US Securities and Change Fee Commissioner Caroline Crenshaw issued a dissenting opinion on the SEC’s current stance that memecoins are usually not securities.
In line with the commissioner’s Feb. 27 statement, memecoins might fulfill the Howey check’s situation of cashing in on the managerial efforts of others because of the coordination between developer groups and promoters.
The commissioner added that almost all, if not all, cryptocurrencies may very well be outlined as memecoins under the SEC’s recent guidance, which was launched on the identical day. On this steering, the company acknowledged that memecoins signify on-line social traits with speculative worth and excessive volatility — and are usually not securities. Commissioner Crenshaw, nevertheless, has a unique viewpoint:
“In the present day’s assertion paints meme cash as cultural tasks whose objective is leisure and social engagement. The fact is that meme cash, like every monetary product, are issued to earn money.”
Memecoins have come into sharper focus following a number of high-profile scams, hacks and even presidential memecoin launches that threaten the long-term viability of the sector and invite scrutiny from state officers.
Official TRUMP token worth motion collapsed dramatically shortly following its launch. Supply: TradingView
Associated: Solana’s token minting frenzy loses steam as memecoins get torched
US regulators and lawmakers try to reign in memecoins
Following US President Donald Trump’s memecoin launch, a number of Democrat lawmakers, together with Elizabeth Warren, called for an investigation into potential ethics violations of the presidential token.
On Feb. 27, California Member of Congress Sam Liccardo introduced that Home Democrats are prepping a invoice that may ban presidential memecoins.
The proposed invoice, titled “The Trendy Emoluments and Malfeasance Enforcement (MEME) Act,” would prohibit US lawmakers from sponsoring, issuing or endorsing any digital asset.
Furthermore, spouses and dependents of US representatives, the president, vp and senior govt department officers are additionally prohibited from issuing or sponsoring memecoins beneath the invoice.
Lawyer Elizabeth Davis, former chief lawyer on the Commodity Futures Buying and selling Fee (CFTC), not too long ago argued that memecoins should be regulated by the CFTC.
Davis advised Cointelegraph that if the commodities regulator is granted regulatory oversight over crypto, then there's a sturdy probability that memecoins can be included of their purview.
The lawyer additionally expressed confidence that complete memecoin rules can be established in the USA over the following 12 months — placing an finish to the regulatory ambiguity surrounding social tokens.
Journal: Memecoins: Betrayal of crypto’s ideals… or its true purpose?
