A former key attorney from the Commodity Futures Trading Commission believes his organization possesses proper memecoin regulation abilities.
Elizabeth Davis who now leads Davis Wright Tremaine and was head trial attorney at CFTC expects the commission to handle memecoins effectively even though they have caused problems in the financial markets.
CFTC’s Commitment to Protecting Retail Investors
The CFTC works hard to defend retail market participants from scams and unfair market practices as its focus on protecting them grows stronger. According to Davis everyone can see how well this applies to retail investors who use memecoins.
During current months the debate about memecoins grew tougher as former CFTC Chair Chris Giancarlo pointed his finger at SEC for creating market chaos. Hester Peirce as leader of the SEC crypto task force believes her agency lacks jurisdiction over memecoins.
$TRUMP memecoin dropped from $80 to $13.
A stark reminder that crypto hype can vanish overnight.
Always do your own research before jumping in. pic.twitter.com/uJPOsrrjmf
— Tom 😾 (@TomWeb33) February 26, 2025
The acceptance or rejection of memecoin rules will depend on what legislators set as requirements for cryptocurrency oversight. According to her current analysis spot and memecoins have a strong chance of coming under CFTC oversight. She stated:
“Memecoins would likely be viewed as a digital asset that falls under their broad interpretation of a commodity. The CFTC’s current jurisdictional mandate over memecoins would focus on preventing fraud or manipulation in connection with these products.”
Under her expertise she explains the CFTC defines commodities broadly as it keeps adding digital assets to its commodity spectrum. Under this understanding the CFTC would enforce existing rules against fraud and manipulation of memecoins which it considers commodities.
Trump Memecoin and Libra Token Scandal Stir Controversy
The public discussed financial issues linked to memecoins which gain popularity through internet memes and trends during the initial months of 2025. The Trump election memecoin and Libra token scandal involving Argentine President Javier Milei created significant public controversies.
The crypto community grew displeased when investors lost their money due to unpredictable memecoin risks. Several people want a regulatory system to help maintain market stability.
People in the market sector fault investors for their dangerous investment habits but official monitoring agencies have not created specific rules yet. In an interview Zak Folkman explained how World Liberty Financial co-founder believes traders invest in crypto without doing essential safety checks.
The majority of traders do not get professional money management services however they need to understand that investing all life savings in proposal coins is a dangerous decision, Folkman remarked.
Authorities worldwide are tightening their regulations on Investment. Latest news shows that US Department of Justice started looking into Libra tokens after President Milei backed them.
Members of the crypto market eagerly need official guidelines about how to control memecoins. By defining digital assets broadly and enforcing antifraud measures the CFTC can likely start monitoring memecoins which will define their future growth.
This news is republished from another source. You can check the original article here
