US SEC Commissioner Hester Peirce Signals No TRUMP Meme Coin Oversight

The TRUMP meme coin will not be monitored by the United States Securities and Exchange Commission (SEC). At a recent industry event in Las Vegas, US SEC Commissioner Hester Peirce discussed this.

Earlier this year, the $TRUMP token suddenly rose and then fell in value. It is very closely linked to President Donald Trump.

The US SEC Commissioner’s remarks were made as lawmakers were paying closer attention to politicians’ involvement in cryptocurrency ventures.

Though the US SEC had claimed that most meme coins are not considered securities, Peirce stated that this did not mean investors may rely on regulations when handling them.

The commissioner emphasized that the agency’s current stance excludes meme coins like $TRUMP from formal enforcement.

US SEC Commissioner Hester Peirce Comments on $TRUMP Meme Coin

In a recent interview with CNBC at the Bitcoin 2025 conference, Commissioner Hester Peirce stated that the $TRUMP meme coin is not under the US SEC’s jurisdiction. She explained that the token does not meet the criteria for a security under U.S. federal law.

According to Peirce, though tokens like $TRUMP may fluctuate based on market activity, that didn’t automatically subject them to SEC regulation.

Peirce drew comparisons to the 2021 rise of non-fungible tokens (NFTs). It had attracted wide public interest but did not qualify as securities.

She noted that while the SEC can regulate transactions that involve securities, meme coins in general do not fall into that category.

Peirce stressed that investors should not rely on the SEC for protection in the meme coin space, indicating that these assets operate largely outside traditional regulatory frameworks.

The US SEC Commissioner stated,

“Here was something where I saw a lot of interest in this out in the world — in meme coins — and it made sense for us to say, People, if you are expecting that there’s SEC protection around these, you should not expect that.”

At press time, TRUMP meme coin was trading at $10, reflecting a 6% decline over the past 24 hours.

The controversial meme coin’s market cap stood at approximately $2.15 billion, with a 24-hour trading volume of $680 million.

Democratic Lawmakers Call for Increased Scrutiny

As federal regulators adopt a more hands-off approach toward crypto, Democratic lawmakers have voiced concerns about political figures profiting from digital assets.

Senator Richard Blumenthal is among those who have expressed concern over potential foreign and corporate impact through the Trump family’s crypto holdings.

The $TRUMP token, reportedly controlled by the Trump Organization and related entities, has become a focal point of these concerns.

Blumenthal and Democrats say that officials in public office should not engage with digital assets that could create financial conflicts of interest. Their concerns include the unpredictable changes in the meme coin price.

Some members of Congress have expressed unease over the fact that token creators collect fees from transactions, even when retail investors incur losses.

In a recent report, Ripple’s Chief Legal Officer urged the US SEC to clarify when digital assets cease to be classified as securities. The letter emphasized the need for Congress to establish clear crypto regulations and proposed a safe harbor framework to guide compliant token issuers.

Maxine Waters Proposes ‘Stop TRUMP in Crypto Act’

Additionally, Representative Maxine Waters introduced a bill titled the “Stop TRUMP in Crypto Act” shortly before a Trump-hosted crypto event.

The proposed law wants to stop federal officials, such as the president and their families, from owning, promoting, or trading digital assets for the duration of their time in office.

New rules in the bill would forbid elected officials from being rewarded for crypto marketing, mining, or trading.

It also tries to stop government officials from owning digital assets when having access to undisclosed information. Waters points out that these rules assist in keeping the crypto sector safe from misuse of power.

The legislation also looks at broader issues related to Trump’s involvement in crypto projects. This involved plans for a USD stablecoin. It moves to set up a Bitcoin reserve run by the government.

Waters stated that these moves point to a rise in political involvement with crypto. She thinks it calls for creating new laws.

US SEC Enforcement Strategy Under New Administration

The US SEC approach to crypto regulation has shifted under the current administration. Since January, the agency has moved away from aggressive enforcement and instead focused on developing clear regulatory guidelines.

Commissioner Peirce stated that the previous lack of formal rules created confusion in the market. More so, US SEC Commissioner Peirce also discussed the agency’s decision to withdraw Staff

Accounting Bulletin 121. This directive restricted financial institutions from offering crypto custody services.

She noted that the bulletin had not gone through the standard rulemaking process. Its removal was necessary to open up participation from traditional custodians.

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