LAS VEGAS — According to SEC Commissioner Hester Peirce, meme coins such as $TRUMP won’t be regulated by the Securities and Exchange Commission. This means investors shouldn’t expect any legal protection if these tokens lose value.
Earlier this year, the SEC clarified that it doesn’t consider most meme coins to be securities under U.S. law. This change happened shortly after Donald Trump released his own meme coin, which quickly gained value and boosted his estimated net worth—only to crash shortly after.
Peirce explained to CNBC that this situation is like the NFT boom in 2021. NFTs weren’t treated as securities, and their prices moved based on hype. The SEC chose not to step in, and Peirce believes the agency should have clearly told the public it wouldn’t be involved.
She emphasized that although some transactions can technically fall under securities law, investors should not rely on the SEC for protection when it comes to meme coins. In short: invest at your own risk.
Since Trump returned to the White House in January, the SEC has been rolling back its crypto enforcement, taking a more hands-off approach. This move is causing controversy—especially as Trump and his family are heavily involved in crypto.
The $TRUMP token is largely controlled by Trump-affiliated organizations (around 80%) and was part of Trump’s larger crypto push. It quickly reached a $15 billion market cap after launch, thanks to Trump’s online promotion. But within days, the value collapsed. Even so, the coin’s creators still earn fees from every trade.
The White House insists there are no conflicts of interest, claiming Trump’s assets are managed by a family trust. But some lawmakers disagree. Senator Richard Blumenthal and others are worried that Trump’s crypto ties could let foreign or corporate interests influence the presidency.
Meanwhile, the SEC recently dropped its lawsuit against Binance and its founder Changpeng Zhao. This case was one of the biggest crypto crackdowns under former SEC Chair Gary Gensler. Although Zhao had pleaded guilty to money laundering in 2023 and served four months in prison, he still kept most of his wealth. His net worth is now estimated at $67 billion.
Before the case was dropped, Zhao had been strengthening ties with Trump supporters. His exchange even listed a stablecoin that helps fund Trump-aligned groups. He also applied for a presidential pardon and secured $2 billion in investment from a UAE state fund.
When asked about the SEC’s decisions, Peirce denied any political influence. She said the agency didn’t have clear rules before and is now focused on setting proper regulations before enforcing them.
This approach also led the SEC to cancel Staff Accounting Bulletin 121 in January. That bulletin had blocked banks and other institutions from holding crypto assets. Peirce said it was never officially made into a rule and unfairly kept experienced custodians out of the crypto space.