In a town hall meeting in Green Bay, Wisconsin, Elon Musk dispelled any rumors linking the U.S. government to Dogecoin through the Department of Government Efficiency (DOGE). Musk clarified that despite the similarity in names, there are no plans for the government to utilize Dogecoin. The purpose of the DOGE initiative, according to Musk, is solely to enhance government efficiency.

The confusion arose when Dogecoin's Shiba Inu mascot briefly appeared on the department's website in February 2025, causing speculation about the cryptocurrency's involvement. Although Dogecoin experienced a 14% surge in value following this incident, Musk made it clear that Dogecoin is not part of the department's objectives, which seek to streamline government agencies and reduce costs. This restructuring has faced controversy, with legal challenges due to workforce reductions impacting programs related to climate change and scientific research.

The DOGE initiative, introduced in late 2024 under the Trump administration, aims to optimize government operations and eliminate unnecessary regulatory overlap. Musk selected the DOGE name based on internet suggestions, abandoning the original plan of calling it the Government Efficiency Commission. Despite Musk's denial of any association between Dogecoin and the department, Dogecoin's value decreased by 3.2%, dropping to $0.16 within 24 hours of clarification after the initial surge triggered by the Shiba Inu mascot appearance.

Although Musk's exact role within the department is unclear, the White House has designated him as a senior advisor without policymaking authority, while President Trump has referred to him as the department's leader. Musk confirmed that he is not receiving any compensation for his involvement in the project. The overarching goal of the department is to shrink the federal government's size and enhance its cost-effectiveness, aligning with the key objectives of Trump's administration.