The US Department of the Treasury is at the center of a major controversy, accused by Republicans of allowing unauthorized access to sensitive data to the Department for Government Efficiency (DOGE), led by Elon Musk. Meanwhile, legislators French Hill and Bryan Steil have introduced a new bill on stablecoins, titled “Clarity for Payment Stablecoins Act,” with the aim of strengthening the global dominance of the US dollar.
The Republicans accuse the US Treasury of having illegally provided confidential data to the DOGE
The Department for Government Efficiency (DOGE), led by Elon Musk, has been accused of gaining unauthorized access to the payment systems of the United States Treasury Department. These systems contain personal and financial sensitive data of millions of Americans, such as social security numbers and bank accounts.
The lawsuit was filed by 19 Democratic attorneys general, led by New York Attorney General Letitia James. They argue that the Trump administration allowed Musk’s team to access the central Treasury payment system in violation of federal law. The lawsuit claims that access to Treasury records could interfere with funding already allocated by Congress and violate federal administrative law and the doctrine of separation of powers of the United States Constitution.
The legal intervention of the Democrats against the DOGE came after Elon Musk’s agency began investigating large money flows from the US Treasury, approved during the Biden administration. These transactions include payments for immigration programs, diversity, equity, and inclusion projects, leasing for underutilized federal buildings, and scholarship grants.
Federal judge orders DOGE to delete obtained data: Musk responds firmly
The federal judge Paul Engelmayer has decided to temporarily limit DOGE’s access to these data, citing the risk of irreparable harm and the possibility that the systems become more vulnerable to hackers. Engelmayer has ordered Musk and his team to immediately destroy any copies of the data downloaded from the Treasury’s systems.
Musk reacted by attacking the judge on social media, calling him an “activist dressed as a judge” and demanded impeachment, meaning a trial for serious shortcomings or misconduct.
The same CEO of X and patron of Tesla then publicly commented as follows:
“How can we stop fraud and waste of taxpayers’ money without seeing how resources are spent? The amount of fraud in government payments is much greater than you think.”
According to Fox News, since the beginning of the 2000s, the federal government has wasted 2.7 trillion dollars in improper and fraudulent payments.
The issue between democratic unions and DOGE is currently awaiting a new hearing scheduled for February 14.
We remind you that the Department for Government Efficiency (DOGE) was created to discover and eliminate what the Trump administration considers waste of public money. However, the access of this entity to Treasury records and the inspection of various government agencies have raised concerns among critics about the growing power of Musk and the misuse of data considered confidential.
US politicians consider a new stablecoin law in favor of the US dollar
While Musk’s DOGE and the US Treasury Department face heavy accusations, legislators French Hill and Bryan Steil have proposed a new draft law on stablecoins. The document, titled “Clarity for Payment Stablecoins Act”, aims to regulate the stable digital asset sector in an effort to strengthen the global dominance of the US dollar.
In detail, the draft would impose a two-year ban on “stablecoin con garanzia endogena“, that is, stablecoins backed by self-issued cryptocurrencies. This means that stablecoins must be pegged to tangible assets or fiat currencies, with reserves like the US dollar rather than being based on algorithms and extremely volatile assets.
French Hill specified that the draft aims to clarify regulations on payment stablecoins by offering a federal pathway for stablecoin issuers.
The same legislator emphasized the importance of working with the Trump administration, the House, and the Senate to “get things right” and promote a dollar-backed stablecoin landscape.
The bill also requires the US Department of the Treasury to conduct a detailed study on the crypto sector and stablecoins, in order to better understand their impact and develop effective regulations. Nowadays, the value of the “USD-pegged” digital currency market exceeds 230 billion dollars, with a constantly growing trend according to data from The Block.
In the meantime, President Donald Trump’s Crypto Czar, David Sacks, commented on the new reform proposal, stating that this is the right path to “extend the dominance of the dollar internationally.”
It is important to highlight how the draft presented by Hill and Steil came shortly after the regulation “Genius Act” proposed by Bill Hagerty, which discussed placing the stablecoins USDT and USDC under the supervision of the FED.
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