Coindesk: Recent SEC Guidance on Memecoins Suggests Broader Policy Change
The Trump administration has taken a pro-crypto policy stance. That’s included several measures that should increase cryptocurrency adoption and use in the years ahead.
The biggest shift came from the creation of a strategic bitcoin reserve (SBR). The initial SBR will hold the 200,000 bitcoin that the U.S. government has acquired over the years. The government has sold off about half of its bitcoin holdings and, in so doing, has lost out on over $18 billion in value.
Meanwhile, other pro-crypto activity abounds.
The SEC is changing its guidance on digital assets. One major change is that so-called memecoins will not be considered securities. That avoids the piecemeal legislative efforts made by prior SEC enforcement actions and lawsuits.
Previously, the SEC treated all cryptocurrencies as digital securities under their regulation. This shift could spur the creation, sale, and promotion of more memecoins. It also suggests that memecoins held in a portfolio are beyond the agency’s reach.
That’s a key point. It suggests that cryptocurrencies held in a digital wallet or in a portfolio should be treated as personal assets. In turn, that means that those transactions are beyond the reach of the SEC.
The decision is a strong move away from the prior regulation-by-enforcement actions. And this new guidance provides more clarity to make institutional investing in cryptocurrencies easier. Over time, that should increase the size and demand in the crypto space, leading to higher prices.