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CFTC not SEC could regulate memecoins in US – Commissioner Hester Peirce says

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US Securities and Exchange Commission (SEC) Commissioner Hester Peirce has acknowledged that the financial regulator may not have the authority to regulate most memecoins.

In a Feb. 11 Bloomberg interview, the financial regulator pointed out that current laws do not classify these tokens as securities, leaving a gap in oversight.

According to her:

“There are lots of people introducing memecoins right now [and] facts and circumstances matter. But many of the memecoins that are out there probably do not have a home in the SEC under our current set of regulations.”

Peirce suggested that Congress may need to introduce legislation to clarify the regulatory landscape. She also noted that the Commodity Futures Trading Commission (CFTC) could oversee these assets.

Collectibles?

White House crypto advisor David Sacks suggested that memecoins should be classified as collectibles rather than financial securities.

According to him, these assets derive their value from market sentiment rather than investment contracts.

He noted:

“[Memecoins are] collectibles. It’s like a baseball card or a stamp. People buy it because they want to commemorate something.”

ETF Store President Nate Geraci echoed this sentiment, arguing that memecoins do not fall under the SEC’s securities definition. He also likened the assets to digital collectibles.

Geraci said:

“Memecoins [are] more akin to collectibles IMO.”

Rising memecoin interest

Over the past year, memecoins have surged in popularity despite their speculative nature. Often inspired by internet culture or public figures, these tokens rarely promise any intrinsic value.

The popularity of these assets is evidenced by the fact that US President Donald Trump and his wife, Melania, have each launched their memecoin. Mor

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Author: Oluwapelumi Adejumo

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