Hester Peirce, a commissioner at the U.S. Securities and Exchange Commission (SEC), recently made it clear that memecoins—those quirky, often joke-inspired cryptocurrencies—aren’t really under the SEC’s radar. This statement comes as the TRUMP memecoin, inspired by former U.S. President Donald Trump, has seen losses pile up to a staggering $2 billion.
Peirce, who’s often called “Crypto Mom” for her supportive stance on digital assets, pointed out that the SEC’s main focus is on securities. Memecoins, she suggested, don’t necessarily fit into that category. “Not every cryptocurrency is a security,” she said, adding that the SEC’s role isn’t to regulate every single digital asset out there.
The TRUMP memecoin, which gained popularity due to its connection to the polarizing political figure, has been on a wild ride lately. After hitting some pretty high peaks earlier this year, the token has taken a nosedive, leaving investors with massive losses. Some folks are blaming the downturn on market volatility, while others think it’s just the nature of memecoins—fun one day, a disaster the next.
Peirce’s comments have sparked a bit of debate in the crypto community. On one hand, some people are relieved that the SEC isn’t stepping in to clamp down on memecoins. On the other hand, critics argue that the lack of oversight could lead to more scams and pump-and-dump schemes, especially in a space as unpredictable as memecoins.
Despite the losses, the TRUMP token still has its die-hard supporters. Some believe it’ll bounce back, while others are just in it for the meme culture. Either way, Peirce’s remarks highlight the ongoing struggle regulators face when trying to figure out how to handle the fast-evolving world of cryptocurrencies.
In the meantime, investors are being reminded—yet again—that memecoins are a risky bet. While they can bring huge gains, they can also lead to massive losses, as the TRUMP token’s $2 billion drop clearly shows. So, if you’re thinking about diving into the memecoin craze, maybe think twice—or at least don’t invest more than you can afford to lose.