Vivek Ramaswamy Announces ‘Drastic’ Cuts to Federal Regulations as DOGE Takes Charge

Vivek Ramaswamy, former U.S. presidential candidate and new head of the Department of Governmental Efficiency (DOGE), has announced plans for a significant overhaul of federal regulations. In a December 1 post on X, Ramaswamy promised a dramatic reduction in the scope of federal regulatory oversight, signaling major changes ahead.

A New Era for Federal Oversight

The announcement marks a critical moment in the ongoing push to streamline government regulation. Ramaswamy’s comments are rooted in two key legal shifts that have reshaped how federal agencies can interpret and enforce laws.

The U.S. Supreme Court recently dealt a blow to long-standing regulatory principles. The first of these was the rejection of “Chevron deference,” which had historically granted federal agencies the power to interpret ambiguous laws. The second, the Major Questions Doctrine, established that federal agencies can only take actions where they have clear and explicit legal authority. These changes, finalized in 2024 and 2022 respectively, are set to have profound implications on industries across the board.

In his post, Ramaswamy pointed to these legal developments as the foundation for what he described as a “drastic reduction” in federal regulatory authority. “It’s coming,” he wrote, signaling a new direction for the country’s regulatory landscape.

Impact on the Cryptocurrency Industry

One of the sectors expected to feel the effects of these changes is cryptocurrency. The cryptocurrency space has long been a focal point of regulatory scrutiny, particularly by the Securities and Exchange Commission (SEC). The SEC’s aggressive enforcement approach has been a point of contention, with many in the industry claiming that it stifled innovation and growth.

Ramaswamy’s remarks align with broader political promises, including statements made by President-elect Trump, who has pledged to move toward regulations shaped by industry supporters rather than critics. Trump’s administration, now joined by Ramaswamy and tech mogul Elon Musk through DOGE, aims to recalibrate regulatory approaches, potentially creating a more favorable environment for emerging industries like cryptocurrency.

The recent resignation of former SEC chair Gary Gensler, whose leadership was often criticized for its tough stance on digital assets, also points to shifting priorities in the regulatory landscape. Gensler’s departure comes at a time when many within the blockchain community are hopeful for a new regulatory framework that fosters innovation rather than stifling it.

DOGE’s Vision for Government Reform

The Department of Governmental Efficiency (DOGE), which Ramaswamy will lead alongside Elon Musk, has been given the task of radically reducing government bureaucracy. Their mission is to eliminate unnecessary regulations, cut down wasteful spending, and streamline federal agencies.

This ambitious initiative is a core part of Trump’s vision to address criticisms of federal inefficiency. In a statement made in November, President-elect Trump emphasized that DOGE’s goal is to dismantle the existing regulatory structure, promote efficiency, and restructure agencies to better serve American citizens and businesses.

Progressive voices have also weighed in on DOGE’s mission. Senator Bernie Sanders, in a December 2 post on X, expressed agreement with some of Musk’s critiques of federal inefficiency, acknowledging the need for reform. While his views on regulation differ from those of Ramaswamy and Trump, Sanders has indicated support for efforts to address waste and inefficiency in the federal government.

The Road Ahead: What Does This Mean for the Future?

As DOGE continues to take shape, its role in reshaping the federal regulatory landscape will be closely watched. The potential for a lighter regulatory touch, especially in industries like cryptocurrency, could create opportunities for innovation and growth. However, it remains to be seen whether these drastic cuts will lead to unintended consequences, such as a loss of consumer protections or greater financial instability.

In the coming months, the public will likely see more specific proposals and actions as Ramaswamy and Musk push forward with their agenda. As the administration focuses on efficiency and deregulation, the true test will be balancing the desire for streamlined government with the need for oversight in critical sectors.