The U.S. Securities and Exchange Commission (SEC) has officially pulled back from overseeing memecoins, effectively leaving traders and investors to navigate the volatile space without regulatory guidance. SEC Commissioner Hester Peirce stated this week that tokens like $TRUMP—a memecoin tied to President Donald Trump’s growing crypto empire—will not be classified as securities, nor subject to enforcement.
This development marks a sharp departure from the SEC’s previously aggressive stance on crypto under prior administrations. Under President Trump, the regulatory agency is shifting toward a more laissez-faire approach, allowing the market to dictate the value and direction of meme coins. The move comes as the $TRUMP token—at one point valued at $15 billion—faces scrutiny over insider holdings. Reports indicate that over 80% of the token supply is controlled by Trump-affiliated entities.
Commissioner Peirce drew comparisons between memecoins and the 2021 NFT boom, emphasizing the need for clarity. “Here was something where I saw a lot of interest… and it made sense for us to say, ‘People, if you are expecting SEC protection around these, you should not expect that,’” she told CNBC. According to Peirce, the SEC missed an opportunity to educate the public during the NFT surge and does not intend to make the same mistake again—by misleading investors into a false sense of protection.
This relaxed posture raises concerns among Democratic lawmakers, particularly around potential conflicts of interest. Senator Richard Blumenthal and others have questioned the ethics of a sitting president and his family profiting from a financial asset now deliberately placed outside federal regulatory oversight. Critics argue that the Trump administration’s policies benefit its own financial interests at the expense of investor protections.
While the SEC is distancing itself from memecoins, Peirce reminded market participants that any asset can be structured as a security, depending on how it’s marketed and sold. However, the agency has chosen not to pursue blanket enforcement against meme tokens—effectively creating a regulatory grey zone. This move is seen by many as aligning with Trump’s broader “America First” economic platform, which includes support for digital assets and the privatization of financial innovation.
As the crypto industry absorbs this shift, investors are urged to proceed with caution. The lack of oversight means the risks of manipulation, rug pulls, and insider trading are elevated. For the latest updates on SEC policy, crypto regulation, and market trends, visit TheCoinInfo.
