The pieces even have been a big problem now that they have become scandals of $ 1 billion, and the reputation of the cryptographic industry is in danger as the frenzy of the pieces even develops.
A coin, often supported by celebrities, follows the same scheme: it goes up before crashing, burning the investors each time, with only the initiates who earn money. Look at what has happened in recent months with pieces even associated with Donald Trump, Melania Trump, Dave Portnoy, Argentina / Javier Milei, Hailey Welch / “Hawk Tuah Girl” and others.
Now, the Division of corporate financing staff under the American Commission for Securities and Exchange said that the documents even do not constitute an offer or a security sale that would violate federal securities laws.
“As such, people who participate in the offer and sale of documents even do not need to record their transactions with the Commission under the ACT Securities of 1933 (` Sécurities Act ”) or fall under one of the exemptions from the securities law of the registration.
The SEC ultimately said that most coins are not titles. Depending on the agency’s financing staff division, the parts even “generally have use or functionality or functionality limited or not” and are “more similar to collectibles”.
THE statement said: “A piece of memes does not constitute any of the common financial instruments specifically listed in the definition of” security “because, among other things, it does not generate yield or does not transmit rights to future income, profits or assets of a company. In other words, a piece of meme is not itself security.”
The SEC staff note indicated that several financial instruments, such as “actions”, “note” and “obligation”, are defined as “guarantees” in the securities law for several reasons, including the fact that it does not provide a return or a subsidy to access to the future benefits of a business, assets or income, a piece cannot be considered as “security” under the definition of instruments. financiers.
The pieces even are not titles in itself and, as such, cannot be “investment contracts”.
SEC staff referred to the Howy test to offer this. The staff noted that when evaluating the financial aspects of an agreement, the Howey test examines whether someone put money or not in a company with the idea that he will make a profit through management or entrepreneurial efforts of others
The press release indicated each time “the efforts made by those other than the investor is undeniably important, these essential management efforts which affect the failure or success of the company”, and the federal courts have declared that this constitutes the “efforts of others” necessary to satisfy the “efforts of others” of Howey.
Obviously, the SEC also envisages documents even under a pro-Crypto administration as a threat to the digital asset industry.
Clarification follows the recent increase in same since the election of President Donald Trump, as well as their decline in recent weeks.
This represents another achievement for the new administration, which is committed to establishing more transparent and potentially advantageous regulatory conditions for the cryptocurrency sector and to accelerate this process.
In January, during the peak of the frenzy of the same induced by Trump, the CEO of Coinbase Brian Armstrong on X declared: “We must rethink our registration process at @coinbase since there is ~ 1 m of tokens per week being created now, and a growing high quality problem, but to assess each one is no longer possible.”
We must rethink our registration process to @coinbase Since there are approximately 1 m of tokens per week being created and growing. High quality problem to have, but to assess everyone by one is no longer possible. And regulators must understand that the request for approval for everyone is …
– Brian Armstrong (@brian_armstrong) January 26, 2025
But the real question is: the enthusiasm of the room even
Argentina and the cryptocurrency community are still in shock from the most recent controversy of the same.
During the first hour after its release, the value of the scale, a piece of memes, defended by President Javier Milei of Argentina, increased to $ 4.5 billion. However, the excitement did not last.
Argentine president Javier Milei faces accusations of fraud after approving the crypto $ balance token
Argentinian president Javier Milei faces accusations of fraud after promoting and deleting a message on $ Balance, a crypto token that has crashed later in value
Investors were left in shock when the token dropped 80% in a few hours.
The repercussions were dramatic. Milei is currently the subject of numerous surveys for his role, and attempts are made to remove it.
This happens all the time.
Formerly a strange mashup of culture and internet money, memes parts are now dangerous speculative investments. Although some first investors take advantage of it, most lose a lot of money.
Almost all the mecoins approved by celebrities experienced a price drop of more than 99% of their peak, according to Coingecko data.
More than 10,000 cryptocurrencies are used today, and an increasing part of this number are meme parts, which often lack support or practical use. These speculative tokens distance attention from the legitimate blockchain initiatives. Platforms like Pump.fun quickly gained popularity, accelerating the trend.
This low -code launchpad has fueled a series of dubious initiatives, allowing users to make parts even with a minimum of effort.
What is the result?
With programs involving the “Pump and Dump” method, in which retail investors are attracted before early adopters benefit from the rest of the market, legislators pay even greater attention to Washington.
The recent creation of $ Trump, followed by a similar action by Melania Trump ($ Melania), caused a lot of control.
The supporters of the cryptocurrency fear that these plans can thwart efforts to finally define the rules of digital assets. ETF supported by cryptocurrencies like Bitcoin and Ethereum quickly become a pillar at Wall Street. The sector faces a critical junction as even collapsed, causing billions of dollars in losses. Stablecoins and other important projects make progress in the payment system,
The concerns among investors and regulators concerning speculation on memes parts have increased. According to VC Investors, the parts even portray the cryptocurrency sector as an “value extraction industry” instead of a place where real innovation can take place.
A possible tilting point is the scandal of the balance.
The initiates of the cryptographic industry require more regulations to distinguish renowned and speculative projects, because regulators provide new executives.
Will the growing number of high-level failures finally finish forcing cryptographic activities to improve its practices?
The pieces even, which are in thousands of people, represent the highest level of risk.
When adjusted for market capitalization, there are three to four times more actively negotiated than Bitcoin and Ether, which made them attractive options for novices who believe they have missed the opportunity with the two largest cryptocurrencies.
Historically, they served as a retail indicator of retail and risk tolerance in cryptos, but most of the market players are strongly warned against them.
Despite their speculative essence and their lack of inherent value, they are largely considered as a vital segment of the cryptography market and a crucial aspect of Internet culture which embodies the origins of the cryptographic community, ethics and decentralized nature.
