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The Securities and Exchange Commission issuedguidanceon Thursday saying it does not view most meme coins , which are crypto tokens that originated from memes , as security department under United States federal police force .
As a outcome , the SEC say it does not consider people who buy or hold meme coins are protect by federal securities law and that citizenry “ who participate in the offering and cut-rate sale of meme coins do not need to record their transactions with the Commission . ”
The SEC ’s newfangled guidance comes rough a month into U.S. president Donald Trump ’s 2d term , in which Trump issued an executive rules of order to create the Department of Government Efficiency , head by Elon Musk , an independent government advisory way that ’s name after the meme coin Dogecoin .
President Trump also launched a meme coin for his help , called $ TRUMP , just days before his inaugural . Since its peak on January 19 , the coin has lose $ 12 billion in value , The Telegraph reportedon Thursday .
Mark Uyeda , the SEC chairman appointed by Trump in January , antecedently signaled he would make readable regulatory lines around cryptocurrencies . On Uyeda ’s first Clarence Shepard Day Jr. in post , he announced the organization of acryptocurrency task military force .
Uyeda ’s SEC argues that meme coin are not securities in its view , because they do “ not generate a yield or convey right to succeeding income , earnings , or assets of a business . ” Rather , the Commission says it views meme coin more like collectibles .
Thursday ’s steering on meme coin represents a stark contract compared to how the SEC see meme coins under its former chairman , Gary Gensler . Gensler repeatedlycalled for crypto tokens , including meme coin , to be treated as securities , and told crypto religious service provider to proactively cross-file with the SEC .
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Also on Thursday , the SEC announced itdismissed its case against Coinbase , the United States ’ big cryptocurrency exchange .
“ For the last several yr , the Commission ’s views on crypto have been largely express through enforcement actions without engaging the general world , ” said Uyeda in a assertion . “ It ’s time for the Commission to rectify its glide path and grow crypto insurance in a more vaporous way . ”
