NBC News: Elizabeth Warren questions SEC chair on meme coin guidance after Trumps' tokens launch

Sen. Elizabeth Warren, the ranking member of the Senate Banking, Housing and Urban Affairs Committee, is seeking information from the Securities and Exchange Commission over its decision to relax federal regulations around meme coins weeks after Trump and first lady Melania Trump released their own versions.

The SEC defines a meme coin as a type of crypto asset inspired by internet memes, characters, current events, or trends. In a staff statement last month, the agency said because of its view that meme coins are typically purchased for entertainment and social interaction rather than financial value, owners of the asset do not have to abide by federal regulations.

“Persons who participate in the offer and sale of meme coins do not need to register their transactions with the Commission under the Securities Act of 1933,” a February statement from the agency reads. “Accordingly, neither meme coin purchasers nor holders are protected by the federal securities laws.”

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