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The $TRUMP meme crypto coin web page is displayed on a mobile screen in this photo.
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The U.S. Securities and Exchange Commission (SEC) issued a staff statement on February 27, 2025 to clarify its view that most meme coins do not constitute securities under federal law. Described as “akin to collectibles,” these tokens are understood to derive value primarily from social sentiment and speculative demand rather than from profit expectations tied to managerial or entrepreneurial effort.
This interpretive pivot, issued by the Division of Corporation Finance, marked a notable departure from the regulatory posture of former SEC Chair Gary Gensler, whose tenure was both marked and marred by aggressive crypto enforcement, determined by at least one federal court to be an “arbitrary and capricious” overreach of regulatory authority. Under Acting Chair Mark T. Uyeda, and with the pending swearing in of Trump SEC Chair appointee Paul Atkins—a long-time proponent of deregulation—the Commission appears to be embracing a more permissive, market-oriented approach.
The staff guidance is significant in its own right. It signals long-awaited forward progress for the crypto industry and a sizable return for its political contribution investment. Still, the equally sizable legal and ethical implications have become particularly salient in light of recent developments involving the launch of Trump-branded meme coins, $TRUMP and $MELANIA, launched by Trump family’s World Liberty Financial.
What Does A Presidential Meme Mean?
Just days before his January 2025 inauguration, President Trump launched a meme coin bearing his name through a company called CIC Digital LLC, an affiliate of the Trump Organization. The token was accompanied by a similar offering associated with First Lady Melania Trump, marketed under the symbol $MELANIA. Although both tokens were promoted as expressions of community “support” rather than as speculative investment products, the market response was immediate—and substantial. As reported by Rolling Stone, early buyers raked in $6.6 billion in profits, while many other traders collectively lost $2 billion in actual or notional losses, as per Chainalysis data findings.
According to reporting by Reuters, CIC Digital LLC and a related entity, Fight Fight Fight LLC, collectively retained control over 80% of the total token supply. That concentration of ownership, in combination with a rapid price increase, meant that Trump-linked businesses stood to gain approximately $8 billion in token value over a single weekend.
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