#MemecoinSentiment What the SEC said

Not securities by default: Meme coins—crypto assets tied to internet memes or trends and with little to no utility—typically don’t qualify as “securities” under U.S. federal law .

No need for SEC registration: Transactions in these meme coins generally aren’t subject to Securities Act provisions or SEC oversight .

Risk disclaimers are expected: The staff highlighted that meme coins often include language such as:

1. Don’t expect profits

2. No one’s actively managing the project for profit-forming

3. No meaningful functionality

4. High risk of total loss

5. Intended for entertainment .

Howey test remains relevant: If a coin avoids having a common enterprise or profit expectations tied to others’ efforts, it's likely not a security .

But caveats apply:

This guidance is staff-level, not formal law.

Each coin must be evaluated case-by-case—coins that disguise themselves as meme coins to avoid regulation can still be securities .

Fraud, pump‑and‑dump schemes, and misleading promotions remain subject to SEC or other enforcement .