SEC Commissioner Pierce: Memecoins are unlikely to come under the jurisdiction of regulators

Author: Mat Di Salvo, Decrypt; Compiler: Deng Tong, Golden Finance

The head of the SEC's newly formed cryptocurrency working group said that Meme coins are unlikely to fall under the regulator's jurisdiction.

In an interview with Bloomberg on Tuesday, SEC Commissioner Hester Peirce was asked about President Donald Trump and his wife's official meme coins TRUMP and MELANIA, and whether such cryptocurrencies fall under the agency's jurisdiction.

The new head of the SEC's cryptocurrency working group said such assets may not fall under the agency's jurisdiction. President Donald Trump launched his own Solana-based meme token TRUMP before his inauguration on January 20, and Melania Trump followed suit with her own token.

"There are a lot of people launching meme coins now," Peirce said. "But under our current regulations, many meme coins may not find a footing at the SEC."

Meme coins are cryptocurrencies based on internet jokes and subcultures, public figures, and more. Such assets are minted quickly and can soar in value in an instant, but can also collapse just as quickly. Some traders have made amazing gains by buying and selling them, but others may lose a lot when they suddenly become worthless.

Trump soared to a high of more than $73 the day before the presidential inauguration, but has since fallen sharply in value. Its price is currently $15.42, nearly 80% below that record, according to CoinGecko.

Commissioner Pierce said last week that regulators are struggling to decide which cryptocurrencies should be considered securities and taking a different approach from the previous administration's approach to regulating the space.

The SEC has taken a tough stance on the cryptocurrency space under President Joe Biden, with former Chairman Gary Gensler, a Biden appointee, frequently suing large cryptocurrency companies for allegedly selling unregistered securities.

Despite the SEC's previous actions, Commissioner Pierce has earned the nickname "Crypto Mom" ​​for her friendly approach to the space. She is expected to be less hostile to companies in the industry, especially as President Donald Trump pledges to help the space thrive.

She said in an interview on Tuesday that she would not describe herself as an advocate for the industry but rather a "liberal extremist."

"For someone who believes that government is there to serve the American people, not to stand in their way as they try new things, the past few years of cryptocurrency have been extremely frustrating," she added.