The U.S. Securities and Exchange Commission (SEC) has confirmed it will not offer regulatory protection to investors in meme coins like $TRUMP, marking a significant shift in Washington’s stance toward crypto.
The move, announced by SEC Commissioner Hester Peirce during the 2025 Bitcoin Conference in Las Vegas, leaves holders of the Trump-affiliated meme coin exposed to market volatility and potential manipulation.
Speaking candidly, Peirce said, “It’s important for people who are buying those [meme coins] to understand they are not getting the protections of the securities laws.” She emphasized that the SEC is choosing not to interfere with the meme coin market, even when tokens like $TRUMP are tied to high-profile political figures.
$TRUMP Token: A Political and Financial Flashpoint
Launched in January 2025 just ahead of President Donald Trump’s return to office, the $TRUMP token rocketed to a $15 billion market cap before plunging by over 85% in a matter of days. The Solana-based token gained immediate traction, fueled in part by Trump’s social media endorsement urging supporters to celebrate “everything we stand for: WINNING!”
SEC’s Hester Peirce reaffirmed that the TRUMP memecoin falls outside the agency’s regulatory scope. Source: Coin Bureau via X
Reports later confirmed that approximately 80% of the token’s supply is controlled by entities linked to the Trump Organization. While the White House maintains that Trump’s crypto holdings are in a trust managed by his children and pose no legal conflict, critics aren’t convinced.
Senator Richard Blumenthal, a Democrat from Connecticut, has warned of the token’s potential as a “backdoor for foreign and corporate influence” on the presidency. Watchdog groups argue that Trump’s public remarks and policy decisions could indirectly sway $TRUMP’s market value, creating blurred lines between governance and personal gain.
SEC’s Crypto Philosophy Evolves Under Trump
The SEC’s hands-off approach to meme coins is part of a broader regulatory rollback under the Trump administration. In February, the agency clarified that most meme tokens do not qualify as securities under existing federal laws and therefore fall outside its jurisdiction.
Hester Peirce questioned whether securities laws should apply to memecoins, likening them to collectibles. Source: Scottmelker via X
Commissioner Peirce, sometimes nicknamed “Crypto Mom” for her industry-friendly stance, explained, “You can package almost anything into a securities transaction. But generally, it’s good for people to know, I should not be looking to the SEC for protection in this area.”
She went further, urging personal accountability: “Be an adult. If you’re chasing elusive gains in meme coins, don’t come complaining to the SEC when it all goes sideways.”
Regulatory Focus Shifts from Enforcement to Clarity
In a parallel development, the SEC also dropped its long-standing lawsuit against Binance and its founder Changpeng Zhao, ending one of the agency’s most aggressive actions under former Chair Gary Gensler. The case had alleged commingling of funds, misleading investors, and violating U.S. sanctions.
Peirce noted the dismissal reflects a new regulatory approach: writing clearer rules before enforcing them. “We didn’t have a clear set of rules,” she said. “So we’re trying to take a step back, use our regulatory tools to write those rules, and then enforce those rules.”
The agency also recently repealed Staff Accounting Bulletin 121, which had previously restricted traditional financial institutions from offering crypto custody. Peirce called the bulletin “fake law,” noting it bypassed the formal regulatory process.
What This Means for TRUMP Token Investors
With the SEC stepping back, the burden now rests on investors to navigate the meme coin landscape without federal oversight. The $TRUMP token, despite its dramatic volatility, continues to draw attention from both supporters and skeptics alike.
Trump Meme Coin (TRUMP) was trading at around $10.75, down 5.90% in the last 24 hours at press time. Source: Brave New Coin
Peirce floated the idea of a specialized “meme coin commission” to address investor concerns, but said any such move would require congressional approval. Until then, those trading $TRUMP and similar tokens must rely on their own risk assessments.
In the absence of legal protection or market regulation, Peirce offered one final word of advice: “Buy at your own risk.”
Final Thoughts
As meme coins like $TRUMP straddle the intersection of politics, pop culture, and speculative finance, regulators are retreating from the scene. For investors, the message is clear: in this new era of decentralized enthusiasm, there is no safety net — only risk, volatility, and the power of narrative.
