Meme Coins Are Not Securities, SEC Says In Major Development For Scam-Ridden Segment

Under the SEC's new designation, meme coins are not securities, including top meme token $DOGE and U.S. President Donald Trump's $TRUMP token. (Credit: AFP)

KEY POINTS

• The SEC said meme tokens do not constitute the financial instruments enumerated in securities laws
• The SEC also warned against actors who abuse the system and engage in "fraudulent conduct"
• The new designation came following the rise and fall of the $LIBRA token initially promoted by Argentina's president

The U.S. Securities and Exchange Commission (SEC) officially ruled Thursday that meme coins were not securities, instead likening them to collectibles.