🐶 In February 2025, the U.S. Securities and Exchange Commission (SEC) released a statement clarifying the status of memecoins on the crypto market. According to the regulator, memecoins do not fall under the definition of securities, which means they don’t require registration and aren’t subject to federal securities laws.
The SEC emphasized that memecoins are typically not backed by assets, not tied to investment activities, and their value is driven solely by market demand — comparing them to collectible items.
However, SEC Commissioner Caroline Crenshaw raised concerns about this stance, pointing out that memecoins, like any financial product, are often launched with profit in mind.
Following the announcement, the memecoin market saw a sharp decline: the sector’s market cap dropped by over 11%, falling below $52 billion. Many popular memecoins lost between 8% to 15% in value within 24 hours.
Overall, the SEC’s clarification gives market participants a better understanding of memecoins’ regulatory status, but also highlights the lack of investor protection under federal securities laws.
