Dixon criticized the increasing strictness of regulations imposed by authorities, particularly the US Securities and Exchange Commission (SEC), which has been targeting cryptocurrency companies for allegedly trading unregistered securities. This, according to Dixon, poses a serious threat to the future of cryptocurrencies in the United States.
“The current regulatory framework in the US is highly flawed as it primarily enables meme tokens to thrive, while putting immense pressure on prominent blockchain companies. Rather than encouraging the development of more useful crypto assets, the existing regulations incentivize platforms to focus solely on memcoins, allowing them to be freely traded without restrictions,” Dixon stressed.
He reminded that the SEC’s primary responsibilities are to safeguard investors, ensure market fairness and efficiency, and foster capital formation. Yet, Dixon argues that the regulator is failing in these duties, particularly when it comes to digital assets. He suggests that the solution lies not in reducing regulations for crypto companies, but in a more comprehensive approach that provides detailed guidelines and recommendations. Dixon also proposed extending the lock-up periods to counteract the proliferation of get-rich-quick schemes in the cryptocurrency space.
Recently, Eddy Lazzarin, the Chief Technology Officer of venture capital firm Andreessen Horowitz, equated memcoins with gambling, asserting that these tokens tarnish the reputation of both blockchain technology and cryptocurrencies.