White House Memecoins: SEC Steps Back as Trump-Linked $TRUMP Dominates Market

SEC Backs Off Memecoin Regulation The United States Securities and Exchange Commission (SEC) has officially backed off from memecoin regulation — largely internet culture- and speculation-influenced digital tokens. The most widely known of them is $TRUMP, a token associated with the political and financial community of President Donald Trump. SEC Commissioner Hester Peirce had this week assured that memecoins would not be considered securities, a pointer to a hands-off approach. “People, if you’re waiting for the hope that there’s SEC protection around these, you should not have that hope,” Peirce said in an interview with CNBC . The remark amounts to leaving investors to their own devices in one of the crypto world’s most speculative corners. $TRUMP: Billion-Dollar Token, Zero Regulation Previously valued at $15 billion, the $TRUMP memecoin dropped dramatically after hitting its apex — the usual fate of meme tokens. But 80% of the supply of the token, as reported, is controlled by Trump-affiliated groups, which raised eyebrows about its purpose and ownership. Critics argue this structure causes a conflict of interest at the highest point in the government. Democratic legislators like Senator Richard Blumenthal have demanded oversight, threatening potential abuse of political power for personal gain. SEC’s Peirce: Investors Are on Their Own Commissioner Peirce equated it to the 2021 NFT mania, when the SEC also refrained from issuing concrete guidelines. She acknowledged the missed opportunity but said that memecoins fall outside the agency’s authority — unless purposefully created as security transactions. While sounding a word of caution, Peirce made no secret of it: the market is on its own, and the SEC won’t intervene. Washington’s Crypto Shift Under Trump Since the return to office of Donald Trump, the White House has become more sympathetic towards crypto. The SEC’s withdrawal from strong-arm enforcement is reflective of this shift, which is in stark contrast to previous Democratic administrations . Peirce went on to defend the shift, with the argument that past enforcement was lacking in a strong legal foundation. “We didn’t have a clear set of rules,” she said. Now that the president’s family directly benefits from a memecoin now outside regulation, the future of crypto policy under Trump is increasingly self-serving — and detached from traditional regulation.

Source: BTC Pulse