Yigit Taha OZTURK 
U.S. Securities and Exchange Commission (SEC) Commissioner Hester Peirce stated that tokens like former U.S. President Donald Trump’s official memecoin, TRUMP, do not fall under the SEC’s jurisdiction.
As reports surfaced that TRUMP token investors have lost a total of $2 billion, Peirce emphasized that most memecoins are not subject to SEC regulation.
TRUMP Token Investors Lose Over $2 Billion
On the same day as Peirce’s statement, The New York Times published a report highlighting the massive losses incurred by TRUMP token investors.
According to data from blockchain analytics firm Chainalysis, at least 813,000 wallets suffered a total loss of $2 billion after purchasing TRUMP tokens.
Launched on January 17, TRUMP token surged to $72.60 on January 19 before plummeting 80%. CoinGecko data shows that the token’s market capitalization dropped from $14.5 billion to $3 billion.
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However, during this period, the Trump Organization and its partners reportedly earned over $100 million in trading fees.
Memecoins Should Be Viewed as “Digital Collectibles”
Memecoins are generally inspired by internet jokes, pop culture references, and celebrity figures. Unlike Bitcoin (BTC) or Ethereum (ETH), which are associated with technological advancements, memecoins primarily rely on community support and celebrity endorsements.
Peirce asserted that the SEC is not the appropriate regulatory body for memecoins, suggesting that the matter should be handled by Congress or the Commodity Futures Trading Commission (CFTC).
ETF Store President Nate Geraci supported Peirce’s perspective, stating that memecoins are more akin to digital collectibles.
Meanwhile, macroeconomist Lyn Alden compared the memecoin frenzy to past trends such as Initial Coin Offerings (ICO) and Non-Fungible Tokens (NFTs), emphasizing that these assets often experience speculative surges and crashes.
“Having observed the crypto space since 2017, I see the same cycles repeating,” Alden stated.
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