"Many memes are outside the jurisdiction of the SEC," Commissioner Pierce's view

## Many memecoins may not be securities

Hester Peirce, a commissioner of the U.S. Securities and Exchange Commission (SEC), stated that many memecoins currently circulating in the market are unlikely to fall within the SEC’s regulatory purview, Bloomberg reported on the 11th.

Mr. Pierce was asked for his opinion on Trump’s memecoin, and the SEC continues as follows, stating that it assesses various facts and circumstances regarding specific cryptocurrencies.

Regarding memecoin, if Congress wants to address it, it is possible. Also, the Commodity Futures Trading Commission (CFTC) may want to address it. However, many memecoins are probably outside the jurisdiction of our SEC.

In the United States, the SEC oversees cryptocurrencies (virtual currencies) considered as securities, while the CFTC oversees virtual currencies considered as commodities. Mr. Pierce avoided explicitly mentioning Trump’s coin, but hinted at the possibility that some memecoin could be considered a commodity.

During the Biden administration, former Chairman Gensler, under whose leadership the SEC had been criticized for arbitrarily classifying any token as a security and enforcing regulations.

With the transition to the Trump administration, the SEC has also undergone a new regime and is launching a task force focused on virtual currencies. One of its important tasks is to provide guidelines on the classification of virtual currencies, particularly what is considered securities.

In the new administration, it is expected that the ‘Financial Innovation Technology for the 21st Century (FIT21)’ will progress to clarify regulations, including the classification of virtual currencies, in the parliament.

Related: Chairman of the US House Financial Services Committee plans to prioritize virtual currency legislation in 2025

Furthermore, David Sachs, who serves as the AI and Virtual Currency Special Envoy, recently expressed his personal opinion on President Trump’s official memecoin, suggesting that memecoin is akin to a ‘collectible’ similar to baseball team card collections.

memecoin

Coins that gain popularity by becoming a hot topic on the internet. One typical example is Dogecoin (DOGE), which saw a sharp increase in trading volume after being mentioned by Elon Musk on social media. Another example is SHIBA INU (SHIB), released in 2020 based on Dogecoin.

▶️Cryptocurrency Glossary

Regarding Mr. Trump’s memecoin

Currently, President Trump’s official memecoin ‘TRUMP’ is facing criticism from Democratic lawmakers and rights advocacy groups.

For example, the US consumer rights group Public Citizen has requested the US Department of Justice to investigate whether it is illegal for President Trump to promote ‘TRUMP’ on his own social media as ‘solicitation of gifts’.

Under federal law, a sitting president can receive gifts during their term as long as there is no ‘solicitation or coercion’ involved, but stating otherwise. It also argues that purchasing something called ‘’ is considered a gift without any return.

Some Democratic Party members have also criticized that the President is using his position to make money and that it could be used as a tool of foreign influence, potentially weakening US national security.

In the future, there is a possibility that discussions on the status of memecoin, including ‘TRUMP’, will become active among government agencies, the congress, and related authorities.

Related: What is memecoin? How to buy and find