Meme coins are not securities and are therefore not subject to federal laws that regulate financial instruments. Securities and Exchange Commission. The agency has released its official stance on meme coins, comparing them to collectibles because their value “derives from speculative trading and collective sentiment in the market.” Meme coins do not meet the legal definition of securities because they “have no right to generate income or convey future income, profit or business assets.” Those who buy them are also not considered investing in businesses, meaning they are not “investment contracts” classified as securities.
Therefore, those who sell and provide meme coins do not have to register their transactions in the committee under the Securities Act. Therefore, buyers are not protected by securities laws, although this does not mean that scammers can use them to deceive people without any impact. Under other federal and state laws, any fraudulent transaction involving meme coins can still be taken to enforce actions.
Since he took office, the Trump administration’s SEC has shown signs of being more friendly to the cryptocurrency industry. Just this month, the SEC agreed End the law enforcement case The allegation that Coinbase illegally operates an unregistered stock exchange. The committee also gave up Investigation of Robinwhich faces allegations of violating the securities laws and listing and selling of its cryptocurrencies.
Even if the committee does not regulate meme coins, it still says it will still evaluate the “economic reality” of the suspicious transactions they are involved in. Meme coins must be inspired by crypto assets, inspired by memes, characters, fashion events, current events or trends from the Internet, used for “entertainment, social interaction and cultural purposes” and their value-driven “entertainment, social interaction” and “driven” and “driven” demand and market demand. The committee wrote that they are usually “limited or without functionality or functionality” and “experienced significant market price fluctuations”. If this definition does not meet, crypto assets marked as “meme coins” will still be considered securities.
