The SEC clarified that most meme coins, often linked to internet memes, do not qualify as securities under federal law. This decision indicates that transactions involving these cryptocurrencies do not require SEC registration. The SEC justified this by stating that meme coins lack the ability to generate income or convey business rights, categorizing them instead as collectibles. This guidance arrives amidst growing popularity and volatility of meme coins, which are often regarded as speculative investments, highlighting market dynamics driven by demand and cultural trends.
Meme coins are typically purchased for entertainment, social interaction, and cultural purposes, and their value is driven primarily by market demand and speculation.
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