SEC Commissioner Caroline Crenshaw has voiced opposition to the company’s latest steerage that classifies meme cash as non-securities.
In an announcement on Feb. 27, Crenshaw argued that meme cash might meet the Howey check’s standards, notably in how traders depend on the managerial efforts of builders and promoters for potential income.
Her dissent is available in response to the SEC’s newly launched steerage, which describes meme cash as speculative property tied to on-line tendencies relatively than funding contracts.
New SEC Stance Suggests Meme Cash Exist For Leisure
The SEC’s new stance means that meme cash exist primarily for leisure and social engagement, a perspective Crenshaw firmly disputes.
“As we speak’s assertion paints meme cash as cultural initiatives whose objective is leisure and social engagement. The fact is that meme cash, like every monetary product, are issued to earn cash,” she mentioned.
The controversy round meme cash has intensified following a number of high-profile scams and a controversial presidential memecoin launch.
The problem has drawn the eye of lawmakers, notably after former U.S. President Donald Trump’s involvement in a memecoin undertaking.
In response, Democratic Senator Elizabeth Warren and others have referred to as for an investigation into potential ethics violations associated to political token choices.
On Feb. 27, Consultant Sam Liccardo of California introduced that Home Democrats are getting ready laws to ban presidential meme cash.
The proposed Trendy Emoluments and Malfeasance Enforcement (MEME) Act goals to ban U.S. lawmakers, in addition to their spouses and dependents, from issuing, endorsing, or benefiting from digital property.
#SEC 2.0: Commissioner #Crenshaw points Crypto 2.0 Statementhttps://t.co/nElWf4yfjp pic.twitter.com/zAUTJt9HIN
— MartyParty (@martypartymusic) February 28, 2025
In the meantime, authorized consultants are weighing in on how meme cash needs to be regulated.
Former Commodity Futures Buying and selling Fee (CFTC) lawyer Elizabeth Davis prompt that if the CFTC is granted higher oversight of cryptocurrencies, meme cash might fall below its regulatory jurisdiction.
Davis additionally predicted that clearer laws on meme cash would emerge inside the subsequent yr, bringing extra readability to the trade.
Trump Elects Professional-Crypto Paul Atkins as SEC Chair
As Cryptonews reported earlier, President-elect Donald Trump has chosen Paul Atkins as SEC Chair.
Atkins, who beforehand served below SEC chairs Richard Breeden and Arthur Levitt, is “crypto savvy” and has a “deep understanding of the internal workings of the company.”
Trump, who most not too long ago launched his household’s crypto platform, World Liberty Monetary, has recurrently vowed to enact a crypto-friendly regulatory framework upon returning to the Oval Workplace.
The shift comes because the SEC has been going through rising criticism resulting from its “regulation-by-enforcement” strategy to the crypto trade.
Critics argue that the SEC has failed to determine a transparent regulatory framework for cryptocurrencies, opting as an alternative to pursue authorized motion towards key trade gamers.
A coalition of seven U.S. states has come collectively to problem the Securities and Alternate Fee’s (SEC) regulation of cryptocurrency.
The states have filed an amicus transient, led by Iowa Legal professional Normal Brenna Chicken, arguing that the SEC’s try to manage cryptocurrencies constitutes a “energy seize” that might stifle innovation, hurt the crypto trade, and exceed the company’s authority.
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