Here’s a rewritten version of the article, refined for clarity, professionalism, and better narrative flow while preserving the original meaning:
SEC Steps Back from Meme Coin Oversight Amid Trump’s $TRUMP Token Surge
LAS VEGAS — As the U.S. Securities and Exchange Commission (SEC) retreats from regulating meme coins, investors shouldn’t expect any formal oversight or guidance—especially when it comes to controversial tokens like $TRUMP, according to long-serving SEC Commissioner Hester Peirce.
Earlier this year, the SEC declared that most meme coins do not qualify as securities under federal law, effectively placing them outside the agency’s regulatory scope. This shift came just weeks after former President Donald Trump launched his own meme coin, $TRUMP, which quickly surged in value, temporarily boosting his paper net worth by billions.
A Familiar Scenario for the SEC
In an interview with CNBC at Bitcoin 2025 in Las Vegas, Peirce compared the current meme coin trend to the rise of NFTs in 2021—digital assets that also saw rapid valuation swings driven by investor hype rather than fundamental value.
“There was a lot of interest in meme coins, and it made sense for us to publicly clarify: if people are expecting SEC protection here, they shouldn’t,” said Peirce. “Yes, anything can be packaged into a securities transaction, but in general, people need to understand the SEC isn’t your safety net in this space.”
Translation: invest at your own risk.
A Softer Stance on Crypto Under Trump
Since Trump returned to office in January, the SEC has pulled back on crypto enforcement, signaling a more industry-friendly approach. The change has sparked criticism, particularly as Trump and his family become more deeply involved in the digital asset space—a move that some Democratic lawmakers view as a conflict of interest.
The $TRUMP token has emerged as a key symbol in Trump’s growing crypto footprint. Despite having no intrinsic value, the token hit a $15 billion market cap shortly after its January debut—driven largely by Trump’s enthusiastic promotion on social media, including posts declaring:
“It’s time to celebrate everything we stand for: WINNING!”
Much of the token’s value has since evaporated. Yet, transaction fees continue to funnel money to the creators and affiliated entities—many of which are linked to the Trump Organization, which reportedly controls 80% of the coin’s supply.
Ethical Concerns and Legal Scrutiny
While the White House insists Trump’s assets are held in a blind trust managed by his children and that “there are no conflicts of interest,” critics aren’t convinced.
Sen. Richard Blumenthal (D-Conn.), ranking member of the Senate Subcommittee on Investigations, has joined a growing chorus of Democratic lawmakers questioning whether Trump’s crypto ventures create a backchannel for foreign or corporate influence over the presidency.
Conclusion
With the SEC stepping away from regulating meme coins, tokens like $TRUMP are operating in largely unregulated territory. While some investors see opportunity, others see risk and political controversy. As Washington continues to debate the future of crypto oversight, one thing is clear: the intersection of politics, profit, and digital currency is only getting more complicated.