Hester P. Peirce of US Securities and Exchange Commission acknowledged that SEC may not have authority to regulate many memecoins.
The financial regulator noted in a Bloomberg interview on February 11 that the current laws don’t classify tokens as securities. This leaves a gap for oversight.
The woman:
“There are lots of people introducing memecoins right now [and] facts and circumstances matter. But many of the memecoins that are out there probably do not have a home in the SEC under our current set of regulations.”
Peirce said that Congress might need to pass legislation in order to clarify the regulatory environment. She added that these assets could be overseen by the Commodity Futures Trading Commission.
Collectibles?
David Sacks of the White House’s crypto advisory team suggested that memecoins could be classified more as collectibles than financial instruments.
According to him these assets are valued more by the market than through investment contracts.
“He noted that:
“[Memecoins are] collectibles. It’s like a baseball card or a stamp. People buy it because they want to commemorate something.”
ETF Store President Nate Geraci echoed this sentiment, arguing that memecoins do not fall under the SEC’s securities definition. He also compared them to digital collectibles.
Geraci said:
“Memecoins [are] more akin to collectibles IMO.”
Mecoins are gaining in popularity
In the past year memecoins gained popularity, despite their speculation nature. While these tokens may be inspired by popular culture, or internet personalities, their intrinsic value is rarely guaranteed.
Melania Trump, the wife of US President Donald Trump, has also launched her memecoin. Recently, the Central African Republic has also released its token CAR on Pump.fun, a platform based in Solana.
Ansem, a crypto-influencer, believes that because of this, memecoins remain a major part of the space for digital assets. He said social trends and viral internet content are what fuels their popularity.
Then he added:
“Memecoins will never die because social trends & virality online are such large drivers of attention for the cohort of people trading these markets – so will always have their own sector.”
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