SEC Declares Meme Coins Exempt from Securities Regulations

The ruling coincides with legislative efforts to curb financial conflicts of interest after Trump and Melania's meme coin launches.

The SEC has ruled that meme coins, including those launched by Donald and Melania Trump, are not subject to federal securities laws, categorizing them as collectibles rather than securities.
Trump's $TRUMP coin surged to a peak value of $74 before losing over 80% of its value, with similar declines seen in Melania Trump's coin.
House Democrats, led by Rep. Sam Liccardo, are introducing the MEME Act to bar top officials and their families from issuing or endorsing cryptocurrencies and other financial assets.
Critics argue that meme coins, often volatile and speculative, pose risks of insider trading and foreign influence, particularly when tied to public officials.
The cryptocurrency market has faced broader declines recently, with Bitcoin dropping over 20% from its January peak, partly influenced by meme coin scandals.