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.
Industry experts, including ETF Store president Nate Geraci, agree, viewing memecoins as speculative and comparable to trends like ICOs or NFTs.
Despite a recent downturn in the broader cryptocurrency market, Ethereum investors seem to be seizing the opportunity, with a significant increase in large-scale buying.
The cryptocurrency market appears to be moving in a new direction, with attention shifting from highly speculative memecoins to established layer-1 networks.
Blockchain data has revealed a major crypto whale incurring heavy losses on the Ethena (ENA) token.
Economist Alex Krüger believes Bitcoin’s bull run still has room to grow, even as investors grow impatient with its slower pace compared to previous cycles.