SEC Calls Doge, Pepe, Shiba Inu, TRUMP Non- Securities
The Securities and Exchange Commission clarified meme coins like Doge, Pepe, and Shiba Inu are exempt from federal securities laws in an official statement on its website.
Politicians and their families are not allowed to create meme coins, according to a Modern Emoluments and Malfeasance Enforcement (MEME) bill that House Democrats are trying to introduce.
the SEC’s Division of Corporation Finance said meme coins are not securities under federal law.
The SEC emphasized, “The Division believes that transactions involving the kinds of meme coins mentioned in this statement do not entail the offering and sale of securities under the federal securities laws.”.
The agency explained that the Securities Act of 1933 does not apply to meme coins because of their nature.
‘Meme coins are classified as “collectibles” purchased for amusement and social interaction because they do not fit under any common financial instruments listed in securities laws.”
It added that speculation and market demand are the main drivers of this class of cryptocurrencies.
Consequently, the agency clarified that federal securities laws do not impose any obligations on meme coin participants or holders.
The financial watchdog further stated that individuals who engage in the offering and sale of meme coins do not have to register their transactions with the Commission under the Securities Act of 1933 (“Securities Act“) or are exempt from registration requirements under the Securities Act.”.
The SEC concluded that “other federal or state agencies may take enforcement action or prosecute individuals for engaging in fraudulent conduct related to the offer and sale of meme coins under other federal and state laws.”.
House Democrats intend to introduce a new bill that would forbid politicians and their families from issuing meme coins, which coincides with the SEC’s statement.
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