Breaking
April 1, 2025

SEC Division’s New Stance on Memecoins Marks Major Change in Cryptocurrency Regulation Maisie Morrison | usagoldmines.com

TLDR

  • The SEC’s Division of Corporation Finance has declared that memecoins generally don’t qualify as securities under federal law, viewing them more as collectibles purchased for entertainment and social purposes
  • Their value is driven by market demand and speculation rather than business development or management efforts, failing to meet the Howey test criteria for securities
  • While memecoins themselves may avoid SEC registration requirements, fraudulent activities can still face enforcement from other regulators
  • High-profile figures like Trump and Argentina’s President Milei have been involved with memecoin promotions, leading to controversy
  • The announcement marks a shift from the SEC’s previous stance under former chair Gary Gensler, who viewed most cryptocurrencies as securities

The Securities and Exchange Commission’s Division of Corporation Finance announced on February 27, 2025, that memecoins generally do not qualify as securities under federal law. This decision marks a clear departure from previous regulatory approaches.

The division’s statement focuses on the nature of memecoins as entertainment and social interaction tools. These digital assets are primarily bought for cultural purposes rather than investment goals.

According to the SEC staff, memecoins lack the key characteristics that would classify them as securities under the Howey test. This legal framework determines whether an asset qualifies as an investment contract.

The commission pointed out that memecoins don’t typically involve pooled investments. There’s usually no central team collecting funds to develop a business venture.

Market demand and speculation drive memecoin prices, not business development efforts. This differs from traditional securities, where company performance affects value.

The new position means memecoin creators won’t need to register with the SEC. However, the agency warned that fraudulent activities could still face consequences from other regulators.

Political Fallout

Recent events have put memecoins in the political spotlight. Former President Trump’s team launched a Solana-based TRUMP token before his January inauguration.

The TRUMP token experienced a dramatic price swing. After an initial surge, it dropped 83% from its peak to $12.60, according to CoinGecko data.

TRUMP Price on CoinGecko
TRUMP Price on CoinGecko

Argentina’s President Javier Milei also entered the memecoin arena. His promotion of a memecoin on social media led to fraud charges and a judicial investigation.

Democrats have responded with proposed legislation called the MEME Act. This bill would prevent government officials and their families from promoting memecoins.

The SEC emphasized that their statement isn’t an official rule or regulation. It serves as a staff interpretation without legal force or effect.

Projects trying to disguise securities as memecoins will still face scrutiny. The SEC will examine the “economic realities” of each token to determine proper classification.

This guidance represents a change from former SEC Chair Gary Gensler’s approach. Under his leadership, the agency viewed most cryptocurrencies, except Bitcoin, as securities.

The Ripple Labs case exemplifies the previous regulatory stance. While a 2023 ruling found that XRP’s programmatic sales didn’t violate securities laws, the SEC appealed.

The latest announcement comes during broader changes in crypto regulation under the Trump administration. The SEC has already dropped several crypto-related lawsuits initiated during the Biden era.

The post SEC Division’s New Stance on Memecoins Marks Major Change in Cryptocurrency Regulation appeared first on Blockonomi.

 

This articles is written by : Nermeen Nabil Khear Abdelmalak

All rights reserved to : USAGOLDMIES . www.usagoldmines.com

You can Enjoy surfing our website categories and read more content in many fields you may like .

Why USAGoldMines ?

USAGoldMines is a comprehensive website offering the latest in financial, crypto, and technical news. With specialized sections for each category, it provides readers with up-to-date market insights, investment trends, and technological advancements, making it a valuable resource for investors and enthusiasts in the fast-paced financial world.

Recent:

Crypto News | Circle formally files for IPO, seeks listing on NYSE under ‘CRCL’ ticker Gino Matos | ...

If Trump’s trade wars don’t end well, the White House believes it’d be Howard Lutnick’s fault Jai Ha...

