize wasteful spending, and bring sweeping changes to federal agencies.
The president-elect also shared that this new agency will work closely with the White House and the Office of Management and Budget, but from an independent stance to apply what he described as an ”entrepreneurial approach” to reform.
Elon Musk has been a vocal supporter of both Trump and the meme cryptocurrency Dogecoin, whose ticker matches the acronym for the new department. Musk even previously floated the idea of a government body named “DOGE.” Musk’s support for Trump has been large as he invested heavily in Trump’s re-election campaign and made appearances at several campaign rallies.
Ramaswamy previously contested against Trump in the Republican primaries before endorsing him, and shared the announcement very enthusiastically on social media. He declared, “We will not go gently.” Musk also shared his excitement on X by posting, “Threat to democracy? Nope, threat to bureaucracy!!!”
Naturally, this news positively impacted Dogecoin as the cryptocurrency saw a surge of about 9% in the last 24 hours alone to reach $0.3945. Impressively, DOGE’s price increased by over 89% over the past week as well, and now boasts a $57+ billion market cap.
Dogecoin’s price action over the past week (Source: CoinMarketCap)
Trump Plans to Bypass Senate for Key Appointments
President-elect Donald Trump also recently hinted at a plan to bypass the Senate confirmation process for appointments in his new administration, which could possibly include a replacement for the current Securities and Exchange Commission (SEC) Chair, Gary Gensler. In a recent post on X, Trump claimed that he could determine the next Senate majority leader for the incoming Congress in January 2025, provided they support his use of recess appointments. According to Trump, this approach will allow him to install key figures “immediately” by circumventing the questioning and approval process that is typically required by lawmakers.
The U.S. Constitution grants the president the power to make temporary appointments during Senate recesses, but these commissions expire at the end of the Senate’s next session. Trump used this authority during his first term to appoint officials who faced a lot of opposition in the Senate. Although it is mainly intended as a temporary measure, recess appointments allow presidents to fill critical positions without immediate Senate approval.
Trump’s pledge to remove Gensler has been a big part of his campaign appeal to the crypto community specifically, but experts suspect that he could actually lack the authority to dismiss the SEC chair without any sufficient cause. Gensler was appointed by President Joe Biden in 2021 and was approved by the Senate in a 54-45 vote. His term is set to run through June of 2026.
Gary Gensler
While some regulators sometimes decide to step down after a shift in political leadership, Gensler has not indicated at all that he may resign.
Precedents for this situation are mixed. Former SEC Chair Mary Jo White, who was appointed by President Obama, left office on Trump’s inauguration day in January of 2017. However, her successor Jay Clayton, required Senate approval. This led to a temporary gap in leadership. During that period, Commissioner Michael Piwowar served as acting chair until the Senate confirmed Clayton.
So far, Trump has not publicly named any candidates to replace Gensler. He also has not shared that he will rely solely on recess appointments to install his preferred picks.
Pro-Bitcoin Scott Bessent Leads Trump’s Treasury Picks
Scott Bessent, the founder of Key Square Group and a former chief investment officer at Soros Fund Management, is a top contender for the position of U.S. Treasury Secretary in President-elect Donald Trump’s incoming administration. Bessent is known for his supportive stance on cryptocurrencies. He has also voiced his enthusiasm for Bitcoin and plans to promote financial freedom and introduce young investors to the market.
Bessent is very optimistic about Trump’s embrace of the crypto industry, and described the crypto economy as integral to the values of freedom and sustainability. Recently, he commented on Bitcoin’s unique appeal, especially its capacity to attract younger and previously unengaged market participants. For Bessent, encouraging a financial culture where people feel the system works for them is fundamental to American capitalism.
Trump reportedly narrowed down his options for Treasury Secretary to Bessent and billionaire investor John Paulson, who was an economic adviser to Trump’s 2016 campaign. While Trump previously mentioned Paulson as a preferred candidate, Paulson’s long-standing skepticism about crypto contrasts with Bessent’s more pro-crypto outlook.
Scott Bassent
In 2021, Paulson criticized cryptos like Bitcoin as having “no intrinsic value” and he called them overly volatile compared to traditional markets. Despite calling Bitcoin a “scam” in 2021, Trump has since rebranded himself as pro-crypto by declaring “crypto is the future” during his 2024 campaign.
In addition to selecting a Treasury Secretary, Trump will be appointing a number of other officials for key financial regulatory bodies. Some of the potential candidates for SEC chair reportedly include Daniel Gallagher, Hester Peirce, and Mark Uyeda.
“Wild West” Altcoin Surge Under Trump
Swan.com CEO Cory Klippsten recently shared some of his concerns about the potential impact of Donald Trump’s re-election on the crypto market, specifically regarding a surge in altcoin projects under relaxed regulatory conditions. Klippsten warned that looser regulations could create a “Wild West” atmosphere that will allow speculative and risky altcoin ventures to flourish. He believes this environment could divert demand and resources away from Bitcoin, which could potentially weaken its position as the primary digital asset.
Klippsten described this environment as “the age of scambling,” which is a mix of “scamming and gambling.” He argued that this shift might pull focus away from Bitcoin’s long-term stability and its core value as a decentralized asset, making it harder for Bitcoin to grow as a reliable store of value.
However, Klippsten also pointed out that Bitcoin is increasingly being seen as separate from the speculative nature of many altcoins. In media and political discussions, Bitcoin’s status as a sound asset is being recognised, which could ultimately reinforce its unique position in the market during a possible altcoin surge.
This article was originally Posted on Coinpaper.com
