The best American securities regulator officially announces that Memecoins does not fall under his authority, whereby the fast-growing crypto sector is compared with the items of “non-functional” collector.
In a new statement, the US Securities and Exchange Commission (SEC) states that Memecoins are officially no effects.
As defined by the statement of the sec,
“A ‘meme coin’ is a type of crypto -activum inspired on internet memes, characters, current events or trends for which the promoter wants to attract an enthusiastic online community to buy the Meme Munt and enter into the trade.”
The SEC says that Memecoins are more like gathering objects and entertainment items than effects.
According to the SEC Memecoins the Howey test, a litmus test to decide whether something is a security or not.
“First of all, Meme Coin buyers do not invest in a company. This means that their funds are not combined together to be deployed by promoters or other third parties for the development of the currency or a related company.
Secondly, every expectation of profit that buyers of Meme Coins have not derived from the efforts of others. That is, the value of meme coins is derived from speculative trade and the collective sentiment of the market, such as a collective object. “
The official statement of the SEC reflects comments from Commissioner Hester Peirce about Memecoins earlier this month.
“Only because there is something that is there and it is popular does not mean that it fits within SEC jurisdiction. So I just warn people not to assume that there will be a sec -controlling backstop for everything … “
The explanation comes on the heels of a revision at the regulatory body. In addition to the consolidation and creating a new crypto-task force, the Cyber and Emerging Technologies Unit (CETU), the SEC also dropped various high-profile studies such as February, including studies into Coinbase, Robinhood, OpenSea and Metamask.
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Generated image: midjourney