Saad Ullah
The U.S. SEC has ruled that most memecoins are not securities, providing regulatory clarity for the crypto market. Following the announcement, Dogecoin (DOGE) gained 3%, while Solana (SOL) rose 2%.
SEC Clarifies Memecoin (DOGE) Status Amid Crypto Market Growth
The U.S. Securities and Exchange Commission (SEC) has officially ruled that most memecoins, including Dogecoin (DOGE), do not qualify as securities under federal law. This long-awaited clarification, published by the Department of Corporate Finance, states that memecoins lack essential features of securities, such as revenue generation or ownership rights in a company. The announcement comes at a time when memecoin trading has surged, particularly after the election of President Donald Trump.
"It is the Division’s view that transactions in the types of meme coins described in this statement do not involve the offer and sale of securities under the federal securities laws," the SEC stated. "Persons who participate in the offer and sale of meme coins do not need to register their transactions with the Commission. Accordingly, neither meme coin purchasers nor holders are protected by the federal securities laws."
DOGE and SOL Prices React Positively to SEC’s Decision
Following the SEC’s announcement, Dogecoin (DOGE), the most well-known meme coin and the sixth-largest cryptocurrency by market capitalization, saw a 3% price increase. Solana (SOL), which has become the leading platform for launching meme coins, including Trump's official meme coin, also experienced a 2% gain.
Market analysts believe that this regulatory clarity will encourage further trading activity in the memecoin sector. Given that Solana hosts a large number of meme-based tokens, the platform could see increased adoption in the wake of the SEC’s decision.
Crypto Industry Leaders Welcome SEC’s Memecoin Ruling
The crypto industry responded positively to the SEC’s stance on memecoins. Ishmael Green, a partner at Diaz Reus law firm and an expert in cryptocurrency law, called the ruling a "long-awaited move" that would encourage investment in the U.S. digital asset market.
"The SEC’s recent statement on meme coins is the clarity that the digital asset space has been demanding for years," Green stated. "This will drive continued investment in the U.S. crypto space, as the vast majority of meme coins launched in the last 12 months with multibillion-dollar market caps have been released on Solana, an American blockchain."
SEC’s Ruling Could Drive More Memecoin Listings on Exchanges
The SEC’s decision may encourage major crypto exchanges to list more memecoins without fear of regulatory scrutiny. Earlier this year, at the peak of the Trump-related meme coin surge, Coinbase CEO Brian Armstrong noted that nearly 1 million new tokens were being created weekly, making individual regulatory analysis nearly impossible. This statement aligns with the SEC’s move to provide clearer guidelines for the rapidly growing market segment.
Despite their speculative nature, memecoins continue to be one of the most actively traded crypto assets. Data shows that they are traded 3-4 times more frequently than Bitcoin (BTC) and Ethereum (ETH), making them highly attractive to retail investors seeking high-risk, high-reward opportunities.
As the regulatory landscape for cryptocurrencies evolves, the SEC’s latest ruling marks a significant step toward greater transparency and reduced uncertainty for the memecoin market.
Saad Ullah
