The SEC has officially declared that meme coins are not securities, likening them to collectibles, as their value comes from market speculation and collective sentiment. These coins do not yield income or represent any enterprise investment, isolating them from federal securities laws. Therefore, transactions involving meme coins don’t need to be registered with the SEC, although buyers lack security protections. Nevertheless, the SEC notes any fraudulent activities related to meme coins could still face legal actions under various federal and state laws.
According to the SEC, meme coins are not classified as securities, as they derive value from speculative trading rather than providing returns or rights to future income.
Despite the non-security status of meme coins, fraudulent activities involving them may still attract enforcement actions under other federal and state laws.
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