SEC Commissioner Hester Peirce confirms that TRUMP and other memecoins currently escape control from the Securities and Exchange Commission’s authority. The SEC Commissioner Hester Peirce made her statement to the public as market participants lost more than $2 billion when the token plummeted.
During her February 11 interview with Bloomberg Peirce explained that the SEC does not regulate most memecoins such as TRUMP. She recommended placing digital asset rules under federal lawmakers or other organs to properly regulate these instruments.
SEC Authority Over Memecoins Questioned
Peirce properly timed her remarks with *New York Times* information revealing victim damages from TRUMP’s collapse. As reported by Chainalysis blockchain analysis, 813,000 crypto wallets lost money when buying this token. TRUMP recorded its price top of $72.60 on January 19 before hitting an 80% crash through market action that started on January 17.
TRUMP suffered significant market destruction after its initial value of $14.5 billion fell to about $3 billion according to CoinGecko. Following the investment downturn Trump Organization made $100 million together with its partners by receiving trading commissions.
People see these new coins with market-driven value as similar to previous crypto fads like ICOs and NFTs because celebrity backing creates hype without real technology improvements.
People in our field share different opinions about how to control these products. ETF Store President Nate Geraci agreed with Peirce when he compared memecoins to valuable collectibles. Lyn Alden reviewed crypto market patterns and told investors that normal financial experts might underestimate how much memecoins affect the system.
SEC Commissioner Hester Peirce says “many of the memecoins that are out there probably DO NOT have a home in the SEC under our current set of regulations”…
Makes sense to me. Memecoins more akin to collectibles IMO.
via @crypto pic.twitter.com/NoWfjiUGHC
— Nate Geraci (@NateGeraci) February 11, 2025
The SEC Crypto Task Force leader and its head Peirce confirmed memecoin regulation lies outside the SEC’s authority prompting other governmental entities to address this issue.
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