So, SEC Commissioner Hester Peirce just mentioned that the $TRUMP coin doesn’t fall under SEC regulations. This meme coin, mainly run by folks linked to the Trump family, skyrocketed and then tanked just days after it dropped, and now it’s getting some heat from Democratic lawmakers. Seems like regulators are easing up on those strict Biden-era rules, hinting at a more crypto-friendly vibe coming from Washington.
What are they if they are not securities?
They said people should buy at their own risk but still they have to be regulated. If SEC does not regulate them, then who is going to regulate them?
It's probably something like baseball cards. Some baseball cards are very expensive in the US, but their price depends on the demand in the market.
Who regulates this market in the US?
Previously, SEC considered all coins as security, except for Bitcoin. It is very good that now SEC is starting to draw the right conclusions.
I'm just wondering what made them to change this decision since up until now, I used to think that these meme coins were protected by the SEC because they are securities Is it because they feel that this meme coin of Trump's could be a sort of back door for foreign and corporate interests who seek to get access to him and as such are trying to avoid some individuals taking advantage?
It's not really clear to me why there's so much need to clarify that meme coins are not securities and that people who invest are doing so at their own risk should things go south.
Shit?? I guess SEC officials do not want to get their hands dirty. I think they should call in Janitors to clean this place!
Ideally memecoins should not just be regulated but also banned completely. These are nothing related to innovation, nor any utility. These coins shouldn't exist.
I think that this is a small market for SEC and this market is very difficult to regulate.
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https://natlawreview.com/article/sec-clarifies-stance-most-meme-coins-not-subject-securities-regulation
Although individual meme coins may have unique features, meme coins the SEC is unlikely to regulate may have some or all of the following common features, according to the statement:
"the coins will be purchased for entertainment, social interaction, and cultural purposes;
market demand and speculation primarily drive meme coin value, similar to collectibles;
meme coins typically have limited or no use or functionality;
given their speculative nature, meme coins tend to experience significant market price volatility;
statements regarding their risks and lack of utility other than for entertainment or other non-functional purposes often accompany meme coins.
The SEC staff analyzed the features of a typical meme coin under the Howey test the SECs fundamental framework for whether a crypto asset is an investment contract. The Howey test determines if certain arrangements or instruments are investment contracts based on their economic realities.
The statement included the following elements and conclusions with respect to the Howey test:
A meme coin purchaser will generally not be making an investment in an enterprise. That is, promoters do not pool their funds are together for developing the coin or a related enterprise.
Second, any expectation of profits that meme coin purchasers have is not derived from the efforts of others, but rather from speculative trading, like a collectible such as a baseball card.
Finally, the promoters of meme coin projects are not likely undertaking managerial and entrepreneurial efforts from which purchasers could reasonably expect profit."
Along these lines, Trumpolini's son made an interesting statement regarding the $TRUMP meme coin https://www.cnbc.com/2025/06/03/donald-trump-jr-meme-coin.html Basically says, 'Wasn't me..." Good read about the rise & fall of that crapcoin - and just *who* is making a fortune from it.
Love the bit about banks not returning their calls
Very funny old stuff. The world's bankers stopped giving the Trump family money, and now Trump has decided to issue his own stablecoin USD1.
https://www.worldlibertyfinancial.com/
Evil tongues say that Donald Trump likes to make money on everything, but I can't comment on that.
On the one hand, new stablecoins give more freedom, but on the other hand, we get very strict regulation