Meme Coins, or crypto assets with no apparent value beyond the fact they exist, have been deemed not to be securities by the Securities and Exchange Commission (SEC).
According to a Staff statement, the Division of Corporation Finance (CorpFin): “transactions in the types of meme coins described in this statement, do not involve the offer and sale of securities under the federal securities laws.[4] As such, persons who participate in the offer and sale of meme coins do not need to register their transactions with the Commission.”
A recent example of a Meme Coin may be the Trump Coin on the Solana blockchain, initially launched on Coinbase. $Trump has gyrated in value, at one point worth more than $74, and today, it is being traded at around $12.
There are others…
In contrast to the Biden Administration, where all digital assets except Bitcoin (and maybe Ethereum) were deemed to be securities, the Trump Administration has taken a different approach to digital assets. The rapid clarity by the Commission clears the way for novelty crypto to be traded online—more akin to collectibles. Of course, a question remains about any taxes on gains or losses.
CorpFin adds:
“Meme coins typically are purchased for entertainment, social interaction, and cultural purposes, and their value is driven primarily by market demand and speculation. In this regard, meme coins are akin to collectibles. Meme coins also typically have limited or no use or functionality.”
