With the crypto market sentiment turning to extreme fear unprecedented since the FTX fiasco back in late 2022, the meme coin section received a substantial relief. The U.S. Securities and Exchange Commission (SEC) unleashed a statement, distancing themselves from regulating meme coins in the future.
How Memecoins Just Became Collectibles
The statement by the SEC officials explained that meme coins based on internet culture characters, such as Pepe The Frog-inspired Pepe Token (PEPE) or Dogecoin (DOGE), wouldn’t be classified as securities as these meme coins lack the same functionality. Instead, the mainstream meme coins Shiba Inu (SHIB), Dogecoin (DOGE) and their smaller counterparts are looked at as collectibles.
On top of that, the SEC states that meme coins serve as a means of entertainment, social interaction and cultural purposes. Because of this, crypto traders indulging themselves in memecoin trading are not obliged to register their transactions according to the 1934 Securities Exchange Act.
Sponsored
By halting securities enforcement on meme coins such as Shiba Inu (SHIB), Dogecoin (DOGE) & Pepe Token (PEPE) because of their status as cultural symbols, it’s likely that these enforcement responsibilities will be passed on to the Commodity Futures Trading Commission (CFTC), according to Commissioner Hester Peirce.
SHIB & DOGE Prices Are Yet To Find Floor
Immediately, this positive regulatory development didn’t have an impact on the high-swinging meme coin market. However, both Shiba Inu (SHIB) and Dogecoin (DOGE) bounced back 2% after a double-digit drawdown last night, with Bitcoin (BTC) falling below $80K.
Rising geopolitical tensions, uncertainty around cross-border tariffs and a massive sell-off on the Bitcoin ETF markets heavily contributed towards the bears crunching the prices of both top dog coins. Currently, veteran trader Ali Martinez expects Shiba Inu (SHIB) to find support at $0.00001200.
On the other hand, the scenario of Shiba Inu (SHIB) price adding another zero would send the canine meme coin to retest the support area around $0.0000094. Meanwhile, the largest meme coin asset Dogecoin (DOGE) flopped below $0.20 for the first time since November 7, 2024.
Sliding down to $0.1899 at the time of this publication, Dogecoin (DOGE) continues the freefall despite crypto whales stocking up with 530 million of the top dog crypto coins over the span of 72 hours.
On The Flipside
- The decision to step away from regulating meme coins raised some concerns about market instability.
- If the bar is lowered, fraudulent and ultra-risky meme coin projects could be way easier to launch.
Why This Matters
The American financial regulator’s increasingly lenient stance towards crypto calls for collaboration with the industry, potentially bringing smoother adoption opportunities.
Read DailyCoin’s top crypto news:
HBAR Poised For $0.50? SWIFT Tests Hedera For Instant Banking
SEC Drops Gemini, TRON Cases in Crypto Crackdown Reversal
