Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
Stuart Alderoty, Ripple’s chief legal officer, has commented on the recent verdict by the U.S. Securities and Exchange Commission regarding the category of digital assets known as meme coins.
He expressed a positive view on the SEC’s decision about this popular type of crypto, in light of the regulatory agency’s other recent steps targeted at ending its war with the crypto world. That war was started by the SEC’s previous chairman, Gary Gensler.
Meme coins are collectibles, SEC says
In a press release published on Feb. 27, the SEC referred to a meme coin as “a type of crypto asset inspired by internet memes, characters, current events, or trends for which the promoter seeks to attract an enthusiastic online community to purchase the meme coin and engage in its trading.”
It continues by saying that selling meme coins does not constitute an investment contract and does not imply “a reasonable expectation of profits to be derived from the entrepreneurial or managerial efforts of others.”
Therefore, the document labels meme coins as collectibles: “The value of meme coins is derived from speculative trading and the collective sentiment of the market, like a collectible.”
Yuri MolchanAlderoty "approves" SEC's meme coin decision
Alderoty dwelled on this classification, stressing “the beauty” of the SEC’s statement. It has the important factor of simplicity at its core, the CLO says, adding that the agency is now acting without going beyond its jurisdiction. “MemeCoins aren’t securities because they don’t confer rights to income, profits, or assets,” Alderoty said, adding that all decisions by the SEC now should be equally simple and logical for the crypto industry to understand: “This doesn’t have to be complicated.”
Prominent VC investor and supporter of crypto projects Anthony Pompliano also commented on this decision by the SEC. He stated that if the regulator now calls meme coins “collectibles,” then “every asset will become a collectible over time.”
Alex DovbnyaSEC dropping multiple crypto cases
Over the last week, the Securities and Exchange Commission dismissed several major legal cases initiated against prominent crypto companies under the leadership of Gary Gensler, who resigned in January.
The regulator has dropped cases against Coinbase, Robinhood and Uniswap, and yesterday, the dismissal of the legal action against Consensus followed. The community now expects the Ripple case to be next.
Dan Burgin
Vladislav Sopov