The Meme Coin Fiasco: How The SEC’s Ruling Could Set Back Crypto

Dogecoin and Shiba Inu Meme Coin (Photo Illustration by Jakub Porzycki/NurPhoto via Getty Images)
NurPhoto via Getty Images
On February 27, 2025, the U.S. Securities and Exchange Commission announced that meme coins, cryptocurrencies inspired by internet memes, jokes, and trends, are not considered securities.
The news follows a series of dismissed cases by the SEC against crypto companies, sparking further debate about the role of meme coins in the broader crypto ecosystem. While this decision provides much-needed clarity, it may embolden a growing trend that undermines the legitimacy and future of cryptocurrency as a whole.
Meme Coins Evolve from Joke to Risky Speculative Trend
The rise of meme coins began innocuously with Dogecoin, a digital asset launched in 2013 as a joke. However, over the years, it has transformed into a phenomenon, inspiring countless other coins with little more than memes or cultural references as their value propositions.
The problem with meme coins is glaring: They lack any inherent utility and function primarily as speculative gambling vehicles.
Essentially, they are nothing more than pump-and-dump schemes, with their value inflated by hype and media buzz before inevitably crashing, leaving investors with worthless assets.
The recent launch of Donald Trump’s self-proclaimed $TRUMP meme coin, which appeared to be an attempt to capitalize on his second inauguration, only reinforced the absurdity of this trend. The $MELANIA coin followed closely behind and eventually even a meme coin inspired by Binance's former CEO, CZ’s dog, "Broccoli."