SEC’s pro-crypto governance starts taking action on crypto, but this time, it’s for GOOD

input: SEC’s pro-crypto governance starts taking action on crypto, but this time, it’s for GOOD. The US SEC has made it clear that meme coins, like TRUMP

The U.S. Securities and Exchange Commission (SEC) has clarified that meme coins, such as those with names like TRUMP and other popular tokens, are not considered securities or investments.

The agency views them more closely to collectibles, which are not subject to the same strict financial rules.

However, just because meme coins aren’t regulated doesn’t mean scammers have a free pass. The SEC warned that anyone using meme coins for fraud or to mislead people could still face legal trouble.

The SEC’s pro-crypto governance starts taking action on crypto, and this time, it’s for GOOD.

The U.S. Securities and Exchange Commission (SEC) has made it clear that meme coins, often the subject of scams and pump-and-dump schemes, are not considered securities or investments.

This ruling, reported by The Block, comes as no surprise, especially considering the recent setbacks the SEC faced in its cases against Coinbase, Consensys, and Gemini.

According to the SEC, meme coins like TRUMP, which saw a huge surge and fall in price earlier this year, don’t fit the legal definition of securities.

Unlike stocks or investment contracts, meme coins don’t give holders any rights to future profits, income, or ownership in a company.

Because of this, the SEC doesn’t require meme coin creators or traders to register with them, meaning they don’t have to follow the same rules as traditional investments.

However, this also means investors won’t get the usual protections from the SEC, exposing them to the risk of fraud, pump-dump schemes, and misleading advertising.

The SEC’s stance has sparked mixed reactions in the crypto space. Some industry players see it as a positive move, arguing that regulatory clarity will encourage more investment in meme coins, particularly on U.S.-based blockchains like Solana.

Crypto lawyer Ishmael Green noted that with meme coins officially outside securities laws, exchanges like Coinbase and Robinhood may feel more confident listing them, which could lead to a surge in market activity.

Following the announcement, shares of major crypto exchanges saw a slight uptick, reflecting optimism within the industry.

Meanwhile, in a surprising turn, the SEC is dropping its lawsuits against Coinbase, Consensys, and Gemini, signaling a positive change for crypto assets.

With the MEME Act on the horizon and the SEC shifting gears, the regulations scene for crypto—especially meme coins—is changing fast. Whether these changes bring more clarity or confusion remains to be seen.