SEC Takes Hands-Off Approach to Memecoins Like $TRUMP
The U.S.Securities and Exchange Commission (SEC) is no longer regulating memecoins. This means investors must be wary when dealing with volatile tokens such as $TRUMP, a coin linked to President Donald trump’s growing crypto ventures.
Speaking recently, SEC Commissioner Hester Peirce clarified that thes tokens are not considered securities. Thus, the SEC won’t provide guidance or protections to traders. This marks a meaningful change in the U.S. government’s stance on crypto under Trump, whose token peaked at a $15 billion market cap this year before plummeting.
- Donald Trump’s family reportedly owns 80% of $TRUMP coins.
- This situation raises concerns about conflicts of interest.
Peirce likened the meme coin situation to the 2021 non-fungible token (NFT) boom. Both aren’t classified as securities but faced sharp price swings due to speculative trading. She admitted the SEC missed a chance to provide public guidance then.
Peirce’s message is clear: investors should know that meme coins operate outside regular safeguards. Trump’s governance has softened the regulatory approach to crypto compared to previous leaders.
Critics, including Senator Richard Blumenthal, worry about conflict of interest due to the Trump family’s crypto stakes. Peirce defended this shift, citing the lack of clear regulatory guidelines in the past.
