- Peirce warned meme coin investors face high risk, possible total loss, lacking safeguards applied to registered securities.
- Creating a meme coin commission for oversight requires Congressional approval; SEC currently cannot regulate these tokens directly.
Hester Peirce, a commissioner at the US Securities and Exchange Commission, clarified at the Bitcoin Conference in 2025 that meme coins lie outside the agency’s jurisdiction. She made it clear that the SEC cannot intervene when tokens like TRUMP change hands.
Her statement arrived amid growing debate over the TRUMP token, launched in January on Solana. Democrats have raised alarms, arguing that the president’s political influence played a part in its rapid rise. However, Peirce stressed that regulatory limits prevent the SEC from offering investor protection in the meme coin market.
During her address, Peirce reminded attendees that meme coins carry high risk. She pointed out that buyers must understand they do not receive the safeguards that come with registered securities.
Thus, she warned investors to prepare for the possibility of total loss. She referenced her earlier comments to a Bloomberg reporter, where she said the same about most meme tokens. In both cases, her message was consistent: investors should act responsibly and avoid relying on the SEC for rescues.
The TRUMP token briefly reached $75 a few days after its debut. Soon afterward, its value fell by 85 percent. That sharp drop fueled claims that the token served as a pump-and-dump scheme. Yet, the White House dismissed these allegations as false. Peirce declined to weigh in on political disputes. Instead, she encouraged individuals to perform detailed research before buying any meme coin.
Moreover, Peirce discussed the idea of forming a “meme coin commission” to address investor fears in this market segment. She emphasized that creating such a body would require action from Congress.
As things stand, the SEC cannot oversee meme tokens directly. Consequently, any new oversight mechanism must follow legislative approval. This means that, for now, the burden of risk assessment falls squarely on the investor.
Finally, Peirce said the SEC’s Division of Corporation Finance recently clarified that certain staking activities on proof-of-stake networks do not constitute securities transactions. Still, she cautioned that every project must assess its own structure to avoid regulatory issues. In her view, clear rules will help firms operate with confidence.
Overall, she urged market participants to perform due diligence and recognize that, until Congress acts, meme coins like TRUMP remain outside federal securities protection.
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