Senator Elizabeth Warren and Representative Jake Auchincloss have expressed concerns over a recent decision by the Securities and Exchange Commission (SEC) regarding meme coins. In a letter to the SEC, they questioned a new Staff Statement from the SEC's Division of Corporate Finance. This statement suggests that those involved in offering and selling meme coins are not subject to federal securities laws.
The timing of this announcement has raised eyebrows, as it follows closely after President Donald Trump and First Lady Melania Trump launched their own meme coins, $TRUMP and $MELANIA. The lawmakers noted that this interpretation could potentially exempt these coins from regulatory oversight.
The letter also highlights broader issues with recent SEC actions perceived as favoring cryptocurrency firms over retail investors. According to the lawmakers, "The Staff Statement is, notably, just one of many recent SEC actions aiming to arbitrarily deregulate the cryptocurrency industry." They pointed out that in the past two months alone, the SEC has dropped significant lawsuits against major cryptocurrency platforms like Coinbase, Binance, and Kraken.
This development comes as the SEC's Crypto Task Force prepares for its first roundtable discussion aimed at evaluating its authority over crypto markets concerning fraud and scams.
"It is essential that the Commission issue policy proposals designed to benefit the American public—not the President’s bottom line," emphasized Senator Warren and Representative Auchincloss in their communication with the SEC.