SEC Commissioner dissents on agency’s memecoin stance

US Securities and Exchange Commission Commissioner Caroline Crenshaw issued a dissenting sentiment connected the SEC’s caller stance that memecoins are not securities.

According to the commissioner’s Feb. 27 statement, memecoins could fulfill the Howey test’s information of profiting from the managerial efforts of others owed to the coordination betwixt developer teams and promoters.

The commissioner added that most, if not all, cryptocurrencies could beryllium defined arsenic memecoins under the SEC’s caller guidance, which was released connected the aforesaid day. In this guidance, the bureau stated that memecoins correspond online societal trends with speculative worth and precocious volatility — and are not securities. Commissioner Crenshaw, however, has a antithetic viewpoint:

“Today’s connection paints meme coins arsenic taste projects whose intent is amusement and societal engagement. The world is that meme coins, similar immoderate fiscal product, are issued to marque money.”

Memecoins person travel into sharper absorption pursuing respective high-profile scams, hacks and adjacent statesmanlike memecoin launches that threaten the semipermanent viability of the assemblage and invitation scrutiny from authorities officials.

Official TRUMP token terms enactment collapsed dramatically soon pursuing its launch. Source: TradingView

Related: Solana’s token minting frenzy loses steam arsenic memecoins get torched

US regulators and lawmakers effort to reign successful memecoins

Following US President Donald Trump’s memecoin launch, respective Democrat lawmakers, including Elizabeth Warren, called for an investigation into imaginable morals violations of the statesmanlike token.

On Feb. 27, California Member of Congress Sam Liccardo announced that House Democrats are prepping a measure that would ban statesmanlike memecoins.

The projected bill, titled “The Modern Emoluments and Malfeasance Enforcement (MEME) Act,” would prohibit US lawmakers from sponsoring, issuing oregon endorsing immoderate integer asset.

Moreover, spouses and dependents of US representatives, the president, vice president and elder enforcement subdivision officials are besides prohibited from issuing oregon sponsoring memecoins nether the bill.

Attorney Elizabeth Davis, erstwhile main lawyer astatine the Commodity Futures Trading Commission (CFTC), precocious argued that memecoins should beryllium regulated by the CFTC.

Davis told Cointelegraph that if the commodities regulator is granted regulatory oversight implicit crypto, past determination is simply a beardown likelihood that memecoins volition beryllium included successful their purview.

The lawyer besides expressed assurance that broad memecoin regulations would beryllium established successful the United States implicit the adjacent twelvemonth — putting an extremity to the regulatory ambiguity surrounding societal tokens.

Magazine: Memecoins: Betrayal of crypto’s ideals… oregon its existent purpose?