The American Securities and Exchange (SEC) commission has published a statement by personnel explicitly declaring that the documents even are generally not considered as securities under the federal law.
Released on February 27, 2025, the declaration brings clarity for the cryptocurrency sector after years of regulatory uncertainty surrounding the classifications of tokens.
In its directives, the SEC said that the documents even “generally have limited or not functionalities” and do not need to be registered with the Commission under securities laws.
The new position of the dry brings clarity after years
The new position of the dry on the parts even addresses long -standing questions directly on the way in which these assets must be dealt with under federal securities on securities.
In a clear language, the regulatory body declares that “a piece of memes is not itself a guarantee” because it does not “generate a return or to transmit rights to future income, the profits or assets of a business”.
The advice specifically indicates the characteristics that separate Corners Titles, noting that they are “generally purchased for entertainment, social interaction, speculative objectives and cultural relevance”.
By focusing on these use cases rather than investment expectations, the SEC mentioned a framework that separates the tokens even from investment contracts as part of the Howy test.
The test was the main method to determine whether cryptographic assets are considered to be titles.
However, the declaration also includes warnings and significant warnings. The SEC stresses that “the pieces even generally have limited or not functionalities” and explicitly notes that “neither the buyers of memes nor the holders are protected by the federal laws on securities”.
The time of these advice is particularly notable because it arrives in the middle of an in -depth examination of the sector of the same as a result of several large -scale incidents, including the peak of evaluation of $ 4 billion in the Milei part and the recent security violation in Pump.fun which led to the promotion of fraudulent Tokens.
Pump.fun income then collapsed
Pump.fun, once the epicenter of the creation of money even on Solana, saw its daily income drops spectacular to just over $ 1 million.
This marks a major drop compared to its peak of January 25 of $ 15.38 million, according to Defilama data.
The current levels of income of the platform fell on the figures observed for the last time in early October 2024.
The activity metrics of the platform show a drop on all key indicators. In the past 24 hours, around 27,700 tokens have been created on pump.fun, but only 0.88% were successfully launched.
The launches of tokens went from more than 70,000 daily creations on January 23 to around 25,000 by February 26, on the basis of the analysis data.
This collapse of income follows a period of growth in Pump. Fun throughout 2024, during which the platform contributed to the launch of more than 5.7 million new projects and generated more than $ 400 million in revenues.
Several factors have contributed to the current slowdown. Balance token incident involving Argentinian President Javier Milei has exposed problematic aspects of the ecosystem of the room even when his evaluation quickly climbed to $ 4 billion before collapse.
This high -level case damaged the perception that the parts even offered of “fair launch” opportunities where retail investors could also compete with larger players.
Security problems have still eroded confidence in the sector. On February 26, Pump.fun’s X account was compromised and used to promote a false governance token called Pump as well as other fraudulent documents.
Regulatory clarity comes as the perception of investors of the change of memes currency
The new position of the dry on the parts even comes during a change in the feeling of investors towards the sector formerly underway.
While 2024 considered the coins marketed as “fair launch” opportunities where retail investors could theoretically compete on an equal footing with institutional actors, recent events have challenged this concept.
The incident of the Milei-Libra part turned out to damage the reputation of the sector. Market observers note that the initial attraction of parts even began in part of their positioning as an alternative to the launches of tokens dominated by venture capital.
The clarification of the SEC according to which the holders of memes money “are not protected by federal laws on securities” serves as a significant warning to investors at a time when the sector faces an increased exam.