Industry leaders are pointing to the correlation between the rise of meme cryptocurrencies and the staunch regulatory approach from the U.S. Securities and Exchange Commission (SEC).
Industry leaders are pointing to the correlation between the rise of meme cryptocurrencies and the staunch regulatory approach from the U.S. Securities and Exchange Commission (SEC). Some argue that the current explosion in meme coins may be more than just speculative fever—it could be a form of digital protest against the increasing regulatory constraints.
Columbia Business School professor Omid Malekan weighed in, saying the phenomenon constitutes a form of "economic populism" in response to the present regulatory environment. Nic Carter, founder of Castle Island Ventures, echoed this sentiment, saying the uptick in speculative assets was due directly to what he described as an "oppressive SEC regime."
This is especially timely, as betting markets give the chances of a Republican victory at 50% in the elections. Such a political turn of events might dramatically change the crypto landscape, with the return of global token launches and airdrops—and, consequently, lower the appeal of meme coins.
They pointed out that some regulatory measures, such as geographical restrictions and VPN banning, have actually spurred investors into embracing these unconventional crypto assets. On the other hand, presumed regulatory changes are unlikely to get rid of these kinds of meme coins completely.
Carter suggested that there will always be some baseline level of interest in meme coins, and while regulatory reform might reduce their popularity, it wouldn’t make them disappear from view.
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