US Securities and Exchange Commission (SEC) Commissioner Hester Peirce has acknowledged that the financial regulator may not have the authority to regulate most memecoins.In a Feb. 11 Bloomberg interview, the financial regulator pointed out that current laws do not classify these tokens as securities, leaving a gap in oversight.According to her:“There are lots of people introducing memecoins right now [and] facts and circumstances matter. But many of the memecoins that are out there probably do not have a home in the SEC under our current set of regulations.”Peirce suggested that Congress may need to introduce legislation to clarify the regulatory landscape. She also noted that the Commodity Futures Trading Commission (CFTC) could oversee these assets.Collectibles?White House crypto advisor David Sacks suggested that memecoins should be classified as collectibles rather than financial securities.According to him, these assets derive their value from market sentiment rather than investment contracts.He noted:“[Memecoins are] collectibles. It’s like a baseball card or a stamp. People buy it because they want to commemorate something.”ETF Store President Nate Geraci echoed this sentiment, arguing that memecoins do not fall under the SEC’s securities definition. He also likened the assets to digital collectibles.Geraci said:“Memecoins [are] more akin to collectibles IMO.”Rising memecoin interestOver the past year, memecoins have surged in popularity despite their speculative nature. Often inspired by internet culture or public figures, these tokens rarely promise any intrinsic value.The popularity of these assets is evidenced by the fact that US President Donald Trump and his wife, Melania, have each launched their memecoin. More recently, the Central African Republic also issued its own token, CAR, on the Solana-based Pump.fun platform.Due to this, crypto influencer Ansem believes memecoins will remain a key part of the digital asset space. He emphasized that social trends and internet virality fuel their popularity.He added:“Memecoins will never die because social trends & virality online are such large drivers of attention for the cohort of people trading these markets – so will always have their own sector.”Mentioned in this article EditorLiam ‘Akiba’ Wright Editor-in-Chief at CryptoSlate Also known as “Akiba,” Liam Wright is the Editor-in-Chief at CryptoSlate and host of the SlateCast. He believes that decentralized technology has the potential to make widespread positive change.Disclaimer: Our writers’ opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.
