Outside Source
Once dismissed as gimmicks, meme coins are now backed by influential figures and even state-led initiatives.
However, while adoption surges, regulatory oversight remains absent.
The Regulatory Debate Continues
According to the US Securities and Exchange Commission (SEC) Commissioner Hester Peirce, many of the meme coins in the market today do not come under the regulatory scope of the securities agency. While admitting that “facts and circumstances matter,” Peirce, in a recent interview with Bloomberg,
“Many of the meme coins out there probably do not have a home in the SEC under our current set of regulations. If Congress wants to address, they can do that; maybe something that the CFTC wants to address, but many of those, I think, probably are not under our jurisdiction.”
Peirce, often referred to as “Crypto Mom,” was recently appointed to lead the SEC’s new crypto-focused task force.
The latest comments are in line with Silicon Valley veteran and the new AI and crypto czar under Trump, David Sacks’ recent statement wherein he categorized NFTs and meme coins as collectibles while comparing them to memorabilia with cultural and commemorative value. He explained that while digital assets vary widely, these tokens fit within the collectible category rather than being classified as securities or commodities.
However, regulatory concerns persist, as figures like Senator Elizabeth Warren call for investigations into meme coins linked to political figures. Critics, including Mark Cuban and Balaji Srinivasan, had too warned that such assets could harm the crypto industry’s reputation without proper regulations amidst a spike in interest in meme coins.
Alarm on Meme Coins
Just three days before taking office, the incoming US president introduced Official Trump (TRUMP), a meme coin aimed at fans and speculators hoping for price surges. Initially soaring from $7 to $75 within a day, TRUMP later dropped to around $40 – coinciding with the launch of Official Melania (MELANIA) by the first lady.
Even the Detroit-based pastor leading the inauguration ceremony, Lorenzo Sewell, joined the trend, endorsing his own meme coin. Currently, TRUMP trades above $15, while MELANIA sits at $1.42.
Additionally, the Central African Republic (CAR) President Faustin-Archange Touadéra also announced the launch of the CAR token. While the project gained rapid traction, an investor reportedly turned $5,000 into over $12 million within hours. However, concerns over its legitimacy quickly surfaced.
Analysts noted inconsistencies, including AI-detection tools flagging the president’s announcement video and the project’s domain being suspended by Namecheap. Skeptics even went on to point out potential manipulation, as reports of developers allegedly altering the contract to retain millions in tokens emerged.
This article first appeared at CryptoPotato
