{"id":21600,"date":"2025-02-28T10:10:34","date_gmt":"2025-02-28T08:10:34","guid":{"rendered":"https:\/\/forklog.com\/en\/sec-clarifies-meme-coin-status-and-warns-of-risks\/"},"modified":"2025-02-28T10:10:34","modified_gmt":"2025-02-28T08:10:34","slug":"sec-clarifies-meme-coin-status-and-warns-of-risks","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/sec-clarifies-meme-coin-status-and-warns-of-risks\/","title":{"rendered":"SEC Clarifies Meme Coin Status and Warns of Risks"},"content":{"rendered":"<p>Meme coins are generally not considered securities and are closer to &#8220;collectible assets.&#8221; This is stated in a <a href=\"https:\/\/www.sec.gov\/newsroom\/speeches-statements\/staff-statement-meme-coins\">statement<\/a> from the Division of Corporation Finance of the U.S. Securities and Exchange Commission (SEC).<\/p>\n<p>According to the document, participants in the &#8220;funny coins&#8221; market do not need to register with the agency. The SEC clarified that buyers and holders of such assets are not protected by securities laws.<\/p>\n<p>However, fraud involving meme coins could lead to prosecution by other regulators or law enforcement agencies.<\/p>\n<p>The regulator emphasized that the statement is not legally binding guidance but is intended to clarify the application of securities laws to cryptocurrencies.<\/p>\n<p>The SEC added that meme tokens generally lack utility and their prices &#8220;tend to be highly volatile.&#8221; Additionally, the coins do not fit the definition of an &#8220;investment contract&#8221; under the Howey Test, as they do not involve earning income from the management or entrepreneurial efforts of third parties.<\/p>\n<p>In conclusion, the SEC noted that meme coins remain outside the scope of traditional regulation. However, the agency will continue to monitor risks associated with fraud in this area.<\/p>\n<p>Earlier this month, Commissioner Hester Peirce <a href=\"https:\/\/u1f987.com\/en\/news\/hester-peirce-many-meme-coins-likely-beyond-secs-reach\">stated<\/a> a similar position. She also believes that many meme coins fall outside the SEC&#8217;s jurisdiction.<\/p>\n<p>Previously, analysts at Bernstein <a href=\"https:\/\/u1f987.com\/en\/news\/bernstein-predicts-liquidity-shift-from-meme-coins-to-defi-and-nfts\">claimed<\/a> that as the regulatory environment changes, liquidity in the crypto market will begin to shift from &#8220;funny coins&#8221; back to DeFi projects, NFTs, and gaming tokens.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Meme coins are generally not considered securities and are closer to &#8220;collectible assets.&#8221; This is stated in a statement from the Division of Corporation Finance of the U.S. Securities and Exchange Commission (SEC). According to the document, participants in the &#8220;funny coins&#8221; market do not need to register with the agency. The SEC clarified that [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":21599,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1161,128,26],"class_list":["post-21600","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-memes","tag-sec","tag-usa"],"aioseo_notices":[],"amp_enabled":true,"views":"42","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/21600","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=21600"}],"version-history":[{"count":0,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/21600\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/21599"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=21600"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=21600"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=21600"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}