Even when the president starts his encryption
Like a simple notification, Meme Coins is a type of encryption asset that started with jokes or interesting ideas, often inspired by Internet memes, interesting trends or popular online characters. They do not actually have a lot of use or purpose for entertainment, community participation or guess. The most famous meme coin is equipmentAlong with SHIBA INU DOG, I started joking based on “Doge” memes, but it was widely traded and received a lot of attention thanks to ELON Musk, which publicly supported Dogecoin over time.
Especially interesting is that the majority of people Meme coin MEME COINS completely knows that it is not worth it, and basically invests almost money in accordance with the “bigger fool theory,” which says that people are investing in something they know, but I hope to pay more than they paid.
So we can say that it is okay for people to gamble with difficult money, but what happens if the US president, the most powerful person on Earth, publishes its own meme coins?! In this case, is the rules of the game different? What is the impact of the behavior on the general public?
3 days before inauguration Donald TrumpKnown as a bold movement in the politics and business world, he went to the encryption world by starting Trump coins, his memes coin that successfully raised 6 billion won on the first day. After the temporary overlooked advertisements disappeared, the market cap of Trump coins fell to 2 billion market cap and most investors went bankrupt. This launch has caused a lot of debate, and how Meme Coins you.S. Securities and Exchange Commission (SEC), considering their unusual nature and because of their reasoning character.
SEC location of memes coins
The SEC has made a statement that provides opinions on this issue to determine the legal status of encryption assets, including Meme Coins. According to the view of the SEC, the meme coin Encryption asset It is intended to generate profits from internet memes, trends or cultural trends. This coin is generally designed to attract an online population that constantly buys and trades them. But even if all memes coins are unique, they have all common features.
The SEC reminds me that Meme Coin was purchased for entertainment, social participation or cultural reasons rather than practical usefulness. Their value is mainly led by market demand and speculation, not inherent technical or functional advantages. In this sense, they are similar to collectors. Moreover, meme coins often experience speculative characteristics by often experiencing significant price volatility.
According to the SEC, it is not security.
The most important aspect of the SEC statement is the meme coin. Federal Securities Act. The SEC explained that MEME Coins is not securities in accordance with US law based on the “economic reality” of the coin. In other words, memes coin transactions are exempt from the registration requirements of the 1933 Securities Act.
In order to be a security qualification, the Securities Law and the Securities and Trade Act must be implemented in 1934. Specifically, these laws classify securities as financial devices consisting of stocks, bonds, or notes. In the evaluation of the SEC, Meme Coin is not this definition because it does not earn profits. The holder cannot grant the right to import or profit of the corporate venture. In short, memes coins are not securities.
The SEC is also a groundbreaking case v. This test examines whether there is a reasonable expectation of profit depending on the work of others. In the case of memes coins secretary Coin emphasized that it was not sold in anticipation of the profits of a third party or the enemy’s labor. MEME Coin is more than speculative transactions and investors’ sentiments than when people buy and trade collectors that do not have legal status as securities.
Fraud and legal enforcement potential
However, it is important to keep in mind that the statement of the SEC does not provide Carte Blanche approval for all memes coins. MEME Coins may not belong to the Federal Securities Law, but the SEC also warned that promotion or sales of fraud will cause legal results. This activity can be implemented by federal and state regulators, in accordance with other laws, including fraudulent activities and consumer protection.
more Meme coin It is a definition. If the coin is sold or organized in a manner that does not coincide with these characteristics, it can still be an investment contract if it is designed to bypass the securities law by disguising it by non -security.
Donald Trump may have moved the security guards who entered the meme coin space several times, but also reminds them of wider people. Regulatory environment Encryption assets. Mim coins are not considered to be securities by SEC in a typical form, but buyers and promoters are still recognized for the potential of legal results. As the MEME coin increases, the direction of regulators such as SECs is necessary to determine the role in the future of the financial market.
But more important than the legal status of the meme coin is that people should understand that memes coins are not worth it and should be treated as more gambling and entertainment. Encryption project There are actual use cases. I personally hope that the damage caused by Meme Coins Mania will not cause unnecessary damage to legitimate cryptographic companies.