The scandal surrounding LIBRA, promoted by Argentine President Javier Milei, has reignited debates among crypto experts regarding the regulation of meme coins.
Coin Bureau co-founder Nick Pakrin told Cointelegraph that regulators are responsible for pump-and-dump schemes. He argued that the surge in fraudulent tokens linked to celebrities and politicians is a result of a regulatory vacuum caused by the lack of oversight from agencies like the SEC.
“The ecosystem cannot regulate itself. Meme coins cannot remain an unregulated Wild West,” Pakrin emphasized.
He also noted that the ICO funding model could have addressed the issue, but SEC measures have made it nearly impossible.
Chainlink community member Zak Rains stated that the current meme coin situation is a direct result of historical regulatory failures and corruption within the Commission, particularly under former SEC Chairman Gary Gensler.
The current meta of memecoin grifting is a direct result of the historical failure and corruption of Gary Gensler's SEC.
— Zach Rynes | CLG (@ChainLinkGod) February 17, 2025
Over his four year tenure as Chairman of the U.S. SEC, Gensler had the opportunity to establish clear rules and regulations regarding the issuance, custody,…
According to him, instead of helping the crypto industry navigate complex regulations, Gensler engaged in “unfair lawsuits against the best players in the sector.”
An analysis by Traders Union indicates that most jurisdictions have yet to establish specific rules for meme coins. However, CoinFund president and former CFTC member Christopher Perkins noted that meme tokens are already covered under existing laws.
I'm still trying to make sense of the clown show 🤡 surrounding $LIBRA over recent days…
— Christopher Perkins 🦅🌎⚓️NYC (@perkinscr97) February 18, 2025
The good news is that memecoins are one of the few crypto assets that currently enjoy regulatory clarity. For the most part, they are commodities. As such, any ACTIVITIES involving… pic.twitter.com/HosHLPdZHM
Reminder: The team behind LIBRA was also involved in launching the meme coin MELANIA, associated with former U.S. First Lady Melania Trump.
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