Meme coins are becoming very popular in the crypto world. They are fun, unpredictable, and often linked to internet trends or celebrities. But do they count as securities? Hester Peirce, head of the SEC’s crypto task force, says they probably do not.
In an interview with Bloomberg, Peirce was asked about Donald Trump and his wife, Melania, launching their own Solana meme coins, TRUMP and MELANIA. She said these types of coins likely do not fall under SEC regulation.
“Many people are launching meme coins right now,” Peirce said. “But most of them probably don’t belong under the SEC’s current rules.”
This suggests the SEC may not be as strict on meme coins as it was before. Under President Biden, the SEC sued several crypto firms for selling unregistered securities. Peirce, however, is taking a different approach.
The SEC has said that memecoins are not securities
This is a complete 180 from Gary Gensler, who tried to say every cryptocurrency was a security
Memecoins are collectibles, which is extremely bullish for the meme space & solana
— borovik (@3orovik) February 11, 2025
Hester Peirce Comments: If Not SEC, Who Will Regulate Meme Coins?
If the SEC does not regulate meme coins, who will? Peirce suggested that Congress or the Commodity Futures Trading Commission (CFTC) could step in. She said current laws do not classify meme coins as securities.
Some experts worry that leaving meme coins unregulated could hurt the industry. They argue that these tokens encourage risky trading, especially for beginners. Instead of supporting solid crypto projects, money flows into short-term speculation.
The SEC’s stance that meme coins aren’t securities is a big shift from Gensler’s previous hardline view, making it bullish for the meme ecosystem. However, the market hasn’t reacted much, likely because it was expected, regulatory uncertainty remains, and overall market conditions are shaky.
Memecoins, being risk-on assets, need stronger sentiment or a broader rally to surge. For now, the market remains cautious despite the regulatory clarity.
Meme coins are digital tokens based on jokes, trends, or famous people. Unlike Bitcoin or Ethereum, they often have no strong technical foundation. Their value can rise or fall quickly. Some traders make huge profits, while others lose money when the hype fades.
For example, TRUMP coin peaked at $73 before Trump’s inauguration. Since then, it has fallen by almost 80% to about $15.36. And it’s not looking good.
Trump, Crypto, and the Future of Regulation: Will Meme Coins Thrive or Fall Into Further Chaos?
Under Biden, Bitcoin was the only crypto clearly labeled as a commodity. Most other tokens were considered securities. But this could change under Trump. The recent approval of an Ethereum ETF suggests that more crypto may be treated as commodities instead.
Many crypto investors think Peirce’s stance is good for meme coins. Others warn that scams and big losses could become more common without regulation.
Meme coins are a fast-moving part of crypto. Some traders love them, while others see them as risky. Hester Peirce believes the SEC will not regulate them heavily. But that does not mean they are safe.
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