SEC Commissioner Hester Peirce discusses the inadequacies of current regulations regarding memecoins and comments on changes in the SEC’s approach to the cryptocurrency market.
Role of Memecoins in Current Regulation
Hester Peirce claims that most memecoins do not fall under SEC's jurisdiction under the current regulations. She suggests that existing laws were developed without accounting for the characteristics of such assets. Peirce also believes that strict regulatory conditions have deterred some crypto projects.
Changes in SEC's Approach to Crypto
Hester Peirce, leading the SEC's crypto task force, is steering towards creating clearer rules for tokens. The recent organizational shifts within SEC indicate a softening stance on crypto regulations, confirmed by reports of reassigning lawyers from the division.
Political Movements and Impact on Crypto Market
The launch of memecoins by Donald and Melania Trump on Solana marks the political shift affecting the crypto market. Peirce emphasizes the need to consider circumstances, especially with Trump supporting crypto initiatives. As the $TRUMP token experiences significant price swings, memecoins face controversies due to fraud allegations and inherent volatility risks.
Hester Peirce’s perspectives highlight the need to rethink regulatory approaches to cryptocurrencies and memecoins, elucidating the influence of political and legal changes in this evolving sector.
