Regulators Blamed for LIBRA Memecoin Scandal
The controversy surrounding LIBRA, promoted by Argentine President Javier Milei, has sparked renewed debate among crypto experts about the regulation of memecoin markets.
Coin Bureau co-founder Nick Pakrin told Cointelegraph that regulators bear responsibility for Pump & Dump schemes. According to him, the surge in fraudulent coins linked to celebrities and politicians results from a regulatory vacuum created by agencies like the SEC.
“The ecosystem cannot regulate itself. Memecoins cannot remain an unregulated Wild West,” Pakrin emphasized.
The expert also noted that the fundraising model through ICO could have addressed the issue, but SEC measures have made this format nearly impossible.
Chainlink community member Zach Rynes stated that the current situation surrounding memecoins is a direct result of the historical failure and corruption of the Commission and former head Gary Gensler.
The current meta of memecoin grifting is a direct result of the historical failure and corruption of Gary Gensler’s SEC.
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,…
— Zach Rynes | CLG (@ChainLinkGod) February 17, 2025
He argued that instead of helping the crypto industry navigate a complex regulatory environment, Gensler engaged in “unfair prosecutions of the industry’s top players.”
According to an analysis by Traders Union, most jurisdictions have yet to develop specific rules for memecoins. However, CoinFund President and former CFTC member Christopher Perkins noted that meme tokens are already regulated under existing laws.
I’m still trying to make sense of the clown show ? surrounding $LIBRA over recent days…
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
— Christopher Perkins ??⚓️NYC (@perkinscr97) February 18, 2025
The team behind LIBRA is also linked to the launch of the memecoin for U.S. First Lady Melania Trump — MELANIA.
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