US Securities and Exchange Commission (SEC) Commissioner Hester Peirce recently discussed the regulatory challenges surrounding memecoins in a Bloomberg interview on Feb. 11. She highlighted the fact that current laws do not categorize these tokens as securities, leaving a gap in oversight.
Peirce noted that many memecoins may not fit within the SEC’s existing regulatory framework, and suggested that Congress may need to introduce new legislation to clarify the regulatory landscape. She also mentioned the possibility of the Commodity Futures Trading Commission (CFTC) overseeing these assets.
David Sacks, a crypto advisor to the White House, proposed that memecoins should be classified as collectibles rather than financial securities. He argued that these assets derive their value from market sentiment rather than traditional investment contracts.
Nate Geraci, President of ETF Store, also weighed in on the issue, stating that memecoins do not meet the SEC’s definition of securities and likening them to digital collectibles.
Despite their speculative nature, memecoins have seen a surge in popularity over the past year. Inspired by internet culture and public figures, these tokens often lack intrinsic value but attract a significant following. Notable figures like US President Donald Trump and his wife Melania have even launched their own memecoins.
The Central African Republic recently joined the memecoin trend by issuing its own token, CAR, on the Solana-based Pump.fun platform. Crypto influencer Ansem believes that memecoins will continue to play a significant role in the digital asset space, driven by social trends and internet virality.
Memecoins have become a distinct sector within the cryptocurrency market, with their popularity showing no signs of waning. As these assets continue to capture the attention of traders and investors, it remains to be seen how regulatory authorities will address the unique challenges they present.