The U.S. Securities and Exchange Commission indicated that transactions involving a meme coin—a type of crypto asset inspired by internet memes, characters, current events or trends for which the promoter seeks to attract an enthusiastic online community to purchase the token and engage in trading—does not involve the offer and sale of securities under applicable law.
The SEC noted in the releases Thursday that meme coins tend to experience significant market price volatility and often are accompanied by statements regarding their risks and lack of utility other than for entertainment or other nonfunctional purposes. However, meme coins are not “investment contracts.”