SEC member Hester Peirce, known as Crypto Mom for her positive approach to cryptocurrencies, has warned again about memecoins.
This warning from Hester Peirce came on the same day that the memecoin called LIBRA was claimed to be a scam, while the SEC member stated that memecoin investors were not protected.
Speaking on the Bankless podcast recently, the SEC member warned memecoin investors that they are on their own if they experience losses, noting that memecoins may fall outside the jurisdiction of the federal regulatory agency.
Pointing out that memecoin investors should manage their risks well, Peirce said that they should not expect government protection or a bailout when they experience major losses.
Peirce reminded traders that memecoins may fall outside SEC oversight and called on them to take responsibility for their investments.
“Just because something is very popular doesn’t mean it falls under SEC jurisdiction.
So I would caution people not to expect the SEC to be the backbone behind everything…
I am a big believer in people having the freedom to spend their money however they want, but if we want to live in a place where people have choices, we must also accept the responsibility that comes with those choices.
People are having fun with memecoins and all sorts of other things, but that’s not the problem.
Don’t expect any reassurance from the SEC if prices fall.”
*This is not investment advice.
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