The collapse of the LIBRA memecoin has reignited debate over the lack of regulation in the cryptocurrency industry. Promoted by Argentine President Javier Milei, the token skyrocketed before crashing, wiping out billions and triggering accusations of fraud. But according to Coin Bureau co-founder Nic Puckrin, the real blame lies with regulators who have left the memecoin space unchecked.
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In a statement to Cointelegraph, Puckrin argued, “The blame for the LIBRA memecoin disaster, and other pump-and-dump schemes like it, lies on the shoulders of the regulators, and they are the only ones that can fix this.” He warned that without oversight, “LIBRA will happen again and again.”
Regulators Struggle to Define Memecoin Oversight
The U.S. Securities and Exchange Commission (SEC) has largely distanced itself from memecoins, with SEC crypto task force head Hester Peirce stating that their regulation falls outside the agency’s purview. This leaves the industry in a legal gray area, allowing bad actors to launch and manipulate tokens without consequences.
Meanwhile, Christopher Perkins, CoinFund president and former CFTC member, argues that memecoins already have regulatory clarity as commodities, meaning fraud and manipulation are already illegal.
Will LIBRA Be the Turning Point?
Puckrin sees LIBRA as a “watershed moment” for crypto regulation. He urged the U.S. Department of Justice to step up enforcement against wire fraud, money laundering, and market manipulation. Until then, memecoins will remain the Wild West of crypto—unregulated, risky, and prone to disaster.
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