The U.S. Securities and Commodities (SEC)’s Division of Corporation Finance is trying to clear the air on meme coins.
In a statement Thursday, the regulator said meme coins are not securities and akin to collectibles.
What are meme coins? Meme coins are cryptocurrencies typically based on internet trends, memes, characters or current events. They start with no inherent value, though their price can surge if there is a high demand. As a result, they are a highly volatile asset.
What the SEC statement means: By classifying meme coins as not securities, people who buy or sell meme coins are not required to register their transactions with the agency.
The agency says the statement is part of its broader efforts to “provide greater clarity on the application of the federal securities laws to crypto assets.”
The big picture: The crypto industry has long called for more clarity when it comes to regulations and definitions following years of confusion.
This statement marks one of the first clarifying actions from the SEC since Trump returned to the White House last month and is likely a hint of what’s to come.
Over on Capitol Hill, freshman Rep. Sam Liccardo (D-Calif.) is planning to introduce the “Modern Emoluments and Malfeasance Enforcement (MEME) Act” in hopes of stopping the “financial exploitation of the public by corrupt federal officeholders.”
The California Democrat pointed to Trump and first lady Melania Trump’s launch of meme coins shortly before the inauguration last month and the ethical concerns surrounding the coins.
The price of the $TRUMP meme coin is now 80 percent below its all-time high.
PLUS: The Hill’s Emily Brooks scooped former Rep. Blaine Luetkemeyer (R-Mo.) will lead the American Consumer & Investor Institute (ACII) as its chief executive officer.
ACII advocates for more consumer and investor access to financial markets and products, including in cryptocurrency, consumer banking and securities.