Pundit Explains Why Ripple’s XRP at $10 Price Just Feels Undervalued Brenda Ngari | usagoldmines.com

Crypto News | Crypto Game Founder in Hot Water After Former CMO Drops Truth Bomb on Fallout Chayani...

Crypto News | Bitcoin mining edges toward green dominance with 70% renewables by 2030 Oluwapelumi Ad...

Bybit Web3 discontinues NFT marketplace, Inscriptions and IDO platform Hristina Vasileva | usagoldmi...

Ripple (XRP) In Trouble, But Here’s Why This Could Be Good News For Emerging XRP Challenger Mutuum F...

Ethereum’s Bullish Breakout Blocked by Bearish Death Cross – Here’s the Fix Alejandro Arrieche | usa...

Tether Quietly Becomes One of Bitcoin’s Largest Whales With $8.44B in Holdings Jimmy Aki | usagoldmi...

Will a Recession Crash Bitcoin? Goldman Sachs Issues Grim 35% Warning Alejandro Arrieche | usagoldmi...

Why Buying Bitcoin Now Is Better Than Later As BTC Price Consolidates Within Falling Wedge Scott Mat...

Crypto News | EU regulators warn crypto deregulation push in the US could fuel global financial risk...

Mutuum Finance (MUTM) DeFi Lending Potential vs Ripple (XRP) U.S. Crypto Reserve Advantage: Which On...

Wall Street tells investors to ‘sell any bounce’ as the Dow Jones plunges at first market open of Q2...

Russia seeks to tokenize goods and property to boost investment Lubomir Tassev | usagoldmines.com

XRP To $27 In 60 Days? Analyst Sees Deja Vu In Price Action Christian Encila | usagoldmines.com

Crypto News | Metaplanet Increases Bitcoin Holdings to 4,046 BTC with Latest Acquisition Chayanika ...

Crypto News | UPCX halts transactions after $70 million hack exposes vulnerabilities Oluwapelumi Ade...

Crypto News | Digital Sovereignty Alliance Strengthens Industry Advocacy at DC Blockchain Summit 202...

Crypto News | Senator Ted Cruz introduces FLARE Act to repurpose flared gas for Bitcoin mining Gino ...

M2 Money Supply vs. Global Liquidity: Don’t Get Mistaken! Mustafa Mulla | usagoldmines.com

Viral Token Below $0.05 Forecasted to Join Cardano (ADA) and Binance Coin (BNB) in the Billion-Dolla...

UK ministers gear up for Trump tariffs as trade deal prospects fade Collins J. Okoth | usagoldmines....

Bitcoin miners shift away from coal as solar and wind adoption rises Cryptopolitan News | usagoldmin...

PEPE Just Collapsed 25% in 5 Days – Should You Sell Now or Buy the Dip?  Harvey Hunter | usagoldmine...

Bybit Shuts Down NFT and IDO Services Following $1.5B Crypto Theft Hassan Shittu | usagoldmines.com

Mastercard Targets Venmo-Style Network for Blockchain Transactions Hongji Feng | usagoldmines.com

Crypto News | Key Metrics That Signal a Crypto Market Bottom, According to Santiment Mandy Williams...

XRP’s Worst-Case Scenario Could See a Drop to $0.30 Anjali Belgaumkar | usagoldmines.com

Trump’s tariffs threaten to slash over $700 billion from global GDP Florence Muchai | usagoldmines.c...

Is This the Next Solana? $400 Million Toncoin Investment Signals Explosive Upside Simon Chandler | u...

Luigi Mangione-tied coins spike 200%+, DOJ seeks his death penalty Florence Muchai | usagoldmines.co...

Whales Offload 200M Cardano During March – The Start Of A Trend? Sebastian Villafuerte | usagoldmine...

Crypto News | Why Is Pi Network’s PI Falling While the Entire Market Rallies? Jordan Lyanchev | usa...

Crypto News | Arthur Hayes Confident in $250,000 Bitcoin Amid Fed’s Policy Pivot Chayanika Deka | u...

