The SEC has clarified that most memecoins, including tokens like the Trump (TRUMP) and Melania Trump (MELANIA) coins, do not fall under its regulatory oversight.
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Commissioner Hester Peirce explained that such assets, largely driven by internet culture and celebrity endorsements, don’t align with the commission’s current remit. This comes amid a steep decline in the TRUMP token’s value, with investors losing $2 billion since its launch in January. Despite the crash, the Trump Organization and its partners made significant profits from trading fees.
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Peirce emphasized that other government bodies, such as the CFTC or Congress, may need to step in to regulate these types of tokens, which are more comparable to collectibles than traditional crypto assets.
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Industry experts, including ETF Store president Nate Geraci, agree, viewing memecoins as speculative and comparable to trends like ICOs or NFTs.
