Meme Coins May Be Outside the SEC's Reach

Hester Peirce, a commissioner at the US Securities and Exchange Commission (SEC), indicated that many meme coins may not be subject to the regulations of the agency, which has broad authority over the securities industry.

In an interview with Bloomberg Crypto, she explained that the evaluation of the regulation of these currencies is done on a case-by-case basis, adding that Congress or the Commodity Futures Trading Commission (CFTC) could determine the regulatory landscape for these assets.

Peirce confirmed that the agency previously relied on enforcement actions to formulate its regulatory policies, but it is now seeking to change this approach by setting rules first, and then resorting to enforcement and confrontation processes when necessary.

She described the current regulatory climate as an obstacle to innovation, stressing the need to establish basic standards that allow innovators the freedom to experiment within a clear framework, without restricting development in the cryptocurrency sector.

At the same time, Peirce stressed the importance of protecting investors, noting that regulation is not a freedom for all, but must balance innovation with protecting markets.

She also discussed the Authority’s efforts in processing exemption requests, especially those related to exchange-traded funds (ETFs), and its readiness to cooperate with cryptocurrency platforms seeking registration. She also confirmed the continued joint work between the SEC and the CFTC in developing digital currency derivatives policies and enhancing cooperation in regulating the cryptocurrency sector.