SEC Declares Memecoins Lacking Regulation, Sparking Market Reactions – BitRss

The U.S. Securities and Exchange Commission (SEC) has announced that memecoins do not fall within its regulatory jurisdiction. This declaration has reignited discussions about cryptocurrency regulations, particularly in light of the recent launch of Trump Coin. SEC Commissioner Hester Peirce emphasized that memecoins are not under the SEC’s purview according to current legislation, highlighting various perspectives on regulatory gaps and the lack of oversight in the sector.

Ambiguity Over Authority on Memecoins

Commissioner Peirce indicated that memecoins may be subject to a different legal framework and that Congress or the Commodity Futures Trading Commission (CFTC) could potentially enact regulations. Her statements have once again brought to light the legal oversight deficiencies faced by memecoins due to regulatory loopholes, posing potential risks for both investors and regulators.

The confusion over authority has made newly launched memecoins particularly susceptible to manipulation, prompting calls for investors to approach these assets with caution.

Trump Coin Launch and Market Volatility

The launch of Trump Coin garnere…