Ah, the tragic tale of the Libra token, once heralded by the illustrious Argentine President Javier Milei, has once again stirred the pot, igniting fervent calls for a more robust regulatory oversight of those whimsical memecoins. Who would have thought that a digital token could cause such a ruckus? 🤔
“The blame for the Libra memecoin disaster, and other pump-and-dump schemes like it, lies squarely on the shoulders of the regulators, and they are the only ones that can fix this,” declared Nic Puckrin, the co-founder and CEO of Coin Bureau, in a statement to CryptoMoon. It seems the regulators have become the scapegoats of the crypto world! 🐐
Puckrin argues that the surge of fraudulent celebrity and political memecoins is merely a byproduct of the regulatory vacuum left by authorities like the US Securities and Exchange Commission (SEC). A vacuum, indeed! One could almost hear the echoes of laughter from the memecoins as they frolic in this unregulated playground.
SEC crypto task force head Hester Peirce previously stated that memecoin regulation falls outside of the agency’s purview, leaving this matter for Congress and regulators like the Commodity Futures Trading Commission (CFTC). Ah, the classic game of regulatory hot potato! 🎈
“Memecoins cannot remain an unregulated Wild West”
Puckrin insists that the crypto industry, particularly memecoins, requires clear regulation to ensure that token launches are conducted fairly. “The ecosystem isn’t able to regulate itself,” he lamented, adding that “memecoins cannot remain an unregulated Wild West.” Well, partner, it seems we’ve got ourselves a digital frontier! 🤠
Puckrin, a staunch advocate of the original model of initial coin offerings (ICO), noted that this model has been effectively abandoned for years due to the SEC’s relentless crackdowns. “It doesn’t help that the SEC appears to be washing their hands of memecoins,” he quipped, adding:
“Whether it’s the Department of Justice or the CFTC, memecoins have to be regulated by someone. Otherwise, LIBRA will happen again and again.”
Regulatory clarity or a mess?
Puckrin is not alone in his pleas for regulators to take responsibility for the surge of fraudulent memecoins. “The current meta of memecoin grifting is a direct result of the historical failure and corruption of Gary Gensler’s SEC,” wrote Chainlink proponent Zach Rynes on X. It seems the SEC has become the punchline of this crypto joke! 😂
“Instead of helping the crypto industry navigate the complex regulatory environment by issuing no-action letters, creating new rules and exceptions, Gensler engaged in politically-motivated attacks and unfair prosecutions against the crypto industry’s best actors,” Rynes stated. A true masterclass in regulatory mismanagement! 🎭
On the flip side, some industry executives like Christopher Perkins — CoinFund president and former CFTC member — argue that memecoins are “one of the few crypto assets that currently enjoy regulatory clarity.” Clarity? In this chaos? What a delightful paradox! 😅
“For the most part, they [memecoins] are commodities. As such, any activities involving fraud, manipulation or abuse are illegal under current statute,” Perkins wrote on X. According to an analysis by the financial trading portal Traders Union, most global jurisdictions have yet to establish specific guidelines for the memecoin industry, leaving it in a legal gray area. A gray area indeed, like a foggy morning in the countryside! 🌫️
How regulators could approach regulating memecoins?
Although no specific legal framework currently exists for memecoins, that does not mean criminal misuse cannot or should not be prosecuted, The Coin Bureau’s Puckrin told CryptoMoon. “The US Department of Justice should get better tools and increase its resources in order to bring down the most egregious forms of wire fraud, money laundering and market manipulation,” he said, adding
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2025-02-19 13:23