Regulators at the Center of the LIBRA Meme Coin Scandal
Date: 2025-02-20 Author: Gabriel Deangelo Categories: CRYPTO PAYMENTS
Coin Bureau co-founder Nick Pakrin told Cointelegraph that the responsibility for Pump & Dump schemes lies with regulators. In his opinion, the rapid growth of fraudulent tokens associated with famous personalities was a consequence of the lack of proper control by regulatory bodies such as the SEC.
“The meme coin market cannot exist in complete anarchy. Leaving it in the status of an unregulated territory is akin to creating ideal conditions for manipulation,” Pakrin emphasized.
The expert also added that the use of ICOs could partially solve the problem, but the SEC’s strict measures have effectively made this tool unavailable.
A similar position was expressed by Chainlink community member Zach Raines. He accused regulators of failing to regulate meme coins and pointed to corruption at the Securities and Exchange Commission under former Commissioner Gary Gensler. According to Raines, instead of helping the industry grow and create clear rules, Gensler only hindered crypto companies by pursuing lawsuits against them.
Traders Union analysts note that most countries do not yet have clear rules regarding meme coins. However, CoinFund President and former CFTC member Christopher Perkins argues that existing laws already apply to these tokens, albeit not in full.
At the same time, the team behind LIBRA was previously involved in the launch of another meme coin, MELANIA, associated with US First Lady Melania Trump.
