SEC Commissioner Caroline Crenshaw has voiced opposition to the company’s latest steering that classifies meme cash as non-securities.
In a press release on Feb. 27, Crenshaw argued that meme cash may meet the Howey check’s standards, significantly in how buyers depend on the managerial efforts of builders and promoters for potential income.
Her dissent is available in response to the SEC’s newly launched steering, which describes meme cash as speculative belongings tied to on-line developments somewhat 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.
“At this time’s assertion paints meme cash as cultural tasks whose goal is leisure and social engagement. The truth is that meme cash, like all monetary product, are issued to earn a living,” she stated.
The talk 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, significantly after former U.S. President Donald Trump’s involvement in a memecoin mission.
In response, Democratic Senator Elizabeth Warren and others have known 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 taking advantage of digital belongings.
#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 must be regulated.
Former Commodity Futures Buying and selling Fee (CFTC) legal professional Elizabeth Davis recommended that if the CFTC is granted larger oversight of cryptocurrencies, meme cash may fall beneath its regulatory jurisdiction.
Davis additionally predicted that clearer laws on meme cash would emerge inside the subsequent 12 months, bringing extra readability to the business.
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 beneath SEC chairs Richard Breeden and Arthur Levitt, is “crypto savvy” and has a “deep understanding of the interior workings of the company.”
Trump, who most just lately launched his household’s crypto platform, World Liberty Monetary, has repeatedly 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” method to the crypto business.
Critics argue that the SEC has failed to ascertain a transparent regulatory framework for cryptocurrencies, opting as an alternative to pursue authorized motion in opposition to key business 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 Lawyer Normal Brenna Hen, arguing that the SEC’s try to control cryptocurrencies constitutes a “energy seize” that may stifle innovation, hurt the crypto business, and exceed the company’s authority.
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