The U.S. Securities and Exchange Commission (SEC) officially confirms that it will not control meme coins like TRUMP. This decision is based on the legal definition of securities under U.S. law, where meme coins are not considered legitimate securities assets. The announcement aims to clarify the controversial capital regulation scope, helping to clearly distinguish between investment-oriented Tokens and community-entertainment meme coins.
Commissioner Hester Peirce emphasized that meme coins, despite being in a vibrant cryptocurrency segment, are not under direct SEC management. Speaking at the Bitcoin 2025 event, she warned meme coin investors not to expect traditional protection measures like benefit security or fraud risk restrictions. This is a sign of significant legal risks in this investment channel.
SEC is applying a "hands-off" approach, similar to Non-Fungible Tokens. Meme coins are currently compared to the 2021 NFT boom, both being decentralized assets with little or no legal oversight. This means investors must take full responsibility when participating, as there are no support mechanisms during market volatility or fraud events.
The meme coin segment has grown rapidly, with a total market capitalization exceeding $62 billion and a 24-hour trading volume over $10 billion. Prominent Tokens include Dogecoin, Shiba Inu, Pepe, TRUMP, and Bonk. These are brands with large user communities, creating widespread effects in the cryptocurrency ecosystem, while also bringing extreme volatility suitable for risky traders.
The TRUMP Token – a meme coin with distinctive political elements, was issued early in the year, before the U.S. presidential inauguration. The Token's value once peaked at $44.28, then stabilized around $10.71. Notably, about 80% of the Token supply is owned by the Trump Organization and related companies, raising concerns about conflicts of interest and market manipulation.
Some legislators like Senator Richard Blumenthal have spoken about the ethical aspects of the Trump family potentially profiting from cryptocurrency projects while maintaining political positions. This issue opens a debate about transparency and strict regulations for Tokens influenced by public figures or powerful organizations.
SEC has also withdrawn its legal action against Binance, a sign of a more friendly policy towards the cryptocurrency industry under the current administration. Although some opinions suggest this decision is related to Trump's pro-crypto political strategy, Ms. Peirce affirms that the SEC's goal is to build a healthy, fair legal environment for all participants, without political motives.
Ms. Peirce also defended SEC's cancellation of Staff Accounting Bulletin 121 – a regulation preventing banks from providing cryptoasset custody services. This decision helps remove legal barriers, promoting the development of crypto-related financial services while enhancing custody transparency and security for investors.
Although SEC has clarified laws for meme coins, individual investors must be extremely cautious. Lack of legal protection means high-level investment risks, especially in a speculative and volatile market. Thoroughly researching Token ownership structure and assessing political-social influences in future projects is essential.
The increasingly deep integration between meme coins and political elements creates a complex environment, requiring investors to enhance risk awareness and analysis capabilities. Vigilance and professional knowledge will be the key to minimizing unwanted losses in the diverse and unpredictable current cryptocurrency market flow.
