PANews reported on February 28 that the U.S. Securities and Exchange Commission (SEC) Corporate Finance Supervision Division issued guidance on memecoins, stating that memecoins generally do not meet the definition of securities laws and are not subject to federal securities laws. The SEC believes that memecoins are mainly used for entertainment, social and cultural purposes, and their value is driven by market demand and speculation, similar to collectibles, and generally lack practical use or function. Therefore, the purchase and sale of memecoins does not involve the issuance or sale of securities under the Securities Act, and no registration or registration exemption is required.

The SEC cited the Howey test standard and pointed out that Meme coin transactions do not involve investment in enterprises, nor is there a reasonable expectation of profiting from the management efforts of others. The price of Meme coins is mainly determined by market speculation, not the management or operating activities of the issuer. However, the SEC warned that if some Meme coins actually constitute securities or involve fraud, they may face enforcement actions under other federal or state laws.