Chris Dixon, founder of a16z crypto, in a podcast interview with unchained, blamed the policymakers and crypto regulation for the surge observed in memecoins back in 2024. Chris also pointed out that many serious projects struggled under regulatory scrutiny whereas, memecoins thrived.
Why did memecoins have such a wild year in 2024? 🎢@cdixon blames policymakers for blocking innovation ⛔️🚫
“When the serious stuff gets blocked, you’re left with frivolous stuff like memecoins.” 🤡
Listen now: https://t.co/BFr7idYcvN pic.twitter.com/cK0qCBPnCq— Unchained (@Unchained_pod) January 29, 2025
The Regulatory Push that Fueled the Memecoin Frenzy
Crypto investor Chris Dixon pointed out that the policymakers have played a very important role in shaping the current situation of the crypto market. Dixon argued that the current crypto policies hindered meaningful innovation in the digital asset space and only frivolous assets such as the memecoins could flourish without any restrictions from the policymakers.
After the clip of this video was ed by unchained, Mark Jeffery, a well-known crypto enthusiast responded to this post and let out his take on the topic. Jeffery pointed out that under the leadership of Gary Gensler, former chair of the U.S. Securities and Exchange Commission, had a crack down on all the major digital assets and only memecoins were marked as safe since they were untouched by the SEC and not categorized as a security. This led to their widespread popularity and adoption within the crypto space.
Survival of the Silliest: How Memecoins Took Over
Jeffery in his post indicates that due such regulatory policies, the outcome that was received was opposite of what was expected. Instead of innovation paving path for the entire industry, crackdown on the cryptocurrencies and related companies left a void in the industry which was filled by speculation-driven assets with very little real-world utility.
A Call for Policy Change
With the new istration at the White House, it is evident that these policies will be reviewed and amended as needed. Jeffery expressed his hopes that figures such as David Sacks and President Donald Trump may address these issues and create a balanced regulatory framework.
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