SEC Declares Memecoins Safe, But Watch Out for the Fraudsters! 😂💸

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In a rather audacious proclamation, the US Securities and Exchange Commission has declared that memecoins are not securities. Yes, you heard it right! They’ve likened these digital trinkets to collectibles, much like your grandmother’s porcelain cat collection. 🐱

According to the agency’s Division of Corporation Finance, memecoins “do not involve the offer and sale of securities under the federal securities laws.” So, if you’ve been hoarding these digital baubles, rejoice! You needn’t bother with the Commission’s paperwork. 🎉

However, the SEC did throw in a cheeky caveat: while you may frolic freely with your memecoins, don’t expect the warm embrace of US securities laws. If you happen to stumble upon a fraudulent token, well, that’s a different kettle of fish, and other regulators might come knocking. 🚪

In a statement that could only be described as a masterclass in bureaucratic clarity, the SEC aimed to shed light on the murky waters of crypto assets. Meanwhile, President Donald Trump has been busy trimming the SEC’s regulatory wings, perhaps in a bid to make his memecoin dreams come true. 🦅

Just days before taking office, Trump and First Lady Melania launched their own memecoins, sparking a delightful uproar among crypto enthusiasts and critics alike. Who knew that the path to the White House was paved with digital coins? 💰

As for the performance of these tokens, it appears that Official Trump (TRUMP) has plummeted nearly 83% from its peak, while Melania Meme (MELANIA) has nosedived a staggering 93.5%. Talk about a volatile market! 📉

The SEC further elaborated that memecoins “typically have limited or no use or functionality” and are prone to wild price swings. In other words, they’re about as stable as a cat on a hot tin roof. 🐾

In a rather amusing twist, the SEC clarified that memecoins don’t fit the definition of “investment contracts” under the Howey test. Apparently, investing in meme coins doesn’t involve a reasonable expectation of profits from the hard work of others. Shocking, I know! 😲

“In other words, a meme coin is not itself a security.”

But fear not! The SEC assures us that their statement doesn’t apply to memecoins that might be trying to masquerade as something more legitimate. They’ll be keeping a watchful eye on the economic realities of these transactions. 👀

X Hall of Flame: Memecoins will die and DeFi will rise again — Sasha Ivanov

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2025-02-28 02:38