As tensions rise in Washington, a new political feud between Donald Trump and Elon Musk is making waves across financial markets. Trump has threatened to launch a “DOGE audit” against Musk, a pointed jab aimed at scrutinising the billions in government subsidies Musk’s companies have received. The unexpected move comes amid Musk’s public criticism of Trump’s massive new spending bill, and it has created a storm in political circles and crypto markets alike.
Trump vs Musk: Fallout Between Former Allies
Once political allies, Donald Trump and Elon Musk are now openly at odds. The tension erupted after Musk publicly criticised Trump’s “One Big Beautiful Bill,” which Musk claimed would add trillions to the national debt. In response, Trump hit back hard on Truth Social, questioning Musk’s reliance on government subsidies for Tesla, SpaceX, and other ventures.
“Elon may get more subsidy than any human being in history… Without subsidies, Elon would probably have to close up shop,” Trump wrote.
What turned heads, however, was Trump’s proposal that DOGE could audit Musk’s businesses, including those with Dogecoin involvement. It’s a dramatic shift from the usual crypto-friendly stance and signals that Dogecoin, once a meme token with cult status, has now become a political weapon in Washington’s power games.
DOGE Audit: A Threat to Billions in Subsidies
The so-called DOGE audit would likely target the vast government contracts Musk’s companies depend on, from NASA deals with SpaceX to EV credits for Tesla. If it moves forward, this audit could open up all Musk-affiliated financial records, including any Dogecoin-related subsidies or partnerships.
While the DOGE audit remains a threat for now, the mere suggestion has already rattled investors. Tesla shares dropped slightly on the news, and trading volumes in Dogecoin spiked amid speculation that the token may face new regulatory hurdles.
“Perhaps we should have DOGE take a good, hard look at this? BIG MONEY TO BE SAVED!!!” Trump declared.
Trump now wants the DOGE department, previously encouraged by Musk’s allies, to investigate the very subsidies that helped build Musk’s empire.
Crypto and Market Volatility Rise
The DOGE audit controversy is not just a political stunt. It’s already having real effects on the crypto market. Investors are concerned that heightened regulatory scrutiny on Dogecoin could set a precedent for audits on other cryptocurrencies with links to major corporations or government support.
Dogecoin’s price has fluctuated with every new statement from Trump or Musk, as uncertainty over government scrutiny and potential funding cuts grows. Crypto investors are now closely watching how this political showdown evolves, especially given how much of Dogecoin’s popularity is tied to Musk himself.
Moreover, with SpaceX relying on government contracts and Tesla benefiting from years of environmental incentives, a full-blown audit could seriously impact revenue streams, further fuelling market volatility.
GOP in Crisis: Caught Between Two Giants
Republican lawmakers are now caught in a political trap. On one side is Donald Trump, threatening to primary any Republican who stands against his bill. On the other is Elon Musk, vowing to campaign against any GOP member who supports the legislation or DOGE audit.
Musk took to X (formerly Twitter), warning:
“They will lose their primary next year if it is the last thing I do on this Earth.”
Experts say this feud could split the Republican base. Mark Shanahan, a political analyst at the University of Surrey, noted that Trump’s legacy may hinge on this bill, while Musk is working behind the scenes to sabotage it.
It’s a power struggle that may reshape how the US government approaches emerging tech and digital currencies in the years to come.
Is Dogecoin the Next Political Battleground?
What began as a meme coin may now be at the centre of one of the most high-stakes political battles in recent memory. Trump’s threat to audit Elon Musk through DOGE represents a major shift in tone, one that treats crypto not just as a financial tool, but a political weapon.
