US SEC: 'Meme coins are not securities... Investors should not expect protection'

Doohyun Hwang

Summary

The U.S. Securities and Exchange Commission (SEC) has officially stated that meme coins are not securities.
Accordingly, meme coins are excluded from the SEC's investor protection.
An SEC commissioner stated that the SEC should have made it clear to the public that it does not intervene in meme coins.

The U.S. Securities and Exchange Commission (SEC) has officially stated that meme coins are "not securities," making it clear that they are excluded from investor protection.

According to CNBC on the 30th (local time), SEC Commissioner Hester Peirce said, "You should not expect the SEC to protect you when it comes to meme coins," and added, "The SEC should have made it clear to the public that it does not intervene at all."

She went on to say, "The meme coin craze is similar to the situation in 2021 when non-fungible tokens (NFTs) gained popularity. NFTs were not securities, but their value rose and fell depending on investor activity in the market. The SEC should have announced sooner that it would not intervene in meme coins," she added.