Stuart Alderoty Supports SEC’s Decision on Meme Coins
Stuart Alderoty, Ripple’s chief legal officer, has shared his thoughts on the recent ruling by the U.S. Securities and Exchange Commission regarding meme coins. He has expressed his approval of the SEC’s classification of meme coins as collectibles, highlighting the simplicity and logic behind the decision.
Alderoty emphasized that meme coins do not meet the criteria of securities as they do not offer rights to income, profits, or assets. He commended the SEC for acting within its jurisdiction and delivering clear guidance to the crypto industry. According to Alderoty, the key factor is whether something falls under the SEC’s jurisdiction, not whether it is legal or illegal.
Meme Coins Defined as Collectibles by SEC
The SEC, in a press release, defined meme coins as crypto assets inspired by internet memes, characters, events, or trends. The regulator stated that the value of meme coins is derived from speculative trading and market sentiment, likening them to collectibles rather than investment contracts.
Community Reaction to SEC’s Decision
Anthony Pompliano, a prominent VC investor in the crypto space, also weighed in on the SEC’s decision. He raised concerns that if meme coins are classified as collectibles, it could set a precedent for other assets to be labeled as such in the future.
SEC’s Shift in Approach
Under the new leadership post-Gary Gensler, the SEC has dropped several high-profile cases against crypto companies. The dismissals of legal actions against Coinbase, Robinhood, Uniswap, and Consensus have been seen as a shift in the regulator’s approach towards the crypto industry. The community is now anticipating the resolution of the Ripple case following these developments.