SEC says memecoins aren’t securities, but fraud will still be policed

The Securities and Exchange Commission has confirmed memecoins don’t fall under securities laws and don’t have to be registered with the regulator.

Update (Feb. 28, 4:20 am UTC): This article has been updated to further clarify that the Division of Corporation Finance’s statement isn’t legally binding.

The US Securities and Exchange Commission says it does not view memecoins as securities but warned any fraudulent tokens could still be subject to enforcement actions by other regulators.

The agency’s Division of Corporation Finance said in a Feb. 27 statement that, in its view, memecoins “do not involve the offer and sale of securities under the federal securities laws” and “are akin to collectibles.”

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