From Memes To Millions: Regulating Celebrity-Backed Crypto Offerings – Fin Tech
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On February 27, 2025, the US Securities and Exchange
Commission’s (SEC) Division of Corporation Finance issued
a
staff statement (the Statement) clarifying that
“meme coins” will generally not be classified as
securities under federal law. The SEC determined that meme coins do
not typically meet the definition of security under the test
established in SEC v WJ Howey
Co,1 the leading jurisprudence for determining
what constitutes a security, meaning they would not fall under the
SEC’s jurisdiction. Although staff statements are not
official rules or regulations, this announcement signals a
potential shift in the SEC’s…
