US SEC defines: Memecoins are not securities, investors need to bear their own risks

The Corporate Finance Division of the U.S. Securities and Exchange Commission (SEC) has issued guidance on memecoins, stating that they are not securities but rather similar to collectibles. The division believes that the transactions involving memecoins described in the guidelines do not involve the issuance and sale of securities as defined by federal securities laws. Therefore, individuals involved in issuing and selling memecoins do not need to register their transactions with the commission under the 1933 Securities Act, nor do they need to comply with exemption provisions within this act. As a result, purchasers or holders of memecoins are not protected by federal securities laws.