SEC’s Hester Peirce Says Memecoins Like $TRUMP Are Unregulated

• SEC Commissioner Hester Pierce mentioned that memecoins such as $TRUMP fall outside the SEC’s regulatory scope. 
• After President Trump came into power in January, the SEC is taking back its enforcement from the industry. 

Hester Peirce, the Republican SEC Commissioner, states that the Securities and Exchange Commission is out of the business of regulating memecoins, and investors should not anticipate any guidance on $TRUMP. 

In February, the SEC said that it does not consider memecoins securities under U.S. federal law. This event was followed by the launch of the $TRUMP coin by President Donald Trump. Peirce mentioned that it is the same situation when non-fungible tokens gained popularity in 2021. 

They were not securities, but they didn’t surge and slump in value based on investor activity in the market. Peirce also mentioned that the SEC missed the opportunity to publicize that it was not getting involved. 

The Commissioner attended the Bitcoin 2025 conference in Las Vegas and gave an interview that “Here was something where I witnessed immense interest in this out in the world in memecoins, and it made sense for us to say People, if you aren’t anticipating that there is SEC protection around these, you shouldn’t anticipate that.

Also, you can bundle almost anything into a securities transaction. However, normally, it is good for people to know, I should not be seeking the SEC for protection in this area.” And she also advised to purchase it at your own risk. 

The Accusations 

After President Trump came into power in January, the SEC is taking back its enforcement from the industry, as part of a more crypto-friendly approach to the asset class. The strategy is controversial as the president and his family intensified their involvement in crypto. 

This has also led many Democratic policymakers to declare a clear conflict of interest. Around 80% of the $TRUMP token is controlled by the Trump Organization and associated bodies, and has become the focal point of the expanding crypto empire of Trump. 

Like other memecoins, the token has no fundamental value. But after its introduction in January, just before the inauguration, $TRUMP rose to a $15 billion market cap. But over the past few days, the token lost most of its value. 

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