- SEC Commissioner Hester Peirce said that almost all meme cash seemingly fall outdoors the company’s jurisdiction.
- TRUMP meme coin surged previous $73 earlier than crashing 80% to $15.42, highlighting meme coin volatility.
- Peirce emphasised a shift from previous SEC insurance policies, calling herself a “freedom maximalist” relatively than a crypto advocate.
The SEC’s newly appointed crypto process power head has made it clear—meme cash most likely gained’t fall below the company’s watch.
In an interview with Bloomberg on Tuesday, SEC Commissioner Hester Peirce was requested concerning the TRUMP and MELANIA meme cash, tokens launched by President Donald Trump and his spouse forward of his January 20 inauguration. Particularly, the query was whether or not these cryptocurrencies can be thought of securities below the SEC’s jurisdiction.
Peirce’s response? Unlikely.
“There are many folks introducing meme cash proper now,” she mentioned. “However lots of the meme cash on the market most likely don’t have a house within the SEC below our present set of laws.”
The SEC, unsurprisingly, didn’t reply to Decrypt’s request for remark.
The Wild World of Meme Cash
Meme cash are not like conventional cryptocurrencies. They’re typically impressed by web jokes, cultural moments, or public figures and could be minted in minutes. Their costs can skyrocket in a single day—then crash simply as rapidly. Some merchants make absurd income, others get worn out in a blink.
Working example: TRUMP. The token soared previous $73 simply earlier than the inauguration however has since nosedived to $15.42, an 80% collapse, in keeping with CoinGecko.
Regardless of this volatility, Peirce’s remarks counsel that meme cash, together with these tied to political figures, seemingly gained’t be labeled as securities. As a substitute, the SEC continues to be working by means of a a lot greater query—what cryptocurrencies ought to truly be regulated below securities regulation.
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A New Period for Crypto Regulation?
Underneath the Biden administration, the SEC—led by former Chair Gary Gensler—took an aggressive stance on crypto, regularly suing corporations for allegedly promoting unregistered securities. However issues are shifting.
Peirce, typically referred to as “Crypto Mother” for her industry-friendly stance, is anticipated to convey a unique strategy. Nonetheless, she’s cautious to make clear that she’s not right here to be an advocate for crypto corporations. As a substitute, she describes herself as a “freedom maximalist.”
“Watching what’s occurred to crypto for the previous a number of years has simply been extraordinarily irritating for somebody who believes that authorities is there to serve the American folks, to not stymie them once they’re making an attempt new issues,” Peirce mentioned.
With President Trump overtly supporting the crypto {industry}, the regulatory panorama is poised for a shake-up. How that performs out—and whether or not meme cash actually stay untouched—stays to be seen.