In 2024, Meme coins became one of the most traded and discussed aspects in the Cryptocurrency sector. Critics argue that they give the industry a bad image. Other people enjoy gambling adventures and, sometimes, mind-bogling returns. If and when the US government takes steps to regulate this controversial industry, what will the result look like?
When the Crypto sector earned the Monin “Wild West”, Meme coin was convicted. Thousands of new tokens are made daily through platforms such as pumps. Investors – a mixture of retail traders, internal formulas, affected, and sometimes institutional players – all expect to receive an unexpected jackpot.
Meme -coin opponents also blamed the space for distraction from high quality projects in the Crypto region. For example, the pre-integration launch of the official Trump (Trump) token reflects this trend.
Crypto researcher Angela Walch, “Crypto sector kept someone in power, whose first task is to take advantage of the opportunity for Crypto and take advantage of the Crypto,” told Time. “And it’s just shameful.”
Meme coins and mashing of politics are not exclusive to the US in Argentina, President Xavier Milli promoted Libra tokens, which increased to $ 4.50 before the price falls.
Lynn Alden Investment Strategy founder Lin Alden, put it in January: “The same recession [traditional finance] Mostly unrelated ICOs, defi and NFTs that dismiss bitcoin accounts will now dismiss it due to the coins of the meme. ,
Democrats speak
On 27 February, Meme coins were marked with two important events in the location. First, the American Securities and Exchange Commission (SEC) said that Securities Rules would not follow meme coins.
Second, the Democrats’ Mem Act proposal aims to prevent American authorities from launching their own meme coins, as Trump made before the inauguration. Are these incidents conflicting, and are meme coins so problematic? Let’s break it.
The official trump token launch was controversial. Some saw it as a bold signal from the then presidential election that he was ready to embrace Crypto. However, many people of the Crypto community instigated the move as a “Crift”, given the fall in value within a few days.
the new York Times Name Over 800,000 people invested in Trump’s coin collectively lost $ 2 billion.
Another important point of criticism was that the official Trump token could line up the pocket of the trump. Foreign political actor can buy trump tokens in bulk and bribe them easily (Trump signed executive Order Freezing enforcement of foreign corrupt practices Act).
Various democratic representatives are speaking. California Democrat Rape Sam Licensecardo introduced a bill with the aim of preventing US authorities from making tokens. Licensecardo stressed that Trump’s meme coin “enhances concerns about transparency, insider trading and inappropriate foreign influences.”
Bill, which is being named modern eloluments and malfeasance enforcement, or Meme -actNow only exists as a draft. The Act is ready to prevent Potus, Congress members and other top officials and members of their families from starting cryptocurrency.
More than this, the bill will prevent them from releasing or sponsoring both securities and objects. The profits generated through the official trump token by Trump should be hate.
Although the licensecardo does not think that the Republican-controlled House of Representatives will now support the bill, it believes that this may happen later when “Trump’s creed” starts down and more Republicans will be against him. The same week, it is known that the Trump family is going to create a branded metavors that would include NFT Marketplace.
Was Jensor very easy on the coin of meme?
Critics of the Biden-Eugration Crypto policies shared an approach that SEC, led by Gary Gensor, had deliberately ignored harmful meme coins while hunting legitimate crypto brands such as Ripple and Coinbase.
This principle shows that the government agencies did not go after the rich mem coin market as it works as a boogieman to turn people against cryptocurrency. People were investing in Meme coins and losing money. It was creating a favorable background for SEC and served as a good excuse to suppress valid crypto projects.
Second stays away, but warns volatility
While the Gensor-era second was criticized for the continuous equal to the cryptocurrency for unregistered securities, effectively excluded them, crypto-friendly Hester Peerus-era refused to step into, when more than $ 2 billion was more than $ 810,000.
Peerce indicated that SEC is not responsible for dealing with meme coins, as they are not classified as securities.
On 27 February, SEC clarified its stand by giving verdict Mem coins are not securities And more similar for collection. Therefore, it cannot be regulated by SEC and people launching meme coins do not need to register them as securities.
The statement warns about the volatility of the significant market value of the meme coins, given that this disclaimer is usually present in the description of the meme coins. This decision gives green lights to make more meme coins in future.
Although the new SEC meme coin stays away from regulating the location, there are signs of crisis in the region. The 2024 was one of the main centers of the Meme coin revolution. Fun, a solana-based launchpad acts an imgflip (a platform known to make memes and gifs) for crypto.
The token on the pump is 80%below. Some decline this decline in controversial Libra coins. However, tariff war affecting BTC value can be another powerful factor.
Meme coins are often compared to events such as an ICO boom or a NFT boom, which means that the dust will freeze and the market will be reorganized.
Vitallic Butterin said that the Downsides of the ICO era were addressed through DEFI solutions. Mem coin market can also mature.
