SEC “Meme coins including TRUMP are not protected under securities law”

Commissioner Hester Peirce of the SEC, who is creating standards for cryptocurrency regulation (Source: Bloomberg)

Unfolded reported that Commissioner Hester Peirce, who is also the head of the Cryptocurrency Task Force of the United States Securities and Exchange Commission (SEC), stated that meme coins, including President Donald Trump's official meme coin, OfficialTrump (TRUMP), are not protected under SEC securities laws.

Commissioner Peirce pointed out about meme coins that “under the current structure, they are an asset class that cannot be subject to the legal protections granted by the SEC.” This clarified that it is difficult for meme coin holders to expect the legal safeguards or investor protection measures that can be anticipated from existing financial products.

In a situation where public interest in related assets is increasing due to the surge in meme coins and President Trump's direct involvement, there is analysis that the SEC's stance could act as a considerable warning to the market.