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Musk’s Team Gains Access To Sensitive Federal Payment Systems, Sparking Controversy

In a move raising eyebrows across Washington, Elon Musk’s Department of Government Efficiency (DOGE) has been granted access to the federal payment system, which handles trillions of dollars in government funds annually, according to US media reports.

While DOGE is not an official agency but a team within the administration, sources suggest the group now has access to sensitive personal data of millions of Americans, raising concerns about privacy and oversight.

The situation reportedly led to a standoff at the United States Agency for International Development (USAID), where two officials were placed on leave after resisting DOGE’s efforts to access critical government systems.

The White House and Treasury Department have yet to comment. Just days after President Donald Trump announced the formation of DOGE, the team has spread across federal agencies with the goal of slashing government spending.

Musk, who helped establish the team, has enlisted support from allies in Silicon Valley and his private companies. This has created turbulence at agencies like the Treasury Department and USAID—two entities Musk has criticized on social media. On X (formerly Twitter), Musk called USAID “evil” and accused Treasury officials of “breaking the law every hour of every day,” further stoking controversy.

The Treasury division involved in these changes handles critical federal payments, including Social Security, government salaries, and money allocated by Congress—totaling nearly $6 trillion.

The controversy also extends to USAID, which distributes billions in aid. The agency’s website went offline, and its X account appears to have been deactivated. Reports claim DOGE members sought access to a classified facility, a SCIF (Sensitive Compartmented Information Facility).

Meanwhile, the broader federal workforce faces changes under Trump’s administration. Executive orders have sparked confusion, with employees receiving instructions to report colleagues allegedly disguising diversity efforts and encouraged to take paid resignations, leading to unease.

In response, many agencies, including the CDC, have removed references to diversity and inclusion and LGBTQ+ content from their websites, resulting in broken links, including those on LGBTQ+ health and mpox vaccines. While supporters argue diversity programs address historical inequalities, critics claim they can create new forms of discrimination, intensifying the debate.

Bitcoin Surges 23% In A Week As Investor Optimism Returns

Bitcoin was on track for a weekly gain of around 23% on Friday as a series of positive macroeconomic and policy developments boosted investor sentiment.

The cryptocurrency was trading about 6% higher at roughly $77,000, up from around $62,800 at the start of the week. Crypto-related stocks also rallied, with Coinbase and Circle gaining more than 9%, while Strategy rose 7%.

Macro Factors Fuel Rally

Bitcoin’s latest surge began Wednesday after Treasury yields fell sharply following a major intervention by the U.S. Treasury in the bond market. Lower yields eased pressure on risk assets and helped trigger a broader move into cryptocurrencies.

The rally was further amplified by a major short squeeze. Around $2.7 billion in crypto short positions were liquidated, according to CoinGlass.

Max Stuedlein, head of Partnerships at Sygnum APAC, said the move reflected an alignment of macroeconomic and policy catalysts, including the Treasury’s decision to increase buybacks of longer-dated government debt.

Clarity Act Boosts Sentiment

Investor confidence improved further on Thursday as the White House and crypto industry leaders made a final push to advance the Clarity Act in the coming weeks.

The legislation is widely viewed as a potential catalyst for the crypto market, although its chances of passing remain relatively limited.

Despite the rally, bitcoin remains well below its 2026 high of $94,820 reached in January and its all-time high of $126,198, set last October.

Analysts See More Volatility Ahead

Lucy Gazmararian, founder and managing partner at Token Bay Capital, said the crypto market may be approaching the end of its bear cycle.

She expects bitcoin could experience one more decline of around 20% before the market turns, pointing to historical cycles and the recent liquidation of heavily leveraged short positions.

Gazmararian also described bitcoin as a long-term hedge against monetary debasement, while warning that its short-term price remains highly volatile and driven by market cycles.

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