SEC Commissioner Hester Peirce Says Many Meme Coins Probably Aren't Under the Agency's Jurisdiction

Commissioner of the US Securities and Exchange Commission (SEC) Hester Peirce addressed the regulatory status of meme coins, saying many of these digital tokens likely do not fall under the SEC's jurisdiction.

The Commissioner of the US Securities and Exchange Commission (SEC), Hester Peirce, has addressed the regulatory status of meme coins, stating that many of these digital tokens do not fall under the SEC's jurisdiction.

In an interview with Bloomberg, Peirce said that many meme coins, despite flooding the market, lack the characteristics that would subject them to current SEC rules.

“Many of the meme coins that are out there probably do not have a home in the SEC under our current set of regulations,” Peirce stated. “If Congress wants to address that, they can do that; maybe something that the CFTC wants to address, but many of those, I think, probably are not under our jurisdiction.”

Peirce went on to say that individuals should be permitted to invest in tokens without government interference but also should be prepared for the possibility that the value of such tokens might eventually drop.

“If people want to buy a token or product that lacks a clear long-term value proposition, they should feel free, but they should not be surprised if the price drops,” she said.

For the unversed, memecoins are a type of cryptocurrency inspired by internet memes, jokes, or popular culture. They don’t offer technological advancements but instead rely on community support and celebrity endorsements to gain popularity. Popular examples of memecoins include Dogecoin and Shiba Inu.

Meme Coin Volatility and Investor Losses

Peirce's comments come as meme coins like $TRUMP, which was launched in January 2025, experience sharp market swings. $TRUMP fell 80% from its peak, causing significant losses for investors.

According to a New York Times report, 813,000 wallets lost $2 billion after buying $TRUMP.

Her approach signals a shift from the SEC's earlier position under former chairman Gary Gensler, who maintained that most cryptocurrencies, aside from Bitcoin, belong to the securities category. Peirce, who is known as “Crypto Mom” for her pro-crypto views, now heads the SEC's new crypto task force and has outlined a plan to set clearer rules for the crypto industry.

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