Hester Peirce, the head of the SEC’s crypto task force, recently stated that meme coins like TRUMP are likely outside the SEC's jurisdiction. Meme coins, typically linked to internet memes or celebrities, are increasingly popular but don’t fit the characteristics of traditional cryptocurrencies like Bitcoin and Ethereum.
Meme coins like TRUMP saw wild fluctuations in value. TRUMP, for instance, surged to over $73 before Trump's inauguration but has since dropped by 80%. These coins are speculative and highly volatile, raising questions about whether they should be classified as securities.
Known as "Crypto Mom," Peirce advocates for minimal government interference in crypto innovation. Unlike former SEC Chair Gary Gensler’s more aggressive stance, Peirce supports a more hands-off approach to encourage experimentation without stifling growth in the crypto market. .
Peirce’s comments signal a shift in regulatory approach. While established assets like Bitcoin will remain under SEC oversight, newer, speculative meme coins may not. The SEC’s evolving stance will need to balance innovation with protecting investors from market volatility.