Summary: The SEC has officially declared that meme coins are not considered securities under U.S. law. In a February 27 statement, the agency clarified that meme coins function as collectibles rather than financial assets since they don’t guarantee profits or income.
While the SEC is not regulating meme coins directly, it warned that fake transactions would be met with prosecution by other officials. The crypto space welcomed this transparency positively, and analysts have indicated that it can bring more investors into the market. Crypto-friendly exchanges such as Coinbase and Robinhood saw small bumps in their stock prices following the announcement.
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Concurrently, politicians are demanding stricter controls. The MEME Act, introduced, would criminalize profiting by public officials from endorsing meme coins. This follows on the TRUMP coin scandal, when its price wildly oscillated following its release.
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The SEC stance brings regulation clarity, even though the threats in the meme coin environment remain, most notably with scams and political activism now more widespread.