SEC’s Division of Corporation Finance says memecoins are not securities

Samecoins may not be subject to American securities laws, according to a recent Declaration of Securities and Exchange Commission.

On February 27, the financing division of committee companies tackled A long -standing debate on the question of whether cryptocurrencies – in particular same – behave under federal laws on securities. The current dry considers the same as collectibles as the investments and complaints that they do not respond to the definition of security under the Howey test.

“The same is generally purchased for entertainment, social interaction and cultural ends, and their value is mainly motivated by market demand and speculation. In this regard, same is akin to collectibles, “said SEC officials in a recent staff press release.

According to the Commission, the documents even are not part of a larger company. There is no central team pool funds to develop a business, and buyers do not invest in a structured project expecting long -term growth.

He added that the same draws their price movements from “demand and speculation of the market” rather than “entrepreneurial or managerial efforts of others”.

Since their value is linked to media and collective feeling – a bit like collectibles – the agency said that it did not meet the tests of the Howy test for an investment contract.

“People who participate in the offer and sale of documents even do not need to register their transactions with the Commission,” said the dry, but added that fraudulent activity would not go unnoticed.

The agency warned that scams involving the same could still face the application of other federal or state regulators. Although the tokens themselves are not titles, deceived investors or engaging in misleading practices could still address projects in legal difficulty.

He also pointed out that the declaration only applies to parts even which corresponds to its description, and the tokens disguised as the same way to bypass the laws on securities could also be subject to regulations, according to their structure and their objective.

However, the agency noted that its opinions are not a “rule, regulation, orientation or declaration” of the SEC itself. Instead, he described the declaration as an interpretation of the personnel without “no force or legal effect”.

The Commission aims to provide “greatest clarity on the application of federal laws on securities to cryptographic assets” with its declaration, but clearly indicated that the classification of documents even could always depend on the “economic realities of the particular transaction”.

Currently led by a Pro-Crypto leadershipThe declaration of the SEC marks a significant change compared to the previous position of the regulator under former president Gary Gensler, who mainly saw all the cryptocurrencies, Except Bitcoinas titles.

During the mandate of peopleler, the SEC continued legal actions against the main cryptographic entities, including Coinbase and Ripple Labs. In particular, the trial against Ripple Labs, initiated in 2020, has become a reference case in this regard.

A decision in 2023 revealed that XRP programmatic sales has not violated laws on securitiesBut the dry appealed the decision.