- Hester Peirce suggests many memecoins don’t fit the current regulatory framework.
- The SEC is easing its crypto crackdown as Peirce pushes for clearer rules.
SEC Commissioner Hester Peirce claims most meme coins may not fall under the SEC jurisdiction. In an exclusive interview with Bloomberg, Hester stated “Many of the meme coins that are out there probably do not have a home in the SEC under our current set of regulations.”
She further reinforced the previous administration’s roles in the crypto industry and its stance towards major cryptocurrencies and memecoins.
Hester believes the SEC has discouraged some crypto projects by hardening its regulations, especially under its former chairman Gary Gensler, although memecoin lacks real-life use cases and only thrives on trends and hype.
“We’ve just put roadblock after roadblock up against people who are trying to come in and talk to us,” she said.
As the new head of the SEC’s crypto task force, Peirce wants clearer rules on which tokens count as securities. Her approach signals a shift from aggressive enforcement.
The SEC has also scaled back its crypto enforcement team. Reports suggest lawyers from the division are being reassigned, indicating an internal policy shift.
Still, concerns remain: Meme coins often face fraud allegations, pump-and-dump schemes, and extreme volatility. The recent lawsuit against the Solana-based platform pump.fun, accused of running a Ponzi scheme, highlights these risks.
Peirce’s comments come as Donald Trump and Melania Trump launch their own meme coins on Solana. Trump’s $TRUMP token soared to $73 just after launch and before crashing to its current $16, showing the wild swings in this market. Also, the MELANIA meme coin faced the same destiny dropping over 85% from its ATH to to the current trading level of $1.43.
The political landscape is shifting. Trump supports a pro-crypto stance, while the SEC’s leadership is changing. This raises speculation about a more lenient approach to digital assets.
“Facts and circumstances matter. We always have to look at the facts and circumstances,” said Peirce, in a thoughtful response when asked if the President and First Lady launching their own memecoin is a challenge.
Peirce has long pushed for clearer rules instead of aggressive crackdowns. “Regulation should set basic parameters and then let people innovate,” she said.
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