SEC’s Peirce Declares Memecoins Beyond Regulatory Protection

The SEC’s position on memecoins outlines that they operate outside regulatory frameworks, potentially affecting investor expectations and market dynamics.

Commissioner Hester Peirce addressed the Bitcoin 2025 Conference, reaffirming the lack of SEC protection for memecoins. According to Peirce, “You can package anything as a securities transaction. But meme coins? Don’t count on us to save you.” Many memecoins fail to meet the criteria to be regulated as securities.

David Sacks, White House crypto czar, suggested memecoins should be classified as collectibles . The TRUMP token experienced volatility following Peirce’s statement, raising questions about political connections.

The SEC’s stance may influence how future digital assets are perceived and regulated. Critics argue this could open new avenues for political influence through tokenized projects, impacting market dynamics.

Historical parallels to the NFT boom indicate a pattern of regulatory gaps for emerging digital assets. The SEC faced criticism for past inaction during such surges, possibly affecting future policy decisions.

Potential outcomes may include increased investor caution and adjustments in how memecoins and similar assets are marketed and traded. Market participants might demand clearer guidelines from regulators and governments, impacting future cryptocurrency developments.