SEC Clarifies Memecoins Not Classified as Securities

The US Securities and Exchange Commission (SEC) has officially stated that it does not consider memecoins as securities, classifying them more as collectibles.

As a result, transactions involving these coins do not require SEC registration. However, the agency warned that fraudulent memecoins could still be targeted by other regulatory authorities.

In a statement on February 27, the SEC clarified that memecoins do not meet the criteria of traditional securities, such as stocks or bonds, because they do not offer any investment yield or rights to a company’s future profits.

The SEC also emphasized that its position does not apply to tokens that could be disguised as memecoins to evade regulations.

This move comes as discussions around crypto regulations continue to evolve.

With the SEC’s Crypto Task Force under Commissioner Hester Peirce exploring new frameworks, memecoins may remain outside traditional securities oversight unless they are linked to fraudulent activity.