The SEC states that most meme coins do not qualify as securities, providing long-awaited regulatory clarity for exchanges and investors.
SEC Confirms Meme Coins Are Not Securities
The U.S. Securities and Exchange Commission (SEC) announced that most memecoins do not fall under federal securities laws. This decision provides long-awaited clarity for the crypto industry.
According to the SEC’s Division of Corporation Finance, meme coins “typically have limited or no use or functionality” and are “more akin to collectibles.”
Regulatory Clarity Boosts Market Confidence
The SEC stated that meme coins do not generate yields or provide rights to future profits, meaning they do not meet the definition of securities.
Crypto attorney Ishmael Green called this ruling “the clarity that the digital asset space has been demanding for years.”
Trump Administration’s Crypto Stance Gains Support
The decision aligns with the administration’s promise to reduce regulatory crackdowns on crypto.
The statement follows the post-election meme coin boom and subsequent crash, reinforcing the need for clear regulations.
Dogecoin and Solana Gain on the News
Dogecoin, the sixth-largest cryptocurrency, gained 3% following the announcement, while Solana rose 2%.
Both Coinbase and Robinhood saw 1% after-hours trading gains, as exchanges may now list more memecoins without legal risk.
Meme Coins Remain Highly Speculative
Despite their speculative nature, meme coins remain a key part of crypto culture, often serving as an indicator of retail investor sentiment.
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