Current regulations allow memes to flourish, while actual projects are shut down. Chris Dixon suggests better rather than less regulation for cryptocurrencies. The Meme Coin was put down after Dixon’s article.
Chris Dixon, general partner at cryptocurrency fund A16z and author of Read & Write Yourself, wrote in an article Monday about the growing regulatory action against cryptocurrency projects, noting that cryptocurrency regulations should not prioritize memes over substance. Many meme coins suffer losses after the article is published.
Read also: Solana, Base and AI meme coins rise, are speculative tokens making a comeback?
Regulations favor coins
With the continued proliferation of lawsuits against cryptocurrency regulators, concerns over government regulations have increased dramatically, causing much concern about the future of cryptocurrencies in the United States.
In his post, Chris Dixon highlights the absurdity of this US regulatory system, explaining how only tokens are allowed to flourish. Meanwhile, cryptocurrency companies and blockchain solutions face constant attacks.
He believes that the role of the SEC “is to protect investors; maintain fair, orderly, and efficient markets, and facilitate capital formation.” Dixon decries the SEC’s failure to implement its goals, especially regarding digital assets.
“Current regulations encourage platforms to list cryptocurrencies and not other more useful tokens that allow individuals and communities to own online platforms and services,” Dixon said.
Read more: Meme craze returns after Bitcoin halving ends
Mime coins are allowed to spread freely in the markets without any regulations against them, however “they are facing more innovative projects.”
After Dixon’s article was published, several meme currencies suffered losses, with Dogecoin (DOGE), Shiba Inu (SHIBA), Pepe (PEPE), dogwifhat (WIF), Bonk (BONK), and Floki Inu (FLOKI) all falling by more than 4 %.
Dixon’s article follows a response from A16z CTO Eddie Lazarin, who recently claimed that memcoins resemble a “risky casino” in response to X’s post.
Interest in meme coins will come and go, and I’m optimistic that real products/protocols will eventually develop.
But we shouldn’t pretend that the casino doesn’t hold us back. Deterring great founders and giving ammunition to politicized organizers has a profound effect. https://t.co/PZNjnSLqfb
— Eddie Lazarin (@eddylazzarin) April 24, 2024
According to Dixon, the solution is not to reduce regulations on cryptocurrencies, but to create better ones. He suggested “… adding well-designed disclosures to provide regular investors with more information.”
Read also: XRP rises as Ripple slams SEC for sanctions, asks regulator to determine potential for future violations
He also suggests regulators “require extended closing periods to prevent get-rich-quick schemes.”
Several cryptocurrency institutions, including Uniswap, Coinbase, Ripple, and Consensys, are currently locked in legal battles with the Securities and Exchange Commission.