Crypto News | Crypto venture funding soars to $3.5 billion in March, highest since March 2022 Oluwap...

Ripple (XRP) Price Dips 10% As Investors Buy Mutuum Finance (MUTM) For 16x ROI Cryptopolitan Media |...

Taiwan advances crypto regulation with two drafts of “Virtual Asset Service Act” Nellius Irene | usa...

Russian Language Marketplaces Remain Drivers of Crypto Drug Sales: TRM Labs Report Jimmy Aki | usago...

Warning: Bitcoin And Altcoins Fischer Transform Indicator Turn Bearish For The First Time Since 2021...

Crypto News | Bitcoin, Ether Post Worst First Quarter Performance in 7 Years Mandy Williams | usago...

Crypto News | Russian darknet dominated crypto drug trade in 2024 with $1.65 billion transactions Ol...

Key US Economic Events This Week: How They Could Impact Crypto Mustafa Mulla | usagoldmines.com

US to Reveal Bitcoin, Crypto Holdings on April 5 Victor | usagoldmines.com

Elon Musk accuses the U.S. government of deleting a terabyte of data to hide crimes Collins J. Okoth...

Ethereum (ETH) and Mutuum Finance (MUTM) Emerge As Crypto Giants Shaping the Future Cryptopolitan Me...

UPCX Official loses $70M in UPC tokens after unauthorized smart contract access Hristina Vasileva | ...

Why Bitcoin’s Bullish Uptrend was Swiftly Halted by Retail Traders Olivia Brooke | usagoldmines.com

Crypto Analyst Predicts Massive $8 XRP Bull Run: Here’s What to Expect Soon Aliyu Pokima | usagoldmi...

Ripple Price Prediction; XRP Could Fall Below $1 Within Weeks As Trading Volume Drops Overs 75% Cryp...

Tech stocks investors’ fears brew over the AI bubble and the negative weight of markets Florence Muc...

Bitcoin selling pressure eases as sellers ‘dry up’ and buyers show confidence Collins J. Okoth | usa...

Bitcoin Price Prediction: Why Are Big Investors Betting Big On BTC And New Viral P2E Altcoin Cryptop...

SIR.trading Offers $100K Bounty to Exploiter After Losing Entire TVL Hassan Shittu | usagoldmines.co...

Is Sui About to Explode? While the Market Crashes, This Coin Quietly Climbs Harvey Hunter | usagoldm...

Should You Long or Short XRP? Top Traders Split as Signals Flash Simon Chandler | usagoldmines.com

K-pop Giant and BTS Label HYBE Abandons Blockchain Project Sead Fadilpašić | usagoldmines.com

Ethereum To Bitcoin Ratio Hits Record Low—Is Ether In Trouble? Christian Encila | usagoldmines.com

Crypto News | Bitcoin Price Analysis: BTC Must Reclaim This Key Level to Resume Its Bull Run Crypto...

Crypto News | 200,000,000 ADA: Will Cardano’s Price React to the Whales’ Selling Spree? Dimitar Dzh...

Crypto News | Backpack begins identity verification to repay FTX EU claimants Oluwapelumi Adejumo | ...

SIR.trading Hack: A Costly Dencun Attack Tari | usagoldmines.com

Ishiba against cutting Japan’s consumption tax on food as skyrocketing rice prices double Graham Smi...

China looks to India for trade ahead of US tariff announcement Florence Muchai | usagoldmines.com

Bitcoin and Tron fuel Russia’s darknet dominance, accounting for 97% of sales: report Vignesh Karuna...

Solana Investor Who Scored $10M From Dogecoin Now Betting on This $0.003333 Meme Coin Cryptopolitan ...

Crypto cards are driving adoption as WhiteBIT’s Nova hits over 1M transactions Hristina Vasileva | u...

Crypto Analyst Calls Dogecoin Chart A ‘Beauty’ As Key Indicators Align Jake Simmons | usagoldmines.c...

