The Securities and Exchange Commission (SEC) has issued a statement clarifying that meme coins are not considered securities under federal law. According to the SEC, meme coins are similar to collectibles, with their value derived from speculative trading and market sentiment rather than any inherent value or promise of future income. As a result, sellers of meme coins are not required to register their transactions with the SEC, and buyers are not protected by federal securities laws. However, the SEC notes that any fraudulent transactions involving meme coins could still be subject to enforcement action under other federal and state laws. The decision is seen as a positive development for the cryptocurrency industry, which has been seeking clearer guidance on the regulatory status of digital assets. The Trump administration's SEC has been taking a more favorable approach to the industry, recently dropping an investigation into Robinhood and agreeing to end an enforcement case against Coinbase.