"Trump's TRUMP Token Plunges, SEC Commissioner Clarifies Jurisdiction"

Memecoins, a type of cryptocurrency inspired by internet memes, jokes, or cultural references, have been making headlines recently, particularly with the launch of US President Donald Trump's Official Trump (TRUMP) token. According to SEC Commissioner Hester Peirce, these memecoins are not under the jurisdiction of the Securities and Exchange Commission (SEC).

Amid reports of significant losses by investors in the TRUMP memecoin, Peirce clarified the SEC's stance on these digital assets. In an interview with Bloomberg, she stated that most memecoins, including TRUMP and First Lady Melania Trump's Official Melania Meme (MELANIA), do not fall under the SEC's purview. Peirce suggested that the regulation of memecoins might be a matter for Congress or other agencies to consider.

The same day as Peirce's comments, The New York Times reported massive losses by TRUMP memecoin investors. Citing data from blockchain intelligence firm Chainalysis, the report highlighted that at least 813,000 crypto wallets lost a total of $2 billion after buying TRUMP. Launched on Jan. 17, TRUMP has plummeted about 80% since peaking at $72.60 on Jan. 19, with its market capitalization shrinking from $14.5 billion to $3 billion at the time of writing.

While TRUMP investors have suffered billions in losses, the Trump Organization and its partners have reportedly earned $100 million in trading fees. Industry analysts have weighed in on the regulatory status of memecoins. ETF Store president Nate Geraci supported Peirce's perspective, stating that memecoins are more akin to collectibles. Macroeconomist Lyn Alden compared memecoins to trends like initial coin offerings (ICOs) and non-fungible tokens (NFTs), noting the cyclical patterns in the cryptocurrency market.