President-elect Donald Trump has tapped billionaire backer Elon Musk and entrepreneur Vivek Ramaswamy — who ran for the Republican candidacy in the 2024 election cycle — to lead the new "Department of Government Efficiency (DOGE)" in his incoming administration. The agency will be tasked with slashing excessive regulations and cutting wasteful government spending.

To discuss the implications of this move, Catalysts welcomes Columbia Law School professor John C. Coffee.

"They're going to have quite a lot of impact," Coffee tells Yahoo Finance, though he notes the proposed department won't be an official agency until Congress approves its creation.

Coffee cautions that Musk's appointment could present conflicts of interest, as the Tesla (TSLA) CEO may be in violation of "a number of federal statutes" due to his varied business interests. Coffee suggests that if Musk accepts the role, he might need to forgo a salary and secure documentation specifying he is a "special adviser rather than a paid employee."

Coffee also comments on the regulatory environment that could shift, especially for crypto, if Trump appoints new Securities and Exchange Commission (SEC) and Federal Trade Commission (FTC) chairs.

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This post was written by Angel Smith