The rising popularity of memecoins has sparked debates over their regulatory oversight, with US Securities and Exchange Commission (SEC) Commissioner Hester Peirce suggesting that the SEC may not have the authority to regulate most of these digital assets.
SEC’s Stance on Memecoins
In a February 11 interview with Bloomberg, Peirce acknowledged that current laws do not classify memecoins as securities, creating a regulatory gap. She explained:
“There are lots of people introducing memecoins right now [and] facts and circumstances matter. But many of the memecoins that are out there probably do not have a home in the SEC under our current set of regulations.”
She suggested that Congress may need to introduce legislation to clarify the regulatory framework for memecoins, adding that the Commodity Futures Trading Commission (CFTC) could be better suited to oversee these assets.
Memecoins as Collectibles?
White House crypto advisor David Sacks proposed that memecoins should be categorized as collectibles rather than securities. He argued that their value is primarily derived from market sentiment, similar to baseball cards or stamps.
“[Memecoins are] collectibles. It’s like a baseball card or a stamp. People buy it because they want to commemorate something.”
Similarly, ETF Store President Nate Geraci supported this view, stating that memecoins do not align with the SEC’s definition of securities and are instead more akin to digital collectibles.
“Memecoins [are] more akin to collectibles IMO.”
Rising Popularity of Memecoins
Despite their speculative nature, memecoins have gained immense popularity over the past year, often drawing inspiration from internet culture and public figures. Unlike traditional assets, these tokens rarely promise intrinsic value yet continue to attract significant investor interest.
Notably, former US President Donald Trump and his wife, Melania, have both launched their own memecoins, further cementing the trend. Additionally, the Central African Republic recently issued its own token, CAR, via the Solana-based Pump.fun platform.
Given their cultural significance, crypto influencer Ansem believes memecoins will remain a core part of the digital asset ecosystem. He attributed their lasting appeal to social trends and internet virality.
“Memecoins will never die because social trends & virality online are such large drivers of attention for the cohort of people trading these markets – so will always have their own sector.”
Looking Ahead
As discussions on memecoin regulation continue, Peirce’s remarks suggest a shift towards the CFTC as the primary regulatory body. With the increasing adoption of memecoins and their influence on digital culture, industry participants anticipate further clarity from lawmakers and regulators on their classification and oversight.
