SEC Is Backing Away from Memecoin Regulation – Here’s Why

The U.S. Securities and Exchange Commission has made it clear it will no longer involve itself in regulating memecoins—tokens often driven by internet culture, hype, and political branding.

Commissioner Hester Peirce, speaking at the Bitcoin 2025 conference in Las Vegas, confirmed the agency’s retreat from this fast-growing sector of crypto.

Peirce acknowledged the explosion of interest around memecoins but cautioned that anyone trading them should understand they’re on their own. “Don’t expect regulatory safeguards,” she said, underscoring that these assets lie outside the SEC’s scope—similar to how the agency distanced itself from NFTs during their boom in 2021.

The decision follows the SEC’s earlier statement from February clarifying that most memecoins do not qualify as securities under U.S. law. As a result, tokens like TRUMP—launched after Donald Trump returned to office—fall outside the agency’s jurisdiction.

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Behind this policy shift is a broader reorientation in how the SEC approaches crypto regulation under the current administration. Since President Trump’s return, the Commission has taken a noticeably more lenient stance toward the industry. However, that has not come without controversy.

Critics have raised concerns over the Trump family’s deep ties to the crypto space. The Trump Organization reportedly controls the majority of the TRUMP token, which surged to a $15 billion valuation in January following social media endorsements by the former president. Though the token later dropped in value, it continues to generate revenue through transaction fees.

The White House insists there’s no conflict of interest, claiming Trump’s assets are held in a trust managed by his children. But lawmakers like Senator Richard Blumenthal warn that the arrangement could be exploited by outside interests to gain influence over the president.

As for the SEC, Peirce stressed that the agency’s approach is about regulatory clarity—not political allegiance. “We didn’t have consistent rules. Now the goal is to step back and create a clearer framework,” she said, hinting at a longer-term effort to overhaul how crypto fits into federal securities law.

For now, investors dabbling in memecoins should expect minimal oversight—and maximum risk.

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.