$TRUMP, meme coins won't be protected by SEC, Commissioner Hester Peirce says

LAS VEGAS — The Securities and Exchange Commission (SEC) has stepped back from regulating meme coins, leaving investors without guidance on tokens like $TRUMP, according to Hester Peirce, a seasoned commissioner at the agency. Earlier this year, the SEC declared that it does not classify most meme coins as securities under U.S. law, effectively removing them from its regulatory scope. This decision came shortly after the launch of President Donald Trump's meme coin, which saw a meteoric rise in value, significantly boosting his estimated wealth. Speaking with CNBC at the Bitcoin 2025 conference, Peirce compared the current situation to the NFT boom of 2021, where these digital assets also fluctuated in value but were not classified as securities. "The SEC missed a key opportunity to clarify its stance on meme coins to investors," Peirce stated. "People should not expect SEC protection in this area." Essentially, this means that investors are entering at their own risk. Since Trump's inauguration, the SEC has adopted a more lenient approach towards cryptocurrency regulation, a move that has drawn criticism as the Trump family becomes more entrenched in the crypto landscape, raising concerns about potential conflicts of interest. The $TRUMP token, predominantly owned by the Trump Organization, has become a focal point in Trump's crypto ventures. Despite lacking intrinsic value, the token surged to a market cap of $15 billion shortly after its introduction, spurred by Trump's social media promotions. However, it quickly lost most of its worth, although the creators still profit from each transaction. The White House maintains that Trump's assets are managed by a trust overseen by his children, denying any conflicts of interest. Nevertheless, Democratic Senator Richard Blumenthal has voiced concerns that the Trump family's crypto investments could provide a gateway for foreign and corporate interests to exert influence. In another development, the SEC has withdrawn its long-standing lawsuit against Binance and its founder Changpeng Zhao, marking the end of one of the most rigorous enforcement actions initiated by former SEC Chair Gary Gensler. Binance was accused of misleading investors and mishandling customer funds, yet Zhao returned to the crypto scene after a brief prison sentence for money-laundering violations. His net worth is now estimated at over $67 billion. Leading up to the lawsuit's dismissal, Zhao has forged connections with Trump-affiliated networks, and Binance is set to introduce USD1, a stablecoin that channels profits to Trump-aligned entities. Peirce dismissed claims of political motivations behind the SEC's actions, emphasizing the need for clearer regulatory frameworks. "We didn't have a clear set of rules," she explained regarding the Binance case. The SEC's recent actions reflect a broader strategy to clarify regulations rather than enforce politically-driven decisions, she added. This philosophy also prompted the SEC's January decision to revoke a controversial directive that had hindered traditional financial institutions from engaging in crypto custody, which Peirce noted had effectively barred experienced custodians from the crypto ecosystem.