The US Securities and Exchange Commission said it does not view Memecoins as security but warned any fraudulent tokens could still undergo actions of implementing other regulators.
The finance division of the corporation agency Says In the statement of Feb.
“As such, people who participate in the offer and sale of coin meme do not have to register their transactions to the commission,” said SEC.
It added that consumers and memecoin holders could not protect us Security laws But said the fraudulent offer and sale of memecoins “may undergo the action of implementing or persecuted by other federal or state agencies.”
The SEC added that it shared its views “as part of an effort to provide more clarity on the application of federal security laws to crypto assets.”
US president Donald Trump has moved to Cull the regulation of the SEC regulation of the crypto space, looking to be good to one of his campaign promises. The agency launched a Crypto Task Force Last month to create a plot for digital ownership.
Trump and First Lady Melania Trump himself launched Memecoins a few days before they entered the White House on January 20, which sparked criticism From many Crypto commentators and some of Trump’s supporters.
Donald Trump’s Memecoin, official Trump (Trump), dropped nearly 83% from its climax, while Melania Trump’s token, Melania Meme (Melania), dropped 93.5% from high, According to In Co ringecko.
Trump’s Memecoin hit a peak of $ 73.43 a day before Trump assumed the office but now trading around $ 12.66. Source: Co ringecko
In its statement, the SEC said the memecoins were “usually limited or without the use or function” and “tend to experience significant volatility in market prices.”
It added a memecoin does not fit in “any of the common financial instruments that are specifically introduced in the sense of ‘security'” – such as stocks or bonds – because they do not provide yield or right to “future income, income, or ownership of a business.”
SEC says that a memecoin does not fit under the sense of a “investment contract” under determining security Howey Test – Defined as money invested in a common business, such as a business, where investors have the hope of benefiting from the efforts of others.
Related: Former CFTC attorney said the agency should take the lead in Memecoin regulations
“The offer and sale of meme coins are not involved in an investment in a business or it is also not carried out with a reasonable revenue expectation from the efforts of the entrepreneur or management of others,” the agency said.
“In other words, a meme coin is not itself a security.”
The SEC added that its statement does not apply to Memecoins which is inconsistent with the description of one, or any products labeled as a Memecoin in a bid to hide from security laws “by denying a product that otherwise develops a security.”
“The division will examine the economic facts of the particular transaction,” he said.
X Hall of Flame: Memecoins will die and Defi will rise again – Sasha Ivanov
