SEC regulations support meme coins over actual projects, says Chris Dixon

Source Fxstreet
  • Current regulations allow meme coins to thrive, while actual projects are being shut down.
  • Chris Dixon suggests better regulations instead of fewer regulations on cryptocurrencies.
  • Meme coin category down following Dixon's article.

Chris Dixon, a general partner at crypto fund A16z and author of Read Write Own, wrote in an article on Monday about the growing regulatory actions against crypto projects, stating that crypto regulations must not prioritize memes over matter. Several meme coins are experiencing losses following the article’s publication. 

Also read: Solana, Base and AI meme coins rally, are speculative tokens making a comeback?

Regulations favor meme coins

With the continuous spread of lawsuits against crypto bodies, concerns about government regulations have greatly risen, causing much worry about the future of crypto in the US.

In his post, Chris Dixon highlights the absurdity of this US regulatory regime, stating how meme-only tokens are allowed to thrive. At the same time, crypto companies and blockchain solutions face continuous attacks.

He opines that the Securities & Exchange Commission's (SEC) "role is to protect investors; to maintain fair, orderly and efficient markets, and to facilitate capital formation." Dixon decries the SEC's failure to carry out its objectives, especially with digital assets.

"Current regulations encourage platforms to list meme coins and not other, more useful tokens that make it possible for individuals and communities to own internet platforms and services," said Dixon.

Read more: Meme coin madness returns after Bitcoin halving concludes

Meme coins are freely allowed to trend on markets without any regulations against them, yet "more innovative projects struggle."

Following the release of Dixon's article, several meme coins have taken in losses with Dogecoin (DOGE), Shiba Inu (SHIBA), Pepe (PEPE), dogwifhat (WIF), Bonk (BONK) and Floki Inu (FLOKI) all down more than 4%.

Dixon's article follows a response by Eddy Lazzarin, the CTO of A16z crypto, who recently alleged that memecoins are like "a risky casino" in reply to an X post.

According to Dixon, the solution isn't fewer regulations on cryptocurrencies but better ones. He suggested "...adding well-tailored disclosures to provide regular investors with more information."

Also read: XRP rallies as Ripple slams SEC for penalties, asks regulator to establish likelihood of future violations

He also suggests regulators should "require long lock-up periods to prevent get-rich-quick schemes."

Several crypto institutions, including Uniswap, Coinbase, Ripple and Consensys, are currently in legal battles with the SEC.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Forex Today: US Dollar benefits from risk-aversion ahead of mid-tier data releasesThe US Dollar (USD) gathered strength against its rivals on Tuesday as it attracted safe-haven flows.
Author  FXStreet
18 hours ago
The US Dollar (USD) gathered strength against its rivals on Tuesday as it attracted safe-haven flows.
placeholder
Coinbase launches futures on new index tied to Apple, Microsoft, Nvidia, Tesla, and BlackRockCoinbase is launching a new futures contract that will track the price of both U.S. tech stocks and crypto ETFs in a single product.
Author  Cryptopolitan
18 hours ago
Coinbase is launching a new futures contract that will track the price of both U.S. tech stocks and crypto ETFs in a single product.
placeholder
EUR/USD dips further against a firmer US Dollar on renewed debt fearsThe EUR/USD pair is heading south for the second consecutive day on Wednesday, trading at 1.1620 at the time of writing.
Author  FXStreet
17 hours ago
The EUR/USD pair is heading south for the second consecutive day on Wednesday, trading at 1.1620 at the time of writing.
placeholder
Silver Price Forecast: XAG/USD marks fresh 14-year highs near $41.00Silver price (XAG/USD) following its six-day winning streak, trading around $40.98 per troy ounce on Wednesday, the highest since September 2011.
Author  FXStreet
16 hours ago
Silver price (XAG/USD) following its six-day winning streak, trading around $40.98 per troy ounce on Wednesday, the highest since September 2011.
placeholder
Wall Street Giants Poised to Offer Spot Bitcoin and Ethereum TradingThe Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) alluded to major exchanges being able to roll out spot Bitcoin (BTC) and Ethereum (ETH) trading.
Author  Beincrypto
15 hours ago
The Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) alluded to major exchanges being able to roll out spot Bitcoin (BTC) and Ethereum (ETH) trading.
goTop
quote