S.E.C. Declares Memecoins Are Not Subject to Oversight

Published On Feb 27, 2025, 8:20 PM

The SEC declared that memecoins, novelty digital assets, are not considered securities and thus not subject to federal regulatory oversight. This decision reflects a shift from the prior administration's stricter regulations on cryptocurrencies and aligns with President Trump's more lenient stance toward the crypto industry, especially after he introduced his own memecoin, $Trump. The SEC also plans to investigate memecoins carefully to prevent regulatory evasion and has recently dismissed enforcement actions against major crypto firms like Coinbase.