Libra Token’s Collapse Sparks Calls for Stronger Memecoin Regulation

The collapse of Argentina's Libra token has reignited debates over the need for stronger regulatory frameworks around memecoins.

The token’s failure, widely attributed to a lack of oversight, has led industry figures like Nic Puckrin, CEO of Coin Bureau, to call out regulators for their inaction.

According to Puckrin, the rise of fraudulent memecoins is a direct result of gaps in regulation, particularly by authorities like the U.S. SEC, which has yet to define clear rules for these assets.

While some believe the SEC should step up, others argue that the responsibility should lie with Congress or the CFTC. However, Puckrin stresses that without regulation, the market will remain vulnerable to manipulation and unfair practices.

He draws parallels to the ICO boom, which collapsed after the SEC’s crackdown, warning that memecoins could face a similar fate if left unchecked.

There is some divergence of opinion, however. While Puckrin advocates for a proactive approach to memecoin regulation, other industry voices, such as CoinFund’s Christopher Perkins, suggest that memecoins already fall under existing commodity laws.

Perkins argues that fraudulent activities in this space are already illegal and don’t necessarily require new regulations. Still, with a lack of specific legal frameworks in many countries, memecoins are often left in a grey area, fueling concerns of potential exploitation in the absence of clear guidance.