The US Securities and Exchange Commission (SEC) said that meme coins like Dogecoin and Shiba Inu are not securities, marking a landmark regulatory shift for the crypto industry.<\/p>\n
The agency’s decision, outlined in a Feb. 27 statement, says meme coins are “akin to collectibles” rather than financial instruments subject to securities laws.<\/p>\n
“A meme coin is not itself a security,” the regulator said in a statement<\/a>. ”Meme coins typically are purchased for entertainment, social interaction, and cultural purposes, and their value is driven primarily by market demand and speculation. In this regard, meme coins are akin to collectibles. Meme coins also typically have limited or no use or functionality.”<\/p>\n The SEC’s guidance highlights a broader shift in US crypto regulation under the pro-crypto Trump administration, marking a departure from the regulation-by-enforcement approach of former chair Gary Gensler.<\/p>\n “This is HUGE,” said The Kobeissi Letter, which has more than 756k followers on X. ”The statement clarifies TONS of unknowns behind the legal implications of launching a memecoin.”<\/p>\n WOW.<\/p>\n The SEC just said that meme coins are generally NOT considered securities under US federal law.<\/p>\n They also said that meme coins have \"limited or no use\" and do not need to be registered with the SEC.<\/p>\n This is a MASSIVE statement by the SEC. pic.twitter.com\/7KpB2c2481<\/a><\/p>\n — The Kobeissi Letter (@KobeissiLetter) February 27, 2025<\/a><\/p><\/blockquote>\n\n