MEME currencies are not qualified as securities confirm: SEC

The Foundation’s Funds Department of the American Securities and Stock Exchange Committee (SEC) issued a statement clarifying its views on the implementation of federal securities laws to the Meme currencies.

In a statement this week, the department stated that Mimi currencies are not seen as securities but like holdings.

Mimi currencies are not securities

According to the latest SEC guidanceThe transactions that involve Meme currencies are not formed the MEME currency display and sale of securities under the Securities Law of 1933. As a result, those who submit or sell Meme currencies are not required to register their transactions with SEC or request exemptions from registration. This means that protecting the federal securities law does not apply to a Mimi buyer or holder.

The department’s position depends on the definition of securities under federal law, which includes financial tools such as stocks, bonds and investment contracts. He said that the meme currencies are not commensurate with these groups, because they do not result in profits, transfer income rights, or involve “assembled investments” managed by third parties.

The statement also highlighted that the purchase of Meme is speculative, with the value of the market demand rather than administrative efforts by promoters. However, SEC explained that the fraudulent activities related to coins are still facing enforcement procedures under other federal or governmental laws.

However, this guidance does not apply to the products that are distorted as a metal coin MIM to circumvent the stock regulations. Each case will be evaluated based on the specific economic facts of the treatment, according to the division.

SEC revised approach

SEC’s updated guidelines about Meme currencies come about a month from President Donald Trump’s second mandate. Before his inauguration, Trump presented the Mimi coin called the official Trump (Trump) to his supporters, while his wife, Melania Trump, launched a separate code called the official Melania (Melania).

The head of the new SEC Council, Mark Uyeda, who was appointed by Trump in January, had previously made clear plans to clarify the cryptocurrency regulations. On his first day in his post, Oida announced the establishment of an encrypted currency business group.

SEC now states that Meme coins do not qualify as securities in a noticeable shift from the agency’s approach during the era of former President Gary Ginsner, which prompted the classification of coded codes as securities and urged encryption service providers to register.

Earlier this month, SEC Hester People Commissioner said that many Meme currencies in the market are not subject to the organizational agency’s regulatory scope, while emphasizing that “facts and circumstances are important.”