SEC’s Peirce Says ‘Many’ Memecoins Likely Fall Outside Regulator’s Jurisdiction

SEC’s Peirce Says ‘Many’ Memecoins Likely Fall Outside Regulator’s Jurisdiction

SEC Likely Lacks Jurisdiction Over Memecoins, Says Commissioner Hester Peirce

The U.S. Securities and Exchange Commission (SEC) likely does not have the authority to regulate most memecoins, according to SEC Commissioner Hester Peirce. In a recent interview with Bloomberg, Peirce stated that while each case requires individual assessment, many memecoins do not fall under the SEC’s current regulatory framework.

“We always have to look at the facts and circumstances, but many of the memecoins that are out there probably do not have a home in the SEC under our current set of regulations,” Peirce said. She suggested that oversight of these digital assets might fall under the jurisdiction of another agency, such as the Commodity Futures Trading Commission (CFTC), or require intervention from Congress.

Memecoins, unlike traditional cryptocurrencies such as Bitcoin and Ethereum, are often created as jokes or community-driven projects with little to no intrinsic value. Industry participants have long argued that these tokens should not be classified as securities, comparing them to collectibles like baseball cards or Beanie Babies rather than traditional investments.

Peirce’s comments reflect a shift from the SEC’s previous regulatory approach under former Chairman Gary Gensler, who maintained that nearly all cryptocurrencies—except Bitcoin—were securities and subject to SEC oversight. Following Gensler’s departure, the SEC has taken steps toward a more defined regulatory framework for crypto. Acting Chair Mark Uyeda recently announced the formation of a new Crypto Task Force, led by Peirce, aimed at providing greater regulatory clarity.

Last week, Peirce outlined the task force’s key priorities, including distinguishing between securities and commodities in the crypto space and streamlining the SEC’s registration process for digital assets. She also reaffirmed her stance on memecoins, emphasizing that while people should be free to invest in them, they must also accept the risks.

“In this country, people generally have a right to make decisions for themselves,” Peirce said. “But the counterpart to that liberty is the expectation that they must take responsibility for those decisions and not rely on the government for protection or bailouts.”

Her statements suggest a more hands-off regulatory approach toward memecoins, signaling potential changes in the SEC’s broader stance on cryptocurrency oversight.