Hester Peirce, a commissioner at the U.S. Securities and Exchange Commission (SEC), has stated that memecoins, including the TRUMP token, do not fall under the SEC’s regulation. Her comments come as investors in the TRUMP memecoin have lost nearly $2 billion.TRUMP Token Crashes 80% as Investors Suffer Heavy LossesMemecoins Are “More Like Collectibles,” Say Analysts
Memecoins, including the TRUMP token, do not fall under the regulatory oversight of the U.S.SEC, according to Commissioner Hester Peirce. Source: Bloomberg
In an interview with Bloomberg on Feb. 11, Peirce said that most memecoins are not covered by the SEC’s current rules. She added that if any regulation is needed, it would have to come from Congress or other government agencies, such as the Commodity Futures Trading Commission (CFTC).
“Many of the memecoins that are out there probably do not have a home in the SEC under our current set of regulations,” Peirce said.
TRUMP Token Crashes 80% as Investors Suffer Heavy Losses
Peirce’s statement came when TRUMP memecoin investors have suffered massive losses. According to blockchain intelligence firm Chainalysis, at least 813,000 crypto wallets collectively lost $2 billion after buying TRUMP.
The token, launched on Jan. 17, saw its price peak at $72.60 on Jan. 19 before dropping nearly 80%. As a result, its market capitalization fell from $14.5 billion to around $3 billion, according to CoinGecko data.
TRUMP memecoin price chart since launch on Jan. 17. Source: CoinGecko
While investors have suffered major losses, reports indicate that the Trump Organization and its partners have earned $100 million in trading fees from the token’s activity.
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Memecoins Are “More Like Collectibles,” Say Analysts
Memecoins are cryptocurrencies inspired by internet jokes, memes, or pop culture references. Unlike Bitcoin or Ethereum, which offer technological innovation, these tokens rely largely on hype, community engagement, and celebrity endorsements for their value.
SEC Commissioner Peirce reinforced the view that the agency is not responsible for policing these types of tokens, emphasizing that their regulation falls outside the SEC’s domain.
If that’s something that Congress wants to address, they can do that. Maybe that’s something the CFTC wants to address.
Peirce said.
Some financial experts support Peirce’s stance. ETF Store president Nate Geraci compared memecoins to collectibles rather than financial assets.
Nate Geraci compared memecoins to collectibles and not financial assets. Source: X
Meanwhile, macroeconomist Lyn Alden compared the memecoin frenzy to past speculative trends in crypto markets, such as Initial Coin Offerings (ICOs) and Non-Fungible Tokens (NFTs).
According to Alden, traditional finance (TradFi) skeptics who previously dismissed Bitcoin over ICOs, DeFi, and NFTs are now rejecting it due to memecoins—despite the possibility of investing and outperforming their own portfolios.
