Technology
On Thursday, the Securities and Exchange Commission released guidance indicating that it does not classify most meme coins, which are cryptocurrency tokens derived from memes, as securities according to federal regulations in the United States.
This implies that,according to the SEC,individuals who buy or hold meme coins are not protected by federal securities laws,and those “who engage in the offering and sale of meme coins do not need to register their transactions with the Commission.”
The SEC’s new guidance comes about a month into U.S. President Donald trump’s second term when Trump issued an executive order to establish the Office of Government Efficiency led by Elon Musk—a separate advisory body named after Dogecoin.
President Trump also introduced a meme coin for his followers called $TRUMP just days before his inauguration. Since its peak on January 19th, this coin has lost $12 billion in value as reported by The Telegraph.
Mark Uyeda,appointed as SEC chairman by Trump in January,previously indicated he would ensure clear regulatory boundaries around cryptocurrencies. On Uyeda’s first day at work he announced the creation of a cryptocurrency task force.
Uyeda’s SEC contends that meme coins should not be classified as securities because they “do not produce a yield or confer rights to future earnings or assets of an enterprise.” Rather, the Commission perceives them more like collectibles.
Thursday’s guidance regarding meme coins marks a meaningful shift from how they were viewed under former chairman Gary Gensler. Gensler frequently advocated for crypto tokens—including meme coins—to be treated as securities and urged crypto service providers to register proactively with the SEC.
Additionally on Thursday ,theSEC declared itdismissed its lawsuit against Coinbase ,the largest cryptocurrency exchange in America . “For several years now ,theCommission ’s perspectives on crypto have been primarily conveyed through enforcement actions without engaging with stakeholders,” stated Uyeda in a statement .“It is time for us to amend our approach and develop crypto policy more transparently.”
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