The US Securities and Exchange Commission (SEC) has issued new guidance stating that most meme coins do not meet the requirements to be protected by federal securities law. The commission considers these cryptocurrencies “more akin to collectibles” due to their limited functionality and lack of utility.
Meme coins, which originate from internet memes or cultural phenomena, are typically purchased for entertainment and social interaction purposes, driven primarily by market demand and speculation. The SEC notes that their value is highly volatile, often accompanied by warnings about risks and lack of utility beyond entertainment.
The clarification could impact crypto regulations and shield companies and individuals creating meme coins from potential litigation. It comes amid a rise in new meme coin cryptocurrencies following Trump’s election, which has sparked concerns about “pump and dump” schemes.
Source: https://www.theverge.com/news/621454/sec-meme-coin-securities-collectibles-guidance