SEC Commissioner Peirce: Meme coins are unlikely to be subject to regulatory oversight.
Author: Mat Di Salvo, Decrypt; Compiler: Deng Tong, Golden Finance
The head of the newly established cryptocurrency working group at the U.S. Securities and Exchange Commission said that Meme coins are unlikely to be subject to regulatory oversight.
On Tuesday, in an interview with Bloomberg, SEC Commissioner Hester Peirce was asked about whether President Donald Trump and his wife’s official Meme coin TRUMP and MELANIA, and such cryptocurrencies, fall within the jurisdiction of the agency.
SEC cryptocurrency working group’s new head said that such assets may not fall within the agency’s jurisdiction. President Donald Trump launched his own Solana-based Meme token TRUMP shortly before the inauguration on January 20, and Melania Trump also followed suit by launching her own token.
“There are a lot of people launching meme coins now,” Pierce said. “But according to our current regulatory requirements, many meme coins may not find a foothold with the SEC.”
Meme coins are cryptocurrencies based on internet jokes, subcultures, public figures, etc. Such assets are rapidly created, and their value may skyrocket instantly, but they can also collapse just as quickly. Some traders have made astonishing profits by trading them, but when they suddenly become worthless, others may suffer heavy losses.
Trump soared to over $73 the day before the presidential inauguration, but its value plummeted sharply thereafter. CoinGecko shows that the price is currently $15.42, nearly 80% lower than that record high.
Commissioner Peirce said last week that regulators are working to determine which cryptocurrencies should be considered securities and are taking a different approach from the previous government’s regulation of the sector.
Under the leadership of President Joe Biden, the SEC has taken a tough stance on the cryptocurrency field, with former chairman Gary Gensler, appointed by Biden, often suing large cryptocurrency companies for selling unregistered securities.
Despite actions taken by the SEC in the past, Commissioner Peirce has earned the nickname “Crypto Mom” for her friendly attitude towards the space. It is expected that she will be less hostile towards companies in the industry, especially with President Donald Trump promising to help the sector thrive.
In her interview on Tuesday, she said that she wouldn’t describe herself as an advocate for the industry, but rather as a “freedom extremist.”
“What has happened to cryptocurrencies over the past few years has been extremely frustrating for someone who believes that the government is for the American people, not holding them back when they try something new,” she added.