“Crypto Mother” Hester Peirce, an SEC Commissioner, has alluded to this motion. She really useful that the Commodity Futures Buying and selling Fee (CFTC) be given some crypto enforcement duties 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 end in authorized motion however this variation. The assertion made it clear that completely different rules would possibly 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 tasks will go unpunished.
By selling extra initiatives and investments, the choice might improve the marketplace for meme coins. It additionally prompts worries about a rise in scams, although. The status of cryptocurrency has been harmed by latest high-profile rug pulls and cash laundering incidents using meme cash.
Much less regulation would possibly let influencers and celebrities to capitalize on the motion and introduce their very own cash. Extra pump-and-dump techniques may outcome from this, endangering buyers.
The SEC’s determination’s long-term results are nonetheless unknown. The motion encourages innovation, but it surely additionally exposes the already unstable meme coin market to extra dangers.
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