SEC Clarifies Memecoins, Including Trump Tokens, Fall Outside Its Jurisdiction

The SEC has clarified that most memecoins, including tokens like the Trump (TRUMP) and Melania Trump (MELANIA) coins, do not fall under its regulatory oversight.

Commissioner Hester Peirce explained that such assets, largely driven by internet culture and celebrity endorsements, don’t align with the commission’s current remit.

This comes amid a steep decline in the TRUMP token’s value, with investors losing $2 billion since its launch in January. Despite the crash, the Trump Organization and its partners made significant profits from trading fees.

Peirce emphasized that other government bodies, such as the CFTC or Congress, may need to step in to regulate these types of tokens, which are more comparable to collectibles than traditional crypto assets.

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Industry experts, including ETF Store president Nate Geraci, agree, viewing memecoins as speculative and comparable to trends like ICOs or NFTs.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.