The Blubber

Now that the SEC has stepped back from regulating meme coins, investors shouldn’t count on any oversight or guidance when it comes to $TRUMP, according to longtime commissioner Hester Peirce.

Back in February, the SEC stated it does not consider most meme coins to be securities under U.S. law—effectively removing them from its jurisdiction. The move came just weeks after President Donald Trump launched his own meme token, which surged in value, boosting his paper net worth by billions.

Peirce told CNBC the situation is reminiscent of the NFT boom in 2021: the assets weren’t securities, but they still gained and lost value based on market hype. She said the SEC made a mistake by failing to publicly clarify its hands-off approach back then—and now.

“There was clear public interest in meme coins, and it would’ve made sense for us to say, ‘Look, if you’re expecting SEC protection here, you shouldn’t,’” Peirce said during Bitcoin 2025 in Las Vegas. “You can structure almost anything as a securities transaction, but people need to know not to count on us in this space.”

In other words: buy at your own risk.

Since Trump’s inauguration in January, the SEC has steadily scaled back enforcement in the crypto space, taking a more lenient and industry-friendly stance. That shift has drawn criticism, especially as the Trump family deepens its crypto ties, raising red flags for potential conflicts of interest.

At the center of it all is the $TRUMP token, of which about 80% is controlled by