SEC’s New Memecoin Guidance Signals Shift in Cryptocurrency Policy: Implications for Market Regulation

COINOTAG News reports on March 11th that a legal expert from Gibson Dunn has highlighted implications of the recent memecoin guidance issued by the SEC. This guidance signals a potential shift in the SEC’s approach to cryptocurrency regulation and could impact the applicability of the Howey Test. Historically, the SEC has held that memecoins do not qualify as securities as their investments do not pool funds for a specific project, instead relying on market speculation and investor sentiment. This new perspective contradicts the SEC’s earlier positions in various lawsuits against crypto exchanges, which could influence the trading landscape for digital assets across all secondary markets. Analysts suggest that this development marks a significant pivot from the stringent regulatory framework established during Gary Gensler’s tenure, thereby providing a clearer trajectory for cryptocurrency regulation in the U.S.