SEC Commissioner Hester Peirce Clarifies Regulatory Stance on Meme Coins

SEC Commissioner Hester Peirce has clarified that meme coins, including those associated with public figures like Donald Trump, are not classified as securities under federal law. This designation exempts them from the traditional regulatory frameworks applied to securities, such as registration and disclosure requirements.

Key Points:

• Classification as Collectibles: The SEC views most meme coins as collectibles rather than securities, citing their lack of inherent utility, yield generation, or rights to future profits. This perspective aligns with the agency’s recent guidance that such digital assets are primarily driven by market demand and speculation.
• Regulatory Implications: By not classifying meme coins as securities, the SEC limits its oversight, potentially reducing investor protections. This approach has sparked debate among lawmakers and financial experts, especially given the speculative nature and volatility associated with these assets.
• Political and Ethical Concerns: The launch of the $TRUMP meme coin by President Donald Trump has raised ethical questions regarding conflicts of interest and potential exploitation of supporters. Critics argue that such ventures blur the lines between personal financial gain and public service responsibilities.

Commissioner Peirce’s statements reflect the SEC’s current position on meme coins, emphasizing a hands-off regulatory approach. However, the broader implications for investor protection and market integrity continue to be subjects of ongoing discussion.

For more details, read the full article on CNBC: Trump and other meme coins won’t be protected by SEC, Hester Peirce says.