The Quake of the LIBRA memecoin after Argentine President Javier Milei endorsed it raised calls for cryptocurrency markets to have more regulatory controls. When LIBRA memecoin failed rapidly people in the industry started questioning why regulators had not taken action against swindlers sooner.
Nic Puckrin from Coin Bureau criticizes regulatory officials since they failed to stop scams like LIBRA. As the CEO of Coin Bureau Nic Puckrin tells analyst that regulators need to address the issues because they caused the memecoin failure on LIBRA.
According to him insufficient control measures from authorities led to fake political and celebrity memecoin growth. The U.S. SEC crypto task force leader Hester Peirce explains the SEC has no authority over memecoins because they do not fit within their established jurisdiction. According to Peirce the United States Congress and CFTC regulatory body should perform this role.
Existing Laws And Memecoins
He emphasized that a set of effective rules would help create reliable launches while preventing improper practices. The system needs external control according to him. The memecoin sector needs established safety rules to prevent illegal activities.
For many years Puckrin supported the original Initial Coin Offering model before criticizing the SEC for cracking down on ICOs in recent times. The SEC does not regulate memecoins according to Puckrin which made him express his anger.
“Whether it’s the Department of Justice or the CFTC, memecoins have to be regulated by someone. Otherwise, LIBRA will happen again and again.”
Multiple stakeholders in the industry share these opinions about the current situation. Zach Rynes from Chainlink explains that regulatory incapability drives the growing number of fake memecoins. The widespread memecoin fraud emerges from the past mistakes of SEC Chairman Gary Gensler according to X platform user Zach Rynes. He told the public the SEC favors political enforcement initiatives instead of clear industry rules.
Although numerous business leaders think memecoins are controlled by existing laws. According to Christopher Perkins he leads CoinFund and his background at CFTC helps establish memecoins as the sole crypto asset with validated regulatory guidance. Perkins said memecoins belong to the commodity category and confirmed that government laws prohibit their deceptive use.
A current research report by Traders Union reveals that nearly all nations globally do not regulate memecoins which creates a legally undefined situation. Criminal misuse activities need to be punished even though there is no established legal framework for LIBRA. He urged the Justice Department to expand its efforts to fight illegal crypto activities such as wire frauds and money laundering as well as market manipulation crimes.
The problems with LIBRA have restarted discussions about which group should oversee memecoins, between regulators taking stronger action or letting existing rules handle cheating in the market. The crypto industry demands clear rules from regulators because both market participants and investors need this help now.
“The Libra scandal is a terrible look for the crypto sector, but it is also a watershed moment. While clearly regulations would help, the crypto industry also needs to take the lead and fully ostracize these individuals. Then, the authorities should take the baton and prosecute them to the full ends of the law.”
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