- Hester Peirce stated many meme coins fall outside SEC’s regulations.
- Peirce differs from Gensler’s previous view on crypto regulation.
- Meme coins like TRUMP experienced major volatility, resulting in investor losses.
Commissioner of the US Securities and Exchange Commission (SEC) Hester Peirce addressed the regulatory status of meme coins, saying many of these digital tokens likely do not fall under the SEC’s jurisdiction.
In an interview with Bloomberg, Peirce stated that many meme coins, including those flooding the market, lack the characteristics that would bring them under current SEC rules.
According to Peirce, “Many of the meme coins that are out there probably do not have a home in the SEC under our current set of regulations.If Congress wants to address, they can do that; maybe something that the CFTC wants to address, but many of those, I think, probably are not under our jurisdiction.”
She explained individuals should be allowed to invest in tokens without government interference but also should be prepared for the possibility that the value of such tokens might eventually drop. She said, “If people want to buy a token or product that lacks a clear long-term value proposition, they should feel free, but they should not be surprised if the price drops.”
Related: Errol Musk, Father of Elon Musk, Enters the Memecoin Space
For the unversed, memecoins are a type of cryptocurrency inspired by internet memes, jokes, or popular culture. They don’t offer technological advancements but instead rely on community support and celebrity endorsements to gain popularity. Popular examples of memecoins include Dogecoin and Shiba Inu.
Meme Coin Volatility and Investor Losses
Peirce’s comments arrive as meme coins like $TRUMP, launched in January 2025, experience sharp market swings. $TRUMP fell 80% from its peak, causing significant losses for investors. A New York Times report noted that 813,000 wallets lost $2 billion after buying $TRUMP.
Related: Ripple and Galaxy Loaned MoonPay $160M On the Weekend TRUMP Launched
Her approach signals a shift from the SEC’s earlier position under former chairman Gary Gensler, who maintained that most cryptocurrencies, aside from Bitcoin, belong to the securities category. Peirce, known as “Crypto Mom” for her pro-crypto views, now heads the SEC’s new crypto task force and outlined a plan to set clearer rules for the crypto industry.
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