SEC says meme coins are not securities

Feb 28, 2025

SEC says meme coins aren't securities, affecting transactions and protections.

: The SEC announced that meme coins, originating from memes, are not considered securities under U.S. federal law, meaning transactions needn't be registered. This guidance was released during Donald Trump's second term, where he launched a meme coin named $TRUMP, which has seen a $12 billion decrease in value. SEC Chairman Mark Uyeda, appointed by Trump, is redefining crypto regulations, viewing meme coins as collectibles rather than securities. The SEC's announcement contrasts with former SEC Chairman Gary Gensler's stance and coincides with the dismissal of a lawsuit against Coinbase.

The Securities and Exchange Commission recently clarified that most meme coins, originating from memes, are not considered securities under U.S. federal law. This position implies that purchases and holdings of meme coins are not safeguarded by federal securities law, and participants do not need to register such transactions with the SEC.

This guidance has been issued under U.S. President Donald Trump's second term, following his executive order to establish the Department of Government Efficiency, led by Elon Musk and humorously named after Dogecoin. Trump's relationship with meme coins includes the introduction of $TRUMP, which has suffered a $12 billion drop in value since January 19, as reported by The Telegraph.

New SEC Chairman Mark Uyeda, appointed by Trump, seeks to distinguish clear crypto regulations, viewing meme coins as comparable to collectibles rather than securities. Uyeda's stance contrasts with former chairman Gary Gensler, who advocated for registering crypto tokens as securities, and the SEC has dismissed its lawsuit against Coinbase to reflect a more transparent crypto policy.