SEC Declares Meme Coins Are Not Securities Amid Crypto Policy Shift
The U.S. Securities and Exchange Commission (SEC) has confirmed that meme coins do not qualify as securities, marking a shift in regulatory tone under the new administration.
In a statement released Thursday, the SEC clarified that, based on its interpretation of the Howey test, meme cryptocurrencies generally fall outside the scope of federal securities laws. This follows comments earlier this month from the head of the agency’s crypto task force, who suggested that these tokens were unlikely to fall under the SEC’s jurisdiction.
“The division’s view is that transactions involving these types of meme coins do not constitute the offer and sale of securities,” the agency stated, emphasizing that securities are typically financial instruments like stocks, bonds, or notes. Meme tokens, by contrast, do not generate yield or grant rights to future income, profits, or business assets.
Meme coins—digital assets inspired by internet culture, trends, and public figures—have surged in popularity despite their notorious volatility. While Dogecoin remains the most valuable, countless others have emerged, some generating massive profits before crashing.
Recent high-profile events have kept meme coins in the spotlight. Former President Donald Trump’s team launched a Solana-based meme token, TRUMP, ahead of his January 20 inauguration. The coin initially skyrocketed in value but later collapsed, now trading at $12.60—an 83% decline from its peak. Meanwhile, Argentine President Javier Milei faced fraud charges after promoting a meme coin on X (formerly Twitter), leading to a legal probe following investor losses.
The SEC’s stance on crypto has notably softened under the new administration. Under Biden-appointed former Chair Gary Gensler, the agency aggressively pursued lawsuits against crypto firms, alleging they were offering unregistered securities. However, under the crypto-friendly leadership of President Trump, the regulator has already scrapped several high-profile investigations, signaling a more lenient approach to digital assets.