REGULATION | The United States SEC Declares Most Meme Coins Are Not Securities in Landmark Guidance

With this latest guidance, the SEC has provided much-needed clarity on meme coins, offering relief to traders and project developers alike. However, the broader implications for the crypto market remain to be seen as the industry navigates this new regulatory environment.

CryptoGuru··3 min read

The U.S. Securities and Exchange Commission (SEC) issued new guidance on Thursday, clarifying that it does not consider most meme coins—crypto tokens inspired by internet culture—as securities under federal law. This announcement marks a significant shift in the regulatory landscape for digital assets.

According to the SEC, investors who buy or hold meme coins are not protected by federal securities laws. The agency also stated that individuals involved in the buying and selling of these tokens do not need to register their transactions with the Commission.

This development comes just a month into President Donald Trump’s second term, during which he issued an executive order to establish the Department of Government Efficiency, led by Elon Musk. Notably, the department is named after DogeCoin (DOGE), one of the most well-known meme coins.

In a move that further cemented his crypto-friendly stance, President Trump also introduced his own meme coin, $TRUMP, just days before his inauguration. However, since its peak on January 19 2025, the coin has reportedly lost $12 billion in value, according to The Telegraph.

SEC Chairman, Mark Uyeda, appointed by Trump in January 2025, has been vocal about bringing regulatory clarity to the crypto space. Upon taking office, he launched a cryptocurrency task force to establish well-defined rules around digital assets.

In its guidance, the SEC argues that meme coins do not generate yield or provide rights to future income, profits, or business assets – a key distinction from traditional securities. Instead, the agency classifies them more like collectibles, similar to digital art or trading cards.

Uyeda’s stance represents a stark departure from the approach taken by former SEC Chairman Gary Gensler, who repeatedly insisted that most crypto tokens, including meme coins, should be treated as securities. Gensler pushed for crypto firms to proactively register with the SEC and faced criticism for what some saw as a regulation-by-enforcement approach.

 

Uyeda, in contrast, emphasized a need for transparency in policymaking.

“For the last several years, the Commission’s views on crypto have been largely expressed through enforcement actions without engaging the general public,” he said in a statement.

“It’s time for the Commission to rectify its approach and develop crypto policy in a more transparent manner.”

In another major development on Thursday, the SEC dismissed its lawsuit against Coinbase, the largest cryptocurrency exchange in the U.S. This decision signals a possible softening of regulatory pressure on the crypto industry and aligns with Uyeda’s commitment to shifting away from legal battles toward a more structured regulatory framework.

With this latest guidance, the SEC has provided much-needed clarity on meme coins, offering relief to traders and project developers alike. However, the broader implications for the crypto market remain to be seen as the industry navigates this new regulatory environment.

 

 

 

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