In response to the Securities and Exchange Commission's (SEC) increasing regulatory scrutiny of the cryptocurrency industry, a small group of community members has launched a decentralized anti-SEC memecoin called NotWifGary (NWG) on May 16.

The NWG project takes an anti-SEC and pro-Ethereum stance, aiming to rally support for open-source developers and the broader Ethereum ecosystem in the face of what its creators perceive as unjust regulatory pressure.

Heightened Regulatory Scrutiny Spurs Creation of NWG

The creation of NWG comes amid heightened regulatory focus on crypto, particularly from figures such as SEC Chair Gary Gensler. The anti-SEC memecoin is part of a movement to counter what its creators view as unwarranted regulatory pressure on the crypto industry.

Marco Monaco, a member of the NWG initiative, clarified that the project is entirely separate from Linea and Consensys, despite his involvement with the zkEVM ecosystem Linea. He emphasized that his participation in the project is personal and not tied to his official role.

NWG's official account on X (formerly Twitter) announced the project's stance against Gary Gensler and the SEC, accusing them of unlawfully threatening digital property by attacking Ethereum and open-source developers.

Decentralized Launch and Fair Distribution Strategy

NWG will be categorized as a CultureCoin and launched in a highly decentralized manner with a fair launch strategy. The 12 original project supporters, publicly known individuals, plan to deploy 100% of the token allocation in a liquidity pool.

The token will be launched on Linea as an ERC20 token, managed through a multi-sig wallet involving the original project supporters. The liquidity pool for NWG will be bootstrapped through community donations, ensuring decentralization and fairness. Donations will not entitle contributors to NWG tokens but will earn them the "$NWG Launch Team" Soulbound Token (SBT).

SEC Faces Backlash for Stringent Stance on Crypto

The launch of NWG coincides with growing criticism of the SEC's regulatory actions in the crypto space. Democratic Representative Wiley Nickel expressed concerns that the SEC's actions are turning crypto into a political issue, forcing President Biden to take sides.

Amidst rumors of SEC Chairman Gary Gensler potentially resigning, Kraken has urged the US court to dismiss the SEC's claims against it. Kraken argues that the SEC's broad interpretation of its jurisdiction, primarily through the Howey test, would unnecessarily expand its authority beyond its mandate.

The launch of NWG and the ongoing regulatory debates highlight the complex dynamics between regulators and the crypto industry, with stakeholders on both sides advocating for their positions amidst evolving regulatory landscapes.