In the ever-evolving landscape of cryptocurrency, a curious and concerning trend has emerged. Recent reports from blockchain experts ZachXBT and Taylor Monahan suggest that crypto scammers have gained newfound confidence. The reason? A combination of U.S. regulators easing off crypto-related court cases and politicians throwing their weight behind memecoins. This development, as of June 2025, is stirring unease in the crypto community, raising alarm bells over a potential “crime supercycle” in the digital currency world.
The Regulatory Retreat
Let’s get to the heart of the matter. It appears that U.S. regulatory bodies have taken a step back, letting several high-profile crypto cases fall by the wayside. This perceived laissez-faire approach is causing ripples. According to Monahan, this regulatory leniency is like “leaving the gates open” for malicious actors to exploit the system. Scammers, who previously might have hesitated, are now emboldened, sensing an opportunity to swoop in and profit from the regulatory vacuum. This trend is reminiscent of the recent developments where Trump’s SEC is ending crypto lawsuits and investigations, highlighting a broader shift in regulatory focus.
The Securities and Exchange Commission (SEC), which has historically been a formidable gatekeeper in the crypto arena, seems to be shifting gears. While the reasons for their recent inaction remain speculative, some insiders point to a strategic pivot towards more traditional financial malfeasance. This, however, leaves the crypto space vulnerable. “It’s like they’re focusing on the trees while missing the forest,” ZachXBT notes.
Memecoins: A Political Playground
Enter memecoins—those playful, internet-born tokens often associated with a mix of humor and hype. They’ve captured the imagination of the public, and, interestingly, politicians. It’s a peculiar mix: lawmakers who once viewed digital currencies with skepticism are now publicly championing these tokens. Why the change of heart? It might be the allure of connecting with a tech-savvy electorate or perhaps the potential financial windfall.
But this political endorsement isn’t without consequence. By backing memecoins, politicians inadvertently lend them legitimacy, muddying the waters for investors and regulators alike. The stakes are high. Memecoins, by their very nature, are volatile and susceptible to manipulation—a fact not lost on scammers keen to exploit the hype for quick gains. “It’s a classic case of style over substance,” says Monahan, warning that this could lead to disastrous financial outcomes for unsuspecting investors.
Historical Echoes and Future Fears
This isn’t the first time we’ve witnessed such dynamics. The crypto world has seen its fair share of booms and busts, driven by speculative fever and technological innovation. From the ICO frenzy in 2017 to the NFT explosion in 2021, the market’s history is peppered with moments of both triumph and trepidation. Yet, the current climate feels different. The combination of regulatory withdrawal and political endorsement of inherently unstable assets seems to set the stage for a perfect storm—or a “crime supercycle,” as some are calling it. For a deeper understanding of the regulatory challenges, see Crypto Advocacy Groups Urge Dismissal of Case Against Bitcoin Mixer Samourai.
Looking ahead, the questions are numerous and complex. Will regulatory bodies reassert their authority? Can the political establishment balance its newfound crypto enthusiasm with necessary oversight? And perhaps most importantly, will the market adapt to safeguard itself against these emergent threats?
The answers remain elusive, but one thing is clear: the cryptocurrency world is at a crossroads. As June unfolds, investors and regulators alike would do well to keep a watchful eye on the horizon. The landscape is shifting, unpredictably so, and the road ahead is anything but straightforward.
Source
This article is based on: Politicians’ memecoins, dropped court cases fuel crypto ‘crime supercycle’
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
