“Many of the meme coins out there probably do not fall under SEC regulation,” Peirce said in a Bloomberg interview.
By Chimamanda U. Martha
Edited by Julia Sakovich
Updated
3 mins read
Hester Peirce, head of the newly established crypto task force at the Securities and Exchange Commission (SEC), said on Tuesday that meme coins such as TRUMP TRUMP $11.47 24h volatility: 0.3% Market cap: $2.30 B Vol. 24h: $613.98 M and MELANIA MELANIA $0.68 24h volatility: 3.0% Market cap: $101.91 M Vol. 24h: $47.74 M may not be classified as securities, meaning they could fall outside the agency’s jurisdiction.
Peirce, often called “Crypto Mom” for her support of the digital asset industry, dismissed the idea that all meme coins automatically qualify as securities — contradicting former SEC Chair Gary Gensler’s broad stance on crypto regulation.
During his tenure under the Biden administration, Gensler asserted that the majority of cryptocurrencies should be classified as securities and regulated accordingly. He included meme coins in this category, arguing that they met the legal definition of investment contracts.
However, in an interview with Bloomberg on Tuesday, Peirce pushed back, stating that while many meme coins are in circulation, some of them do not meet the criteria required to be classified as securities.
“There are lots of people introducing meme coins right now, [and] facts and circumstances matter. But many of the meme coins that are out there probably do not have a home in the SEC under our current set of regulations,” she said.
Meanwhile, the crypto market has seen a wave of celebrity-backed meme coins, with figures like Caitlyn Jenner, Iggy Azalea, and Andrew Tate launching their own tokens last year. However, the hype soon faded, and many of these coins disappeared from the spotlight. Blockchain platforms like Pump.Fun allowed these celebrities to create meme coins without coding knowledge, leading to an explosion of new tokens.
While the trend seemed to slow down after Bitcoin BTC $84 217 24h volatility: 0.5% Market cap: $1.67 T Vol. 24h: $24.58 B surged past $100,000 in November, it was revived in January when Donald Trump and Melania Trump launched their first-ever meme coins, bringing fresh attention to the space.
Peirce’s comments on meme coins come shortly after she revealed that the SEC’s newly established crypto task force will focus on properly classifying digital assets to determine which should be considered non-securities and which fall under SEC regulation.
According to Peirce, the initiative aims to provide much-needed regulatory clarity for industry players looking to operate in the US market.
While meme coins remain in regulatory limbo, some cryptocurrencies have already been declared non-securities. Both Bitcoin (BTC) and XRP XRP $2.36 24h volatility: 1.7% Market cap: $136.88 B Vol. 24h: $2.99 B have received this classification. Gensler, despite his attempts to categorize XRP as a security, failed when Judge Analisa Torres ruled in 2023 that XRP does not meet the legal definition of a security.
During his time in office, Gensler repeatedly clarified that Bitcoin does not fall under securities laws but insisted that most other cryptocurrencies exhibited characteristics of securities.
With Peirce now leading the charge, the crypto industry is watching closely to see whether her approach will bring regulatory clarity — or simply add another layer to the ongoing debate over crypto classification in the US.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Chimamanda is a crypto enthusiast and experienced writer focusing on the dynamic world of cryptocurrencies. She joined the industry in 2019 and has since developed an interest in the emerging economy. She combines her passion for blockchain technology with her love for travel and food, bringing a fresh and engaging perspective to her work.
