SEC Declares Most Meme Coins Are Not Securities

The agency clarified that meme coins lack characteristics of securities but warned against fraudulent practices disguised under the label.

The SEC announced that most meme coins do not qualify as securities under U.S. federal law, citing their lack of yield generation or rights to business profits or assets.
Meme coins, often inspired by internet memes or trends, are described as collectibles with limited or no functionality and are driven by market speculation.
The guidance excludes assets falsely labeled as meme coins to evade securities laws, with the SEC reserving enforcement for such cases.
This clarification follows a surge in meme coin launches, including tokens tied to President Donald Trump and First Lady Melania Trump, which have seen sharp value fluctuations.
The SEC's stance aligns with the new administration's crypto-friendly approach, aiming to reduce regulatory uncertainty and encourage U.S. investment in digital assets.