SEC Commissioner Hester Peirce says the agency will stop regulating meme coins like $TRUMP. She warns investors not to expect protection from the US Securities and Exchange Commission (SEC) when buying these kinds of tokens.
The decision shows a clear change in Washington’s attitude toward crypto as leaders, including Trump family members, get more involved with digital assets and support a lighter regulatory approach.
The SEC warns investors to trade meme coins at their own risk
Peirce said meme coins do not meet the legal definition that would require the SEC to intervene.
In her interview, she said, “It made sense for us to say… you should not expect [SEC] protection.” She clarified to investors that the agency will not stop scams, crashes, or manipulation unless the coins break other securities laws.
In February 2025, the agency announced that it does not consider meme coins as securities, weeks after President Trump launched his $TRUMP token.
Trump launched the token before his inauguration in January and urged supporters on social media to celebrate his return to power and “everything we stand for: WINNING!”
The $TRUMP token reached a market value of $15 billion because many people rushed to buy it, thinking its price would keep rising, but it dropped sharply within just a few days.
Reports later confirmed that the Trump Organization and its affiliated companies owned and controlled about 80% of the token’s supply.
The SEC’s hands-off approach has drawn criticism from several Democratic lawmakers. Senator Richard Blumenthal warned that the lack of oversight could allow foreign governments or powerful corporations to invest in $TRUMP tokens and gain political influence in the US, as the president’s family benefits financially without accountability.
In response to these concerns, the White House said there is no legal conflict of interest because Trump’s digital assets are held in a family trust run by his children.
However, lawmakers and watchdog groups aren’t satisfied with that explanation since Trump’s public statements or political actions could still influence trading activity and market moves for the $TRUMP token.
SEC drops case against Binance and cancels old anti-crypto policies
While meme coins like $TRUMP are gripping public attention and regulatory debate, the SEC is also changing how it regulates crypto. The watchdog recently withdrew its lawsuit against Binance and its founder, Changpeng Zhao.
The agency had sued the company over misleading investors, commingling customer money with its own, and giving wealthy Americans access to the platform even though they were not eligible.
Zhao had previously pleaded guilty to money laundering charges in a separate case. However, he served only four months in prison before returning to his large financial empire worth over $67 billion.
During the case, Binance made several moves to protect the company’s interests and form stronger connections with powerful figures in Washington.
Zhao reportedly reached out to Trump’s Justice Department to request a presidential pardon after his legal troubles. Around the same time, Binance launched a new stablecoin called USD1 to channel profits to groups aligned with the president.
A United Arab Emirates government-supported fund invested $2 billion in Binance after the company launched USD1. Meanwhile, some people wonder about the emerging global political webs now enveloping the crypto world.
SEC Commissioner Hester Peirce rejected the suggestion that the agency’s recent announcements were politically motivated. The problem, she said, “was that in the past, the SEC would enforce crypto laws without giving any clear and transparent rules first.”
The SEC repealed its Staff Accounting Bulletin 121, which had locked banks and financial institutions from providing crypto custody. Pierce said the bulletin was “fake law” in that it had not gone through regular public notice and comment procedures.
