The US SEC says that MeMe currencies are not securities, and compare them with “holdings”
Meme currencies may not fall within the framework of the American Securities and Stock Exchange Committee, as the agency considers that most Meme coins are more likely to hold in the securities.
According to the February 27 staff from the Committee’s Institutional Finance Department, Meme currencies may not be qualified as securities because they do not meet the Howey test, a legal criterion submitted by the Supreme Court in 1946 to determine whether the transaction is an investment contract under US Securities Laws.
SEC wants to provide “greater clarity on the application of federal securities laws to encryption assets” by clarifying its position.
Metal currencies such as “holdings”
By rationalizing his views, the organizer said that the Meme currencies lack the main elements of safety, especially investing in a joint institution where the profits come from “the efforts made or administrative to others.”
Instead, the committee looks at Mimi currencies driven by “demand for market and speculation”, with noise -related value instead of organizing business growth. Unlike traditional investments, they do not give financial rights, such as ownership or profits.
It reads an excerpt from the SEC statement:
Although individual Meme currencies may have unique features, Meme coins usually share certain properties. MEME currencies are usually purchased for entertainment, social interaction and cultural purposes, and their value is primarily in demand in the market and speculation.
Moreover, SEC noted that Meme currencies are not commensurate with “any of the common financial tools mentioned specifically in the definition of” security “, such as stocks or bonds. Unlike traditional investments, they do not generate the return or provide rights for” income, profits or future business assets. “
Since their commercial activity does not involve an investment in the institution, and that buyers do not have “reasonable expectations of profits that are derived from direct or administrative efforts of others”, SEC stated that Meme currencies fail to meet the criteria for the Howwe’s test to the investment contract and we conclude that “Mimi is not itself security.”
Follow the statement:
People who participate in the offer and sale of metal currencies do not need to register their transactions with the committee under the Securities Law of 1933 or fall within one of the exemptions of the Securities Law from registration. Accordingly, the Mimi currency buyers or federal securities law holders are not protected.
However, the committee warned that its position does not cover all the distinctive symbols in the name of coins. Any project that hides itself as a coin while working as safety still can face scrutiny.
The Supreme Education Council also said that its views are not “a rule, regulation, instructions, or statement” of the committee itself and emphasized that the statement carries “any force or legal influence.”
Instead, the organizer wants to provide “greater clarity on the application of federal securities laws to the assets of encryption” by clarifying its position.
Meme currencies have become a hot topic
With the distinctive symbols such as the official Trump (Trump), which was launched by US President Donald Trump and Miliana Mimi (Melania), which has been significantly disrupted of its high prices at all, concerns about the unorganized nature of the market were raised.
As mentioned earlier by InvezzOn the same day, Democrats in the House of Representatives submitted the law of birth rewards and enforcement of violations (Meme), which seeks to prevent public employees and their relatives from issuing, supporting, or benefiting from encrypted currencies.
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