White House in the memecoin business — and the SEC’s not watching

by

Ah, the grand spectacle of American finance, where the U.S. Securities and Exchange Commission, that venerable guardian of investor sanity, has decided to take a leisurely stroll away from the chaotic carnival of memecoins. Yes, dear reader, you heard it right! Investors are now left to navigate the wild waters of volatile tokens like \$TRUMP — a memecoin that dances hand-in-hand with the illustrious President Donald Trump and his ever-expanding crypto kingdom. 🤑

In a recent tête-à-tête, SEC Commissioner Hester Peirce, with all the gravitas of a cat contemplating a sunbeam, made it abundantly clear: these tokens are not securities, and the SEC will not be your knight in shining armor. So, if you were hoping for a safety net, well, it seems you’ll have to knit one yourself! 🧶

This delightful turn of events highlights a rather theatrical shift in Washington’s crypto choreography under Trump, whose own token once soared to a dizzying \$15 billion market cap before plummeting like a lead balloon. With a staggering 80% of \$TRUMP reportedly nestled in the warm embrace of Trump-affiliated entities, critics are raising their eyebrows higher than a cat on a hot tin roof, warning of glaring conflicts of interest and a regulatory vacuum that would make even a black hole blush. 🚀

Peirce compares meme coins to NFT market dynamics

In a tête-à-tête with CNBC, Peirce likened the current memecoin hullabaloo to the NFT frenzy of 2021. She noted that while NFTs were not classified as securities, they still experienced price fluctuations that could make a rollercoaster look like a kiddie ride. 🎢 The commissioner lamented the SEC’s missed opportunity to provide clearer guidance during that wild ride.

“Here was something where I saw a lot of interest in this out in the world — in meme coins — and it made sense for us to say, ‘People, if you are expecting that there’s SEC protection around these, you should not expect that,’” Peirce quipped, perhaps with a twinkle in her eye. ✨

She emphasized that while virtually any asset can be dressed up as a securities transaction, investors should be aware that meme coins frolic outside the traditional regulatory safeguards. Her message was as clear as a bell: proceed with full awareness of the risks involved, folks! 🎩

Since Trump’s inauguration, the SEC has adopted a new dance style in the cryptocurrency enforcement ball, moving away from the aggressive tango of the previous administration. 💃

Democratic lawmakers, including the ever-vigilant Senator Richard Blumenthal of Connecticut, have raised concerns about potential conflicts of interest stemming from the Trump family’s crypto holdings. Because, of course, what’s a little family profit without a dash of controversy? 🍿

Peirce, ever the defender of the agency’s evolving approach, cited the absence of clear regulatory frameworks during earlier enforcement actions. “We didn’t have a clear set of rules,” she explained, as if that were a perfectly reasonable excuse for the chaos that ensued. 🤷‍♀️

Read More

2025-05-31 19:28