Key Insights:
- Dogecoin’s similarities with Bitcoin could make it difficult for the SEC to regulate as a security.
- The Dogecoin Foundation board member believes the cryptocurrency could break into the top three.
- The regulatory landscape around cryptocurrencies is constantly evolving, making it difficult to predict future actions by the SEC.
During the celebration of the 4/20 Dogecoin [DOGE] Day, Fox Business interviewed with Marshall Hyner, a board member of the Dogecoin Foundation who has been associated with the organization since 2013. Hyner claimed that the U.S. Securities and Exchange Commission (SEC) could not target the meme-inspired cryptocurrency, Dogecoin.
DOGE’s similarity to BTC circumvents SEC
In his explanation, he highlighted that Dogecoin (DOGE) shares similarities with Bitcoin (BTC), making it ineligible for security classification. Additionally, he noted that DOGE’s community-driven nature and decentralized structure might have aided in avoiding the regulatory jurisdiction of the U.S. Securities and Exchange Commission (SEC).
Hyner expressed his dissatisfaction with the U.S. regulator’s enforcement approach and called for the SEC to establish policies to facilitate oversight and ensure the survival of cryptocurrency projects. He added that although some groups may build centralized companies, this should not indicate that a cryptocurrency is not decentralized.
There has yet to be an official statement from the SEC about Dogecoin, and whether the regulatory agency will undertake any measures against the cryptocurrency remains to be seen.
It is worth noting that the SEC has predominantly directed its regulatory efforts towards initial coin offerings (ICOs) and cryptocurrencies categorized as securities. Conversely, Dogecoin was not introduced via an ICO nor advertised as an investment prospect.
For those who may not be familiar, an ICO is a type of fundraising event where a new cryptocurrency or token is sold to investors with the expectation that the asset’s value will increase.
DOGE’s unexpected path to success
According to Hyner, the development team didn’t expect DOGE to rank among the top 10 cryptocurrencies by market capitalization. However, he is now optimistic that DOGE has the potential to break into the top three due to the unstoppable power of the meme.
The current market cap for Dogecoin is $10.98 billion, which marks an 11.89% decrease from the previous press time. Achieving a top-three rank would be challenging, given the significant gap between the eighth-ranked cryptocurrency and Tether, which holds the third spot.
The drop in prices and decreasing circulation of the coin were reflected in its recent performance. However, the social dominance of DOGE has experienced a contrary trend since 4/20, as evidenced by a 4.87% increase in the metric that measures social discussions about the asset at the time of writing.
As a result, the celebration of Dogecoin Day sparked numerous discussions regarding the cryptocurrency. Despite being a well-known supporter of Dogecoin, the CEO of Twitter, Elon Musk, did not actively promote the meme on the specific date, as his attention was directed towards the Starship launch.
One must remember that digital currencies’ regulatory environment is in continuous flux, making it challenging to anticipate how regulatory bodies like the SEC will handle cryptocurrencies such as Dogecoin going forward.
