SEC: Interpretation of similar collections to Meme coins! No securities definition required to register with the regulator

The U.S. Securities and Exchange Commission (SEC) recently issued a statement, clarifying that Meme coins do not fall into the scope of securities and do not require registration with the SEC. However, the SEC stressed that any fraud or fraud involved in the issuance or transaction of Meme coins will still face law enforcement actions by other institutions.

Meme Coin: Collected items rather than securities

The statement from the SEC company's financial department pointed out that Meme coins do not constitute securities issuance and sales, but are more similar to collectibles. This means that Meme issuers and traders do not need to register with the SEC, and investors are not protected by U.S. securities laws. However, any fraudulent or illegal sales may still face investigation and prosecution.

SEC explained that Meme coins usually lack practical use, have severe price volatility, do not meet the definition of securities, and cannot be compared with stocks or bonds, because it does not represent income or equity interests in the enterprise. Meme coins also do not comply with the "Howey Test" standard, which is used to define investment contracts. Therefore, the SEC believes that Meme coins themselves are not securities.

Strengthen supervision and promote industry norms

SEC recently established a "Cryptocurrency Project Team" aimed at developing a clearer framework for digital assets regulation. At the same time, the SEC has also reached settlements with lawsuits between several crypto companies and exchanges, including Binance, Coinbase, OpenSea, etc.

Parliament plans to legislate to restrict the issuance of digital assets by public officials

Democratic members of the U.S. House of Representatives are preparing to submit a bill that prohibits public officials from issuing, promoting, or promoting any securities, commodities or digital assets. This move is in sharp contrast to the previous issuance of TRUMP and MELANIA Meme coins by President Trump, whose prices have now fallen sharply.

Avoiding supervision is invalid

SEC stressed that this statement applies only to Meme coins that meet their definitions. Any attempt to circumvent securities regulations in the name of Meme coins will still be evaluated based on actual conditions. Hester Peirce, head of the SEC cryptocurrency project team, also previously stated that most Meme coins may not be within the scope of SEC supervision.

SEC's statement provides more clarity for the Meme currency market, and also strengthens the crackdown on cryptocurrency fraud, which helps maintain market order.

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