SEC Backs Off Memecoin Oversight as $TRUMP Token Surges

The U.S. Securities and Exchange Commission (SEC) has officially stepped back from regulating memecoins, leaving investors to fend for themselves in a highly volatile market. Commissioner Hester Peirce clarified that tokens such as $TRUMP—closely linked to former President Donald Trump—are not classified as securities, offering no regulatory guidance or investor protections.

This regulatory gap comes amid the dramatic rise and fall of $TRUMP, which briefly hit a $15 billion market cap. Critics point to potential conflicts of interest, with reports indicating that 80% of the token is held by Trump-affiliated entities. Peirce compared the memecoin frenzy to the 2021 NFT boom, where speculative trading drove extreme price volatility without SEC involvement.

The decision reflects a broader shift in Washington’s approach to crypto under Trump’s influence. With memecoins now outside SEC jurisdiction, market behavior resembles that of unregulated digital collectibles—where hype and celebrity endorsements dominate over fundamentals.