The SEC is scaling back its involvement in the meme coin market, with Commissioner Hester Peirce confirming the agency will not regulate tokens like $TRUMP. The move marks a significant change in the United States’ approach to cryptocurrency oversight amid rising political interest and growing market participation.
Meme coins no longer a priority for the SEC
Commissioner Peirce stated that meme coins do not qualify as securities under existing laws and that investors should not expect regulatory protection. She made clear that unless these tokens break securities rules in other ways, the SEC will not intervene in cases of manipulation, scams, or sharp price swings. This policy shift follows the February 2025 announcement that meme coins would not be treated as securities. That decision came shortly after former President Trump introduced the $TRUMP token before his January inauguration.
The token saw a surge in market activity, reaching a valuation of $15 billion before quickly dropping in value. Reports later revealed that about 80% of the token supply was controlled by the Trump Organization and related entities. Critics argue this creates a risk of market manipulation and raises concerns about political influence. Senator Richard Blumenthal warned that foreign interests or powerful corporations could exploit these tokens for political gain, especially with Trump’s family positioned to benefit financially.
SEC withdraws Binance case and reverses past policies
While meme coins dominate headlines, the SEC is also reshaping its broader approach to cryptocurrency. The agency recently dropped its lawsuit against Binance and founder Changpeng Zhao. The case had accused the firm of misleading investors, mismanaging customer funds, and allowing high-net-worth U.S. clients access to the platform despite restrictions.
He admitted to money laundering in another case and only served four months behind bars. At that time, Binance increased its work with governments and introduced a new stablecoin, USD1, which encouraged an investment of $2 billion from the UAE fund. CNN said Zhao asked the Trump administration for a presidential pardon.
SEC commissioner defends policy changes
Hester Peirce rejected claims that recent SEC decisions were politically motivated. She said the agency’s previous approach lacked clear guidelines and transparency. The SEC also repealed its Staff Accounting Bulletin 121, which had previously prevented banks from offering crypto custody services. Peirce described the bulletin as improper policy, arguing it was never subject to public input or formal approval.