SEC says memecoins aren't securities but fraud still a risk
The U.S. SEC's Division of Corporation Finance stated memecoins do not qualify as securities under federal law, as they lack profit promises or ties to business ventures, exempting them from registration. However, the SEC warned that projects falsely labeling tokens as memecoins to evade regulations could face legal action, emphasizing fraud risks under other laws. This stance aligns with a more crypto-friendly SEC approach under new leadership, including Chair Paul Atkins and Commissioner Hester Peirce's task force, following recent case withdrawals against major platforms like Coinbase.