the new US regulation excludes them from securities
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The new regulation on memecoins in the USA excludes them from the definition of security. Using the Howey test, even the offering and sale of a meme crypto do not fall under the definition of “part of an investment contract”. Memecoin and the regulation of the SEC in the USA: the new definition On February 27, the staff of the Division of Corporate Finance of the United States Securities and Exchange Commission (SEC) published a guide that provides new regulation on memecoins. First and foremost, the definition of memecoin is as follows: “A “memecoin” is a type of crypto asset inspired by memes, characters, current events, or internet trends for which the promoter seeks to attract an enthusiastic online community for the purchase of the meme coin and its trading.” The new USA regulation on memecoins also states that their purchase generally occurs for entertainment, social interaction, and cultural purposes. Not only that, it is clearly stated that their value is determined by market demand and speculation. This is a clear and straightforward definition that excludes memecoins from being considered as securities. In this sense, the new regulation also excludes that neither the buyers nor the holders of memecoins are protected by federal securities laws. Memecoin and new USA regulation: they are not securities nor part of an investment contract In general, the term “security” refers to all those financial instruments such as “azioni”, “note”, and “obbligazioni”, which generate a return or convey rights to future income, profits, or assets of a company. From here, it is clear that, according to the new SEC regulation in the USA, memecoins are not securities. At the same time, as has happened in the past, the new regulation also aims to clarify whether the offering and sale of memecoin can be defined as…
Filed under: News - @ March 11, 2025 8:28 am