“Crypto Mom” Hester Peirce, an SEC Commissioner, has alluded to this action. She recommended that the Commodity Futures Trading Commission (CFTC) be given some crypto enforcement responsibilities by the SEC. The agency’s new position on meme currencies is confirmed by the most recent announcement.
The SEC cautioned that schemes involving meme coins could still result in legal action notwithstanding this change. The statement made it clear that different regulations might apply to the prosecution of fraudulent activity by other federal or state entities. The message is clear — the lack of SEC enforcement doesn’t mean scam projects will go unpunished.
By promoting more initiatives and investments, the decision may increase the market for meme coins. It also prompts worries about an increase in scams, though. The reputation of cryptocurrency has been harmed by recent high-profile rug pulls and money laundering incidents employing meme coins.
Less regulation might let influencers and celebrities to capitalize on the movement and introduce their own coins. More pump-and-dump tactics could result from this, endangering investors.
The SEC’s decision’s long-term effects are still unknown. The action encourages innovation, but it also exposes the already unstable meme coin market to more risks.
