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- Elon Musk and Joe Rogan criticized memecoins, comparing them to gambling and a game of “musical chairs.”
- The SEC clarified that memecoins do not fall under its regulatory oversight, emphasizing their speculative nature.
- Despite skepticism, memecoins surged, with DOGE up 10.3%, SHIB gaining 5.5%, and PEPE rising 5.7%, as trading volumes exceeded $9.38 billion in a day.
The world of memecoins came under fire during the latest episode of The Joe Rogan Experience, as tech billionaire Elon Musk and podcast host Joe Rogan scrutinized the speculative nature of these digital assets, likening them to gambling and musical chairs.
Despite Musk’s own history of embracing Dogecoin (DOGE)—even humorously renaming a government division as the “Department of Government Efficiency” (DOGE) with a Dogecoin logo—he issued a stark warning against treating memecoins as serious investments.
“It’s totally people just doing whatever—greater fool theory and musical chairs,” Musk said. “Don’t bet the farm on a memecoin.”
Rogan, known for his candid takes, expressed disbelief that pump-and-dump schemes tied to memecoins remain legal. “It’s just weird that it’s legal still,” he remarked. Musk didn’t argue the point but took the conversation in a broader direction, questioning the legitimacy of financial structures as a whole.
“The government’s one big pyramid scheme, if you ask me. Social Security is the biggest Ponzi scheme of all time,” he added, hinting at deeper systemic issues. While Musk and Rogan dismissed memecoins as a risky gamble, the U.S. Securities and Exchange Commission (SEC) has officially clarified its stance: memecoins do not fall under its regulatory oversight.
“Meme coin purchasers are not making an investment in an enterprise… Their funds are not pooled together to be deployed by promoters or other third parties for developing the coin or a related enterprise,” the SEC stated.
SEC Acknowledges Memecoin Hype, No Oversight as DOGE & SHIB Surge
This marks a significant position from the agency, emphasizing that memecoin valuations are driven by social sentiment and speculation rather than centralized control. SEC Commissioner Hester Peirce reinforced this perspective, cautioning investors not to expect regulatory intervention.
“Just because something is out there and it’s popular does not mean that it will fit within the SEC jurisdiction,” she said.
The SEC’s stance comes amid a broader shift in its approach to crypto regulation. In recent weeks, the regulator has dropped investigations into Coinbase, Robinhood, OpenSea, and MetaMask, while forming the Cyber and Emerging Technologies Unit (CETU) to better oversee digital assets.
Despite skepticism from Musk and Rogan, memecoins are experiencing a market resurgence. Dogecoin (DOGE) is up 10.3%, Shiba Inu (SHIB) gained 5.5%, and Pepe (PEPE) rose 5.7% in the past 24 hours. The Official Trump (TRUMP) token surged 20.6%, while Bonk (BONK) climbed 11.7%.
With trading volumes surpassing $9.38 billion in just a day, memecoins appear to be thriving in a speculative frenzy—proving, at least for now, that the game of musical chairs is still in full swing.
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