Crypto News | Bitunix Launches the World’s First K-Line Ultra App with TradingView Integration Chai...

Crypto News | Bitcoin Whales Are Back: Could BTC Be Poised for a Breakout? Wayne Jones | usagoldmin...

Crypto News | BitMEX Unveils Enhanced BMEX Token Utility with Increased Staking Rewards and Lower T...

Crypto News | Kentucky drops Coinbase’s staking lawsuit amid growing regulatory shift Oluwapelumi Ad...

Crypto News | Asian Bitcoin adoption surges as Kliff Capital funds Sora Ventures’ Bitcoin treasury m...

Crypto News | Metaplanet becomes 9th-largest corporate Bitcoin holder after new purchase Oluwapelumi...

Will BlackRock’s New Bitcoin ETP Drive Crypto Adoption in Europe? Vignesh S G | usagoldmines.com

Crypto News: Binance Users in India Receive Tax Notices Over TDS Compliance Anjali Belgaumkar | usa...

United States Institute of Peace and Musk’s Financial Data Breakthrough: What It Means for U.S. Gove...

April & May: Historically Bullish Months for Ethereum (ETH), Analyst Predicts $3,000! Mustafa Mu...

Bitcoin Price Forecast: Can a Global Liquidity Recovery Trigger a Bitcoin Rally? Vignesh S G | usago...

Solana Launches Policy Institute to Educate Lawmakers Victor | usagoldmines.com

President Trump says he expects Elon Musk and D.O.G.E “to end” very soon Jai Hamid | usagoldmines.co...

Crypto hacks surge in Q1 2025: $1.63B stolen, up 131% YoY Vignesh Karunanidhi | usagoldmines.com

Brazil’s court allows NFT subpoenas to Bitcoin wallets in high-profile fraud case Florence Muchai | ...

Cardano (ADA) Reaching $10 Could 12x $5000, but This Token Could Grow It 48x In a Shorter Period Cry...

Vitalik Buterin sends $500K in ETH to support dev amid Ether price pump Ashish Kumar | usagoldmines....

Kentucky drops Coinbase staking lawsuit after passing Bitcoin Rights Bill Cryptopolitan News | usago...

US government set to reveal Bitcoin and crypto holdings on April 5 Brenda Kanana | usagoldmines.com

China and Shrapnel Launch First Licensed Web3 Game on Official RWA Chain Sead Fadilpašić | usagoldmi...

Vanuatu Passes Crypto Licensing and Regulation Act Hassan Shittu | usagoldmines.com

Kentucky Drops Crypto Staking Lawsuit Against Coinbase, Joining Vermont & South Carolina Hassan ...

XRP MVRV Ratio Dips Below The 200-Day MA – Trend Shift Underway? Sebastian Villafuerte | usagoldmine...

Crypto News | XRP, DOGE Shoot up as BTC Price Reclaims $84K Level (Market Watch) Jordan Lyanchev | ...

Crypto News | 1 Billion and Counting: Shiba Inu’s Shibarium Reaches a Major Milestone Dimitar Dzhon...

Bye Bye Europe: As Binance’s Official Stopped Its USDT Trading in the EEA Region  Mustafa Mulla | us...

Hoskinson: Stablecoin Bills Will Trigger Big Tech’s Crypto Push Victor | usagoldmines.com

BitBonds: A New Solution to America’s Debt Crisis? Victor | usagoldmines.com

Solana (SOL) Exploded 10,000% in Weeks in 2021, Here Is A Token Analysts Believe Could Exceed SOL in...

Circle could file for IPO by late April, reports Hannah Collymore | usagoldmines.com

Japan to strongly advocate for exemption from U.S. auto tariffs Collins J. Okoth | usagoldmines.com

ZKLend hacker loses all funds to phishing site spoofing Tornado Cash Hristina Vasileva | usagoldmine...

Leave a Reply