SEC Declines to Regulate $TRUMP and Other Meme Coins, Leaving Investors Unprotected

The Securities and Exchange Commission (SEC) has officially distanced itself from regulating meme-based tokens, including the controversial $TRUMP coin. Commissioner Hester Peirce clarified the agency’s stance, excluding most meme coins from securities classification. This decision leaves investors without formal protection and has sparked political debate.

The $TRUMP token, launched in January and linked to Trump-associated entities, briefly surged to a $15 billion valuation before crashing. Critics highlight transparency concerns, as 80% of the supply is reportedly held by Trump-linked organizations. Democratic lawmakers are scrutinizing potential conflicts of interest tied to Trump’s crypto involvement.

Washington appears to be shifting toward a more crypto-friendly regulatory approach post-Biden. The SEC’s retreat marks a stark departure from past enforcement practices, raising questions about alignment with Trump’s growing influence in the digital asset space.