SEC's Peirce on Trump, Melania Memecoins: "Not Our Jurisdiction"

In a recent interview with Bloomberg, Hester Peirce, the head of the U.S. Securities and Exchange Commission's (SEC) cryptocurrency task force, was asked about the launches of memecoins by President Donald Trump and First Lady Melania Trump. The question was whether these cryptocurrencies would make the SEC's oversight of the cryptocurrency industry more difficult. Peirce, affectionately known as "Crypto Mom," replied that many memecoins flooding the market may not fall under the agency's jurisdiction.

Peirce stated, "We always have to look at the facts and circumstances, but many of the meme coins that are out there probably do not have a home in the SEC on our current set of regulations." She suggested that Congress or the Commodity Futures Trading Commission (CFTC) could intervene and address the grey area if they wanted to.



The SEC's stance on memecoins could have significant implications for the crypto market. Memecoins, unlike cryptocurrencies like bitcoin and ether, have no inherent value. Industry figures have long argued that these tokens should not be regulated as securities, comparing them to digital collectibles like beanie babies or baseball cards. Peirce's hands-off stance represents a shift from the SEC's previous approach under former Chairman Gary Gensler, who frequently asserted that all crypto tokens aside from Bitcoin were securities.

Acting Chair Mark Uyeda recently announced the formation of a new Crypto Task Force, led by Peirce, signaling a shift away from the so-called "regulation by enforcement" practiced by Gensler. The task force's top priorities include resolving the question of what makes a crypto asset a security versus a commodity and creating a more viable path to registration by modifying the SEC's existing paths.

Peirce has previously expressed her views on memecoins, stating that individuals should be free to make their own decisions but should not expect the government to bail them out if their investments do not pan out. She believes that people should be aware of the risks associated with these tokens and make informed decisions accordingly.

In conclusion, the SEC's new approach to crypto regulation, led by Peirce, could have a significant impact on the growth and development of the crypto industry, particularly in relation to memecoins and other similar assets. While this approach may encourage innovation and experimentation, it also carries risks that investors and the industry should be aware of. As the regulatory landscape continues to evolve, it will be crucial for investors to stay informed and make well-considered decisions about their investments in the crypto market.