Memes

U.S. SEC Declares Meme Coins Are Not Securities

The U.S. Securities and Exchange Commission (SEC) has declared that meme coins generally do not qualify as securities under federal law. This clarification addresses long-standing uncertainty regarding token classifications.

Haider Jamal
March 1, 2025

Meme Coins Are For Entertainment

The SEC stated that meme coins typically “have limited or no functionality” and are not subject to securities laws. The agency also cautioned that meme coin holders aren’t protected by federal securities laws.

Source: The Kobeissi Letter

The SEC further clarified that meme coins are not considered securities because they don’t generate yields or provide rights to business assets or future profits. Instead, they are bought for entertainment, social interaction, or speculative purposes.

Pump.fun Falters

The guidance arrives amid increased scrutiny of the meme coin market following incidents like the LIBRA scandal and the security breach at Pump.fun, which led to the promotion of several fraudulent tokens.

As a result of the breach, Pump.fun has seen a significant revenue decline, falling from $15.38 million in January to just over $1 million. The platform’s daily token launches have dropped sharply, with only 0.88% of tokens created being successfully launched.

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Haider Jamal

Content Strategist

Haider is a fintech enthusiast and Content Strategist at CryptoWeekly with over four years in the Crypto & Blockchain industry. He began his writing journey with a blog after graduating from Monash University Malaysia. Passionate about storytelling and content creation, he blends creativity with insight. Haider is driven to grow professionally while always seeking the next big idea.