U.S. SEC Qualifies: Memecoins Are Not Securities, Investors Must Bear Risks

ChainCatcher News, the U.S. Securities and Exchange Commission (SEC) Division of Corporation Finance has released guidance on memecoins, stating that they are not considered securities but are similar to collectibles.

The division believes that the transactions involving memecoins described in the guidance do not involve the issuance and sale of securities as defined by federal securities laws. Therefore, individuals participating in the issuance and sale of memecoins are not required to register their transactions with the Commission under the Securities Act of 1933, nor do they need to comply with the registration exemption provisions in the Securities Act. As a result, purchasers or holders of memecoins are not protected by federal securities laws.