- SEC confirms $TRUMP token not a security.
- Investors lack traditional protection measures.
- Meme coin market exceeds $62 billion capitalization.
SEC Commissioner Hester Peirce announced that the $TRUMP token does not fall under the agency’s regulatory jurisdiction at the Bitcoin 2025 event in Las Vegas.
Meme coins like $TRUMP operate outside SEC regulations, affecting investor protection and market oversight.
Commissioner Peirce stated meme coins, including the $TRUMP token, do not qualify as securities, emphasizing the lack of oversight. Given ethical concerns, especially with 80% token control by Trump-affiliated entities, this raises conflict of interest issues.
“Investors in tokens like $TRUMP should not expect traditional protective measures from the SEC.” — Hester Peirce, Commissioner, SEC
Without the traditional regulatory safety nets, investors face elevated risks of fraud and market manipulation. The SEC’s stance frees meme coins from securities law but leaves investors more exposed to volatility and unchecked market activities.
While meme coins thrive in a vibrant niche worth over $62 billion, investors should be aware of the unique risks involved. This approach is reminiscent of the NFT market boom seen in 2021, with similar implications for rapid gains and losses.
Considerations should be made about the concentrated ownership of the $TRUMP token, raising concerns about potential manipulative practices in the market. Investors are advised to assess the risk profiles in memes compared to more regulated financial instruments.
