Lack of established rules for digital assets creates disagreement between US Securities and Exchange Commission and Commodity Futures Trading Commission about memecoins regulation. Elizabeth Davis believes the CFTC stands out as the leading authority to control memecoin activities.
Davis stated the CFTC’s priority to shield small investors against fraud makes it a proper watchdog for memecoin markets. Based on growing attention to retail investors the CFTC works to secure them from memecoin market manipulation and fraud activities. The debate about memecoin legislation remains difficult for everyone to agree upon.
CFTC Should Regulate Memecoins
Chris Giancarlo blamed the SEC for creating chaos in the memecoin market during his time as CFTC chair. As head of the SEC’s crypto task force Hester Peirce stated memecoins exist outside the regulatory authority of her agency. Davis’s view supports the idea that the CFTC should rule over memecoins once federal digital asset laws take effect.
She thinks the CFTC regulatory authority over spot crypto would also extend to memecoins because of current direction changing winds. According to Davis the CFTC should take responsibility for memecoin regulation but she believes U.S. Congress will include membrane coins under digital asset laws by the next year.
The absence of clear regulations has made investors worry more since Donald Trump started his memecoin project and the Libra token crisis involving President Javier Milei. The need for authorities to control memecoin activity has increased because investors keep losing money from their risky investments.
Despite differing regulator approaches some crypto professionals believe investors were responsible for their financial losses. World Liberty Financial co-founder Zak Folkman opposes investors putting their funds into highly risky memecoins. To protect your life savings from memecoin losses I wouldn’t recommend financial guidance though risking it is foolish according to my thoughts. Folkman remarked.
Reports from Argentina confirm that US Justice Department personnel now probe Libra token which Milei recommended for support during their investigation.
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