🚨🚨Meme Coins Aren't Securities, More Like Collectibles: US SEC Confirms🚨🚨
The US Securities and Exchange Commission (SEC) published a on Thursday confirming that meme coins don't fall under securities.
The guidance comes as an effort to provide greater clarity on federal securities laws' application on the burgeoning meme coin sector.
"[Meme coins] do not involve the offer and sale of securities under the federal securities laws," the agency confirmed. "As such, persons who participate in the offer and sale of meme coins do not need to register their transactions with the Commission."
Further, the commission stressed that buyers and holders of these coins aren't protected by federal securities laws.
Meme Coins are crypto assets based on viral internet memes or inside jokes. The SEC's Division of Corporation Finance says that these "typically have limited or no use or functionality.
As a result, these asset classes do not meet the definition of an "investment contract" under the security-defined Howey Test. Regulator Classifies Meme Coins Under Collectibles.
The agency explained that these crypto value depends on speculative trading and the collective market sentiment, "like a collectible."
