Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert
Zero fees, no slippage
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
Former CFTC attorney advocates for agency to oversee memecoins

Former CFTC attorney advocates for agency to oversee memecoins

GrafaGrafa2025/02/27 03:50
By:Mahathir Bayena

Elizabeth Davis, a former CFTC chief trial attorney, suggests the Commodity Futures Trading Commission is well-positioned to regulate memecoins as U.S. regulators debate who should oversee the sector.

Davis, now a partner at Davis Wright Tremaine, argues the CFTC’s focus on protecting market participants from fraud and manipulation makes it the appropriate authority.

This is especially relevant since retail investors are the most likely users of memecoins, according to her.

"There has been an increasing focus on retail market participants, and the CFTC is focused on protecting market participants from fraud and manipulation, and this would include the retail population who are the most likely to use memecoins," Davis stated.

Davis believes the CFTC's potential regulation of memecoins hinges on the broader regulatory framework for digital assets.

"If the CFTC gets jurisdiction over spot crypto — as the winds seem to be pointing toward — then I would say the chances are pretty good that memecoins would be included as well," she said.

She also expressed confidence that U.S. digital asset laws will likely encompass memecoins, clarifying regulation for the investing public.

The disagreement between the SEC and CFTC highlights the lack of a clear regulatory framework.

"The CFTC has taken an extremely expansive view of the definition of a commodity under the Commodity Exchange Act and has repeatedly extended it to encompass digital assets," Davis explained.

She added that memecoins would likely be viewed as digital assets falling under the CFTC's broad interpretation of a commodity and that the agency’s mandate would focus on preventing fraud or manipulation.

The debate arises amid concerns over investor losses and legal uncertainty, particularly following the launch of memecoins by figures like former U.S. President Donald Trump and the Libra (CRYPTO:LIBRA) token scandal involving Argentine President Javier Milei.

While the SEC's Hester Peirce has suggested memecoins may fall outside the agency's purview, Senator Elizabeth Warren and Representative Jack Auchincloss have raised concerns about ethics, consumer protection, and regulatory enforcement.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!