Hester Peirce Announces SEC Withdrawal from Regulating Memecoins
Hester Peirce, a senior member of the US Securities and Exchange Commission (SEC), has made a significant announcement regarding the agency’s stance on memecoins. The SEC is now stepping back from its role in regulating memecoins, leaving investors without the protection or guidance they may have previously expected, particularly in assets like TRUMP.
SEC’s Stance on Memecoins
During an interview with CNBC at the Bitcoin 2025 conference in Las Vegas, Peirce emphasized that investors should not rely on SEC protection when it comes to memecoins. The SEC had declared in February that most memecoins do not fall under the category of securities under U.S. federal law, including tokens like TRUMP that emerged after Donald Trump’s return to the presidency.
Peirce drew parallels between the regulation of memecoins and the rise of NFTs in 2021. She suggested that the SEC should issue a clear public statement regarding its stance on memecoins, similar to how it addressed NFTs in the past.
Controversies Surrounding TRUMP Token
Since President Trump’s term, the SEC has adopted a more lenient approach towards the cryptocurrency industry. However, this shift has sparked allegations of conflicts of interest, especially as the Trump family’s involvement in crypto has grown. The Trump Organization and its affiliates currently control 80% of the TRUMP token, which experienced a meteoric rise in value following Trump’s social media activity but subsequently faced significant losses.
Despite assertions from the White House that Trump’s assets are managed in a trust overseen by his children, concerns have been raised by figures like Democratic Senator Richard Blumenthal regarding potential avenues for foreign or corporate influence on the president through these assets.
SEC’s Position on Regulation
Peirce clarified that the SEC’s decisions regarding memecoins were driven by the lack of clear regulatory guidelines in the crypto space. She emphasized that the agency’s actions were not politically motivated but aimed at establishing comprehensive and transparent rules for crypto activities that intersect with securities laws.
It is essential to note that the information provided in this article is not intended as investment advice.