EddieJayonCrypto
1 Mar 25
The US Securities and Exchange Commission's (SEC) Division of Corporation Finance released a statement clarifying that meme coins are not viewed as securities under federal securities laws but are considered more like collectibles. As a result, transactions involving meme coins do not constitute the...
The US Securities and Exchange Commission's (SEC) Division of Corporation Finance clarified that meme coins are not viewed as securities under federal securities laws but are considered more like collectibles. Transactions involving meme coins do not constitute the offer and sale of securities, and those offering or selling meme coins are not required to register their transactions with the SEC. The SEC's updated guidance on meme coins reflects a notable shift in approach and indicates that meme coins do not come under the regulatory scope of the SEC. The SEC's position is based on the definition of securities under federal law and the specific economic realities of each transaction. However, fraudulent activities related to meme coins could still face enforcement actions under other federal or state laws. The division's guidance does not apply to products misrepresented as meme coins to circumvent securities regulations. The new SEC chairman, Mark Uyeda, has indicated plans to clarify cryptocurrency regulations and has announced the creation of a cryptocurrency task force. This updated guidance on meme coins represents a shift from the agency's previous approach and comes after the appointment of the new chairman. Earlier this month, SEC Commissioner Hester Peirce stated that many of the meme coins in the market do not come under the regulatory scope of the SEC while emphasizing that "facts and circumstances matter."