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 The SEC also repealed its Staff Accounting Bulletin 121, which had previously prevented banks from offering crypto custody services.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.

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The creator of the HAWK token previously stated the SEC was done with its investigation, and federal authorities cleared her of responsibility for the HAWK token crash. Welch stated she lacked the knowledge of crypto and regretted misleading her fans with a token that she did not fully understand. She explained her engagement with authorities in a recent Talk Tuah podcast.

When the crash happened, up to 97% of the token supply was held by snipers, and a group of insider wallets ended up crashing the price with rapid selling. HAWK was sniped early before it was available to the public, and sold to unaware retail investors. After that, the token did not have liquidity providers or market makers, and simply extracted SOL, leaving buyers to absorb the losses.

The lawsuit against Welch started in December 2024, and crypto-investigating lawyer office Burwick Law is still seeking out all related parties. There is no official document proving that Welch is innocent. However, authorities did not continue the investigation beyond verifying the rug pull. Despite the losses, Welch reportedly received only $125K in advanced payment, with up to 50% of the token’s proceeds. At one point, Welch held over 50% of the token supply in a single wallet.

HAWK loses its meme coin momentum

Within minutes, HAWK was sold off, resulting in losses of more than 95%. She went silent and stopped using social media after the sale, which took place during a livestream with Welch. The most recent podcast restated earlier indications that Welch would not be subject to fines or penalties.

After the crash, HAWK traded in a single trading pair, with only $95K in liquidity. Previously, HAWK managed to reach $500M in market capitalization within minutes, rivaling older and more established memes. HAWK launched during peak season for celebrity tokens.

The token did not revive after the news, still trading at $0.00015. Despite the low price, whales still realized gains, with one whale extracting 11.5 SOL. HAWK can still manage a small rally from its lows, but quickly falls on renewed selling from remaining holders.

According to Solscan, the token still has 7,609 holders and continues to see small-scale trading through Jupiter or directly on Raydium. The volumes are extremely low, with trades in the hundreds of dollars.

The post Hailey Welch cleared in HAWK token rug pull first appeared on Coinfea.

The event, which features incumbent President Joe Biden and former President Donald Trump, is anticipated to influence these speculative assets’ value significantly.

Political events stir market movements

The crypto market has recently witnessed the emergence of meme coins such as Super Trump (STRUMP) and Maga (TRUMP) on the Ethereum network, alongside Maga Hat (MAGA) on the BNB Smart Chain, and Jeo Boden (BODEN) and Doland Tremp (TREMP) on the Solana network. 

These tokens have quickly captivated the crypto community, amassing a market capitalization exceeding $1 billion and a 24-hour trading volume of over $260 million, per Coingecko’s PolitiFi token category. Despite a declining crypto market where significant assets like Bitcoin (BTC) and Ether (ETH) are experiencing significant losses, these meme coins have not been spared.

The Trump-related tokens have plummeted further amid rumors of an official DJT token set to launch on the Solana network. Analysts from Bitfinex highlight that the upcoming presidential debate could trigger even more pronounced fluctuations for these tokens, as they are closely tied to the political climate and election outcomes.

Presidential candidates to address Crypto policies

The debate is a platform for political confrontation and a significant event for the crypto industry. Both presidential candidates are expected to outline their views on crypto regulations. Key topics likely to be addressed include capital gains taxes and specific crypto taxation policies. These discussions are crucial as they could lead to legislative changes directly affecting the crypto market.

The crypto community keenly watches the candidates’ stances, especially following endorsements by notable figures such as the Winklevoss twins. The Gemini co-founders recently made headlines with their $1 million BTC donation to Trump’s campaign, although they faced issues with exceeding the legal donation limits, leading to a partial refund.

Record highs in Meme coin liquidity

Despite the volatility, meme coins’ liquidity has hit unprecedented levels. Data from Paris-based Kaiko shows that liquidity, measured by 1% market depth, has reached a record $128 million. This surge facilitates the more straightforward execution of large transactions at stable prices, optimizing the bid-ask spread and reducing the cost of trade executions.

However, while market makers increase their presence, the inherent risk associated with these highly volatile tokens remains a concern. According to Kaiko, the bid-ask spreads are still above 2 basis points on most centralized exchanges, indicating that while liquidity has improved, meme coins are still considered precarious investments by the broader market.

The coming week is crucial for investors and observers alike, as the political developments could dictate market dynamics extensively. The anticipated volatility presents both opportunities and risks, underscoring the speculative nature of these politically influenced meme coins.

The post Meme Coins Volatility Expected to Spike as US Presidential Debate Approaches first appeared on Coinfea.