- SEC released a statement in the past day discussing the memecoins classification.
- The US regulator has reformed its approach towards digital assets in the past month.
As the bears tighten their hold on the crypto market, the community experiences FUD. The crypto fear index has dropped to 21 indicating strong liquidations. Bitcoin fell to $79,000 in the past hour, further driving tensions upwards. Meanwhile, the SEC is scrutinizing memecoins.
Notably, the SEC published an article discussing the classification of memecoins. The statement outlined that trading of memecoins would not be considered as a sale of securities under federal securities law.
Moreover, the US regulator clearly stated – “a meme coin is not itself a security.” This would mean that the selling and trading of memecoins would not be compartmentalized under the securities jurisdiction.
In the statement, the SEC stated:
“…this statement does not extend to the offer and sale of meme coins that are inconsistent with the descriptions set forth above, or products that are labeled “meme coins” in an effort to evade the application of the federal securities laws by disguising a product that otherwise would constitute a security.”
However, they said that fraudulent activities involving memecoins would still qualify to be examined by the SEC. The regulator, after the change in administration, has altered its approach towards the crypto sector.
How has the SEC Reformed its Crypto Approach?
After Gary Gensler’s resignation, the US regulator underwent a major change in administration. The current acting SEC Chair, Mark T. Uyeda, is known to be pro-crypto and aware of digital assets. Additionally, Paul Atkins, the SEC chair for 2026, is also believed to be pro-crypto.
This change in leadership has put an end to the previous ‘regulation through enforcement’ approach of the regulator. This is further depicted by the recent two actions of the regulator. In the past day, Gemini founder Winklevoss announced that the regulator had dismissed the case against the firm.
Recently a few hours ago, reports arrived that the Coinbase Vs. SEC case also has been dismissed. These incidents suggest that the administration is striving to change and reform the crypto regulatory landscape.
Highlighted Crypto News Today:
Scammers are using fake crypto job offers as a new crypto scam
