A visual representation of Dogecoin and other cryptocurrencies.
Yuriko Nakao |
The Securities and Exchange Commission applied long for instructions on Thursday evening that most Meme coins do not hold according to the US Federal Act.
Meme coins “usually only have limited or no use or functionality” and, according to the department for corporation finance of the agency, are “more collections similar”.
“It is the department's view that transactions in the types of Meme coins described in this declaration do not include the offer and sale of securities according to the federal screeches,” the explanation says. “People who participate in the offer and sale of Meme coins do not have to register their transactions with the Commission. Accordingly, neither Meme -Münz buyers nor the owner are protected by the federal laws.”
It also means: “A Meme coin represents none of the common financial instruments that have been listed specifically in the definition of” security “, since it does not generate any return or convey rights to future income, profit or assets of a company. In other words, a meme coin itself is not security.”
The clarification takes place after the last quick rise of such cryptocurrencies after the election of President Donald Trump and her crash in the past few weeks. It is also another notch in the belt of the new administration, which has promised to create clearer and perhaps cheaper regulatory conditions for the crypto industry and do it quickly.
“The latest explanation of the SEC to Meme coins is the clarity that the digital asset has been demanding for years,” said Ishmael Green, a crypto lawyer and partner of the Diaz Reus law firm. “This will advance the continued investments in the US crypto sector, since the vast majority of Meme coins, which have been launched in the past 12 months with multi -billion dollar markets, were published on Solana, an American blockchain.”
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Dogecoin has suffered from the latest Meme Coin crash, but still sticks to the winnings after the election
“[It] In addition, the promise of the current administration to the crypto community promises to end unnecessary and careless enforcement measures that suffocate innovation and investment, “he added.
DotecoinThe original Meme coin and the sixth largest cryptocurrency after market capitalization rose by 3%. The token that is bound Solanawhich the moderator for Meme coins in a single-in-cheek has risen 2%.
Shares of both Coin base And Robinhood rose by 1% after trading in hours.
The clarity could pave the way for both exchange operators, list more Meme coins without enforcing the risk of regulation.
In January, at the height of Trump's Meme Mania, the CEO of Coinbase, said Brian Armstrong [about 1 million] In a contribution to X is a week in which a week is created and grows … the evaluation of the individual one after the other, no longer feasible. “
Meme coins, of which there are thousands, are the most end to the risk spectrum. They are more active than Bitcoin and ether three to four times more active, which adapts to the market capitalization. In the past, they were a measuring device for retail interest and risk appetite in crypto, although most market participants warn strongly against them.
Despite their purely speculative nature and lack of intrinsic value, they are generally seen as an important sector of the cryptom market and as an important part of Internet culture, which reflects the origins, culture and permission of the crypto community.