Hester Peirce Warns About Memecoins

SEC member Hester Peirce, known as “Crypto Mom” for her supportive stance on cryptocurrencies, has reiterated her warning regarding memecoins.

This caution from Peirce coincided with claims that the memecoin LIBRA is a scam, emphasizing that investors in memecoins lack protection.

In a recent appearance on the Bankless podcast, Peirce advised memecoin investors to be aware they are accountable for any losses, as memecoins may not fall under federal oversight.

Peirce emphasized the importance of risk management, stating that investors should not rely on government assistance or expect bailouts after significant losses.

She reminded traders that just because something is popular doesn’t mean it falls under SEC jurisdiction, urging 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.