SEC Drops Hammer: Meme Coins Like $TRUMP Escape Security Classification—Here’s Why It Matters
Regulators just handed meme coins a free pass—no securities laws, no paperwork, just pure unbridled speculation. Welcome to the wild west of crypto, where the rules are made up and the fundamentals don’t matter.
### The Fine Print You’ll Ignore
The SEC’s latest guidance draws a line in the sand: if it’s a meme coin with zero utility (looking at you, $TRUMP), it’s not their problem. Cue the collective sigh of relief from degens and the sound of a thousand VC firms scrambling to justify their ’research’.
### What This Means for Your Portfolio
Pump-and-dump schemes just got a regulatory hall pass. Retail traders will FOMO in, whales will cash out, and somewhere a financial advisor is quietly sobbing into their CFA textbook. Trade at your own risk—or embrace the chaos.
### The Ironic Twist
Wall Street still can’t decide whether crypto is a scam or the future of finance. Meanwhile, meme coins out here getting more regulatory clarity than half the ’serious’ altcoins. Maybe Satoshi was right about banks after all.
The U.S. Securities and Exchange Commission (SEC) has formally clarified that it will not regulate meme coins such as $TRUMP. This announcement follows a decision made earlier this year confirming that these tokens do not meet the legal definition of securities under U.S. law.
Commissioner Hester Peirce emphasized that while meme coins are part of a vibrant crypto niche, they do not fall under the agency’s regulatory purview. Peirce made the statement during the Bitcoin 2025 event in Las Vegas, noting that investors in meme coins should not expect traditional protections from the SEC.
SEC Takes a Hands-Off Approach — Similar to NFTs
Peirce drew comparisons between the current surge in meme coin interest and the NFT boom of 2021. Like NFTs, meme coins often fall outside regulatory frameworks, meaning buyers are engaging with minimal oversight or recourse in the event of fraud or volatility.
The meme coin segment has grown substantially, with a current market capitalization of over $62 billion and a 24-hour trading volume exceeding $10 billion. Top tokens in this category include Dogecoin, Shiba Inu, Pepe, $TRUMP, and Bonk.
The $TRUMP Token: A Politically Charged Meme Coin
Launched in January shortly before the presidential inauguration, the $TRUMP token surged to $44.28 before stabilizing around $10.71. Notably, around 80% of its token supply is reportedly controlled by the TRUMP Organization and its affiliates, raising concerns over potential conflicts of interest.
Lawmakers such as Senator Richard Blumenthal have raised ethical questions about the Trump family potentially profiting from crypto projects while holding political influence.
Regulatory Shift or Political Strategy?
The SEC has also recently dropped its legal battle against Binance, a MOVE many see as reflective of the current administration’s more crypto-friendly stance. While some speculate that these regulatory decisions may align with President Trump’s pro-crypto policies, Commissioner Peirce firmly denied any political motivation.
“Our goal is to create a better regulatory environment for all participants,” she said. Peirce also defended the SEC’s decision to rescind Staff Accounting Bulletin 121, which previously restricted banks from offering crypto custody services.
Investor Takeaway: Proceed With Caution
While the SEC’s clarification offers legal clarity, it simultaneously underscores the risk for retail investors. Without regulatory protection, meme coin investments remain highly speculative.
As this space continues to grow and intertwine with political narratives, it is increasingly important for investors to conduct due diligence, verify token ownership structures, and consider the broader implications of their investment choices.
