SEC Declares Meme Coins Are Not Securities Under Federal Law

The agency likens meme coins to collectibles, emphasizing their speculative nature and lack of intrinsic value.

The SEC announced that meme coins, typically inspired by internet memes or cultural trends, do not meet the definition of securities under the Howey Test.
Meme coins are described as speculative assets with limited or no functionality, often purchased for entertainment or cultural purposes rather than investment expectations.
The decision means transactions involving meme coins do not need to be registered with the SEC, but fraudulent activities related to these tokens can still face legal consequences.
The SEC clarified that labeling a financial product as a meme coin to evade securities laws will not exempt it from enforcement if it meets the criteria of a security.
The announcement follows a surge in meme coin launches, including high-profile examples like $TRUMP and $MELANIA, which have experienced significant volatility and value loss.