Securities and Exchange Commission (SEC) Commissioner Hester Peirce has recently pointed out that the majority of meme coins in circulation do not easily fit into the SEC's regulatory framework.
Her remarks coincide with a surge in interest surrounding meme coins, partly due to the introduction of former President Donald Trump’s official meme coin, TRUMP.
In a discussion with Bloomberg, Peirce addressed the complexities involved in regulating meme coins. She responded to queries about whether releases of meme coins by public figures, including presidents, complicate the SEC's regulatory role by underscoring the agency's inherent constraints.
Peirce noted that the SEC is analyzing various token categories and acknowledged the swift rise of meme coins.
"Facts and circumstances matter. We always have to look at the facts and circumstances, but many of the meme coins that are out there probably do not have a home in the SEC under our current set of regulations," she explained.
Peirce suggested that other entities, such as Congress or the Commodity Futures Trading Commission (CFTC), might need to engage with this jurisdictional issue.
Nate Geraci, president of the ETF Store, shared Peirce's views. "Meme coins [are] more akin to collectibles, IMO," Geraci communicated on X, previously known as Twitter.
Recently appointed to lead the SEC's new crypto task force, Peirce—despite the moniker "Crypto Mom"—clarified her position regarding the industry.
"I don’t describe myself as an advocate of the industry. I’m a freedom maximalist," Peirce declared.
Peirce expressed dissatisfaction with the SEC's current crypto stance, criticizing its regulatory measures for impeding innovation. While she pointed out the agency's adaptable regulatory system, she acknowledged that it has posed hurdles for those seeking to engage with the SEC.
She advocated for an innovation policy inclusive of experimentation and new ideas, applicable not only to crypto but across other sectors as well. Peirce emphasized the need for governmental support in the people's innovation efforts, rather than suppression.
Concurrently, the meme coin market has experienced a slump. At present, the total market capitalization for meme coins is $75.6 billion, equivalent to a 1% drop over the last 24 hours.
In the list of the top 10 meme coins, all recorded losses, with Pudgy Penguins (PENGU) and Dogwifhat (WIF) leading the decline.
Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial or legal advice. Always conduct your own research or consult a professional when dealing with cryptocurrency assets.