SEC Clarifies Meme Coins Are Not Securities, Warns of Fraud
- The SEC stated meme coins are not securities under the Securities Act of 1933.
- Meme coins do not offer rights to future income or profits, key factors in defining securities.
- The SEC emphasized that meme coin transactions do not require registration with the agency.
- Fraudulent activities involving meme coins could still face legal actions from other authorities.
- House Democrats proposed the MEME Act to prevent political figures from profiting off meme coins.
The SEC clarified that meme coins are not considered securities and are exempt from related regulations. However, fraudulent activities in this market could still lead to enforcement actions by other federal or state agencies.
Source (2.6)https://coingape.com/us-sec-confirms-meme-coins-are-not-securities-but-warns-of-fraud/?rand=24432
