SEC Commissioner Hester Peirce: TRUMP and Other Meme Coins Not Protected by SEC, Investors Should Be Aware of the Risks

BlockBeats News, May 31. Recently, U.S. Securities and Exchange Commission (SEC) Commissioner Hester Peirce stated that since the SEC is no longer regulating Meme coins, investors should not expect regulatory guidance for tokens such as TRUMP.

In February of this year, the SEC announced that most Meme coins are not considered securities under U.S. federal law. This decision was made just as Trump launched his own Meme coin, which quickly skyrocketed, causing his net worth to surge by billions of dollars and placing such crypto assets outside the SEC's regulatory scope.

Hester Peirce stated that this situation is similar to the craze around NFTs in 2021: even though they are not securities, their prices are still influenced by investor market activity. She believes that at that time the SEC missed the opportunity to make a public statement of non-intervention. People should know that Meme coins should not rely on SEC protection, in other words, buyers should be prepared to take on risks themselves when making a purchase.