Caroline Crenshaw, chairman of the U.S. Securities and Exchange Commission, has released a dissent over the SEC’s recent stance that Memecoins is not a securities.
According to a February 27 statement from the Commissioner, MemeCoins were able to meet the requirements of Howey Test, which is to coordinate the developer team and promoter, to benefit from the management efforts of others.
The Commissioner added that most, if not all, cryptocurrencies can be defined as memokine under the recent guidance of the SEC, released on the same day. In the guidance, the agency said Memecoin represents an online social trend with speculative value and high volatility and is not a securities. But Commissioner Crenshaw has a different perspective.
“Today’s statement portrays memecoin as a cultural project aimed at entertainment and social engagement. In reality, memecoin, like any financial product, is issued to make money.”
Memocoin is a more keen focus following several well-known scams, hacking, and even the launch of the President’s Memocoin, threatening the long-term viability of the sector and inviting scrutiny from state authorities.
The official Trump Token Price Action fell dramatically shortly after its release. sauce: TradingView
Related: Solana’s Token Mint Frenzy loses steam when Memokine becomes a torch
US regulators and lawmakers try to govern with memokine
Following the launch of President Donald Trump’s memocoin, several Democrats, including Elizabeth Warren, have called for an investigation into potential ethical violations of the presidential token.
On February 27, members of California State Assembly Sam Ricardo announced that House Democrats were preparing a bill to ban President Meecoin.
The proposed bill, entitled “Modern Emoliment and Malfiesance Enforcement (MEME) Act,” would prohibit U.S. Congressional laws from sponsoring, issuing, or approving digital assets.
Additionally, spouses and dependents of US representatives, presidents, vice presidents and senior executive officers are also prohibited from issuing or sponsoring Memecoin under the bill.
Attorney Elizabeth Davis, former chief attorney for the Commodity Futures Trading Commission (CFTC), recently argued that Memocoin should be regulated by the CFTC.
Davis told the Cointelegraph that if merchandise regulators are allowed to surveillance over the code, there is a strong possibility that Mimecoin will be in the scope.
The lawyer also expressed confidence that comprehensive memocoin regulations will be established in the United States over the next year.
magazine: Memecoins: Crypto’s ideal betrayal…or its true purpose?
