The US Securities and Stock Exchange Commission (SEC) announced that the Memecoins did not enter their own regulation authority. Especially in the crypto currency market, which was moved by the introduction of Trump Coin, the arrangement discussions came up again. Second broker Hester Peirce stressed that the Memecoins did not enter the responsibility of SEC within the framework of the current legislation. This statement revealed different approaches about regulatory gaps and lack of control in the sector.
Unclear who is authorized on the memecoins
Second broker Hester Peirce said that the Memecoins were not under the authority of the SEC within the framework of the current regulation. Peirce said that such crypto currencies may be subject to a different legal framework and that the Congress or Commodity Futures Commission (CFTC) could make regulations on this issue.
Peirce’s statements once again revealed that memecoins experienced lack of legal control due to regulatory gaps. This has potential risks for both investors and regulators. Many events where investors were damaged have mobilized experts who argued that the scope of the regulations should be expanded.
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The complexity of authority and uncertainty, especially the newly released Memecoins made it easily manipulated. In this process, it is often emphasized that investors should approach such assets more cautiously.
Trump Coin launch and fluctuations in the market
The release of Trump Coin aroused great interest, while at the same time caused sudden price fluctuations in the market. Trump Coin, which increased rapidly within the first 24 hours, then experienced a harsh decline. According to Chainalysis data, approximately 1 million wallet holders were found to have lost a total of $ 3 billion of Australian dollars.
The Trump Organization has gained significant transaction fees from their agreements with stock exchanges in this process. However, these fluctuations, which brought great losses for investors, increased question marks on the reliability of Memecoins.
The Trump Coin example reveals how the volatility in the market can become uncontrolled due to the lack of arrangement of Memecoins. The risk of sudden fluctuations and price manipulation reveals the need for more regulation.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and perform their operations in line with their own research.
