The SEC clarified on Thursday that it does not consider most meme coins, arising from internet memes, as securities under federal law, indicating that buyers lack federal protections. This announcement comes during President Trump's term, noted for initiatives like launching the $TRUMP coin and appointing SEC chairman Mark Uyeda, who favors a regulatory framework on cryptocurrencies. Uyeda argues that meme coins resemble collectibles because they don't generate income or convey ownership rights like traditional securities. This guidance marks a significant departure from the SEC's past approach under former chairman Gary Gensler, who wanted stricter regulation.
The SEC's new guidance indicates that meme coins are not considered securities, which means buyers and sellers of these tokens lack federal legal protections.
Mark Uyeda, appointed SEC chairman, argues meme coins do not generate yields or confer rights, thus classifying them as collectibles rather than securities.
The recent guidance marks a significant shift from the previous SEC leadership's stance, which sought to regulate meme coins under security laws.
The SEC's decision follows Trump’s initiatives regarding cryptocurrencies, notably the launch of the $TRUMP coin, which has reportedly lost significant value.
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