Key Points:

• SEC Commissioner Hester Peirce indicated that the SEC may not have the authority to regulate many of the memecoins present in the crypto market during a recent interview with Bloomberg.
• Peirce stated: “If people want to buy a token or product that lacks a clear long-term value proposition, they should feel free but should not be surprised some day if the price drops.”
  Translation: If individuals choose to purchase tokens without a well-defined future value, they should not be shocked if those prices decrease eventually.

The SEC likely doesn’t have the power to regulate numerous memecoins overwhelming the crypto market, according to Commissioner Hester Peirce in her recent comments.

Peirce emphasized that the classification of many memecoins doesn’t align with existing regulatory frameworks.

Context:

Memecoins, in contrast to established cryptocurrencies like Bitcoin and Ethereum, lack fundamental value. This has led to ongoing debates about their status as securities. Peirce’s perspective marks a departure from former SEC Chairman Gary Gensler’s approach, who argued that most crypto tokens, apart from Bitcoin, were indeed securities.

Further Reading: SEC Commissioner Hester Peirce Lays Out 10 Priorities For New Crypto Task Force