Meme coins: collectibles, not securities, says SEC

Meme coins: collectibles, not securities, says SEC

The U.S. Securities and Exchange Commission (SEC) recently confirmed that meme coins such as Dogecoin and others are not securities, but rather collectibles. The move is intended to clarify the regulation of the rapidly expanding market for these cryptocurrencies.

According to the SEC, meme coins "do not constitute the offer and sale of securities" and participants in these transactions do not need to register. The commission warned that buyers and holders of these coins are not protected by federal securities laws.

Meme coins, which often arise from viral Internet trends, are typically limited in functionality and tend to be speculative in value. The SEC classifies them as collectibles whose value depends on market sentiment and demand, similar to collectible cards or stamps.

SEC Commissioner Hester Peirce has previously indicated that most meme coins are unlikely to fall under the agency's jurisdiction. In an interview, she said it is important to keep in mind the diversity of these assets and their speculative nature.

This new SEC approach may affect the future of meme coins and their trading in cryptocurrency markets, underscoring their status as entertainment investments rather than traditional financial instruments.

*This is not an investment recommendation.

Coingarage team