“Crypto Mother” Hester Peirce, an SEC Commissioner, has alluded to this motion. She advisable that the Commodity Futures Buying and selling Fee (CFTC) be given some crypto enforcement tasks by the SEC. The company’s new place on meme currencies is confirmed by the newest announcement.
The SEC cautioned that schemes involving meme cash may nonetheless lead to authorized motion however this transformation. The assertion made it clear that completely different rules may apply to the prosecution of fraudulent exercise by different federal or state entities. The message is obvious — the dearth of SEC enforcement doesn’t imply rip-off initiatives will go unpunished.
By selling extra initiatives and investments, the choice could enhance the marketplace for meme coins. It additionally prompts worries about a rise in scams, although. The popularity of cryptocurrency has been harmed by latest high-profile rug pulls and cash laundering incidents using meme cash.
Much less regulation may let influencers and celebrities to capitalize on the motion and introduce their very own cash. Extra pump-and-dump ways may consequence from this, endangering buyers.
The SEC’s resolution’s long-term results are nonetheless unknown. The motion encourages innovation, nevertheless it additionally exposes the already unstable meme coin market to extra dangers.