SEC Member Hester Peirce Warns Investors About Memecoins
SEC member Hester Peirce, also known as Crypto Mom for her supportive stance on cryptocurrencies, has once again issued a cautionary statement regarding memecoins.
Her warning comes in light of recent events where a memecoin named LIBRA was exposed as a scam. Peirce emphasized that investors in memecoins are not afforded the same protections as traditional investments.
During a recent appearance on the Bankless podcast, Peirce reiterated her concerns, stating that investors in memecoins may not have any recourse if they suffer losses. She pointed out that memecoins may operate outside the purview of the SEC, leaving investors vulnerable.
Peirce stressed the importance of risk management for those involved in memecoin trading. She made it clear that investors should not rely on government intervention or financial assistance in the event of significant losses.
Highlighting the potential lack of SEC oversight in the memecoin market, Peirce urged investors to take responsibility for their own investment decisions.
“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.