SEC Staff Says Memecoins Like Collectibles Not Securities (1)

Speculative cryptocurrency assets known as memecoins are not considered securities, the staff of the US Securities and Exchange Commission said Thursday, even though the assets generate buzz.

This means people who offer and sell these digital assets do not need to register with the SEC, according to the statement. It also means buyers aren’t protected by federal securities laws.

Memecoins are a type of crypto asset that are seeded by an internet meme or a joke. They’re inspired by memes, characters, current events or trends, but carry no fundamental value. Owners buy them for entertainment and speculation.

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