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- SEC won’t regulate meme coins like $TRUMP, leaving investors without agency protection.
- Trump’s $TRUMP token peaked at $15B but dropped quickly, a common trend in meme coins.
- Cryptocurrency regulations are easing as traditional financial institutions enter the digital asset space.
The SEC has determined it will not regulate meme coins, including the TRUMP token issued by President Donald Trump. CNBC reports that Hester Peirce, SEC commissioner, stated the agency would not be responsible for regulating these assets. The decision came in February, after Trump’s announcement of his meme coin boosted its value rapidly. The SEC will not protect investors in the bribery realm.
According to Peirce, the appearance of non-fungible tokens (NFTs) in 2021 was similar to the case of DeFi, since they were not considered securities. She noted that the SEC passed up an opportunity to make its position on meme coins known to the public. Peirce made it clear in a recent interview at Bitcoin 2025 that SEC oversight should not be expected. The agency decided not to get involved in meme coin markets.
Crypto Regulation Shift
The attention to Trump’s TRUMP token grew quickly after its launch in January. It was Trump’s social media activity that caused the token’s market cap to grow to $15 billion. Nevertheless, the token soon dropped in value, a common issue with meme coins. Makers of NFTs can still make money from trading fees, even as the coin’s price fluctuates.
The SEC’s decision is consistent with efforts overall by the current administration to ease cryptocurrency rules. Since Trump became president, the SEC has scaled back numerous enforcement actions related to cryptocurrencies. The change has led to some concern, since Trump’s family is now making more moves in the crypto world. Democratic politicians have pointed out concerns about possible conflicts of interest.
While there are no clear rules, the crypto market is still doing well. At the end of March, the SEC dropped its legal action against Binance, one of the biggest crypto exchanges. Binance has faced allegations that it misled customers and handled their money improperly. Despite the legal settlement of CEO Changpeng Zhao, Binance is still an important player and its influence keeps getting stronger.
SEC’s Evolving Regulatory Approach
Peirce said she didn’t believe that political interests influenced the SEC’s behavior. She said that making clear rules for cryptocurrencies was still in progress. Peirce explained that we are creating rules and making sure they are upheld. She stated that investors must be able to understand clearly what is allowed and no decisions should be made just for political benefit.
The SEC removed a rule earlier this year that prevented traditional banks from starting crypto custody services. The agency is simply confirming its commitment to update its regulations when the digital currency market evolves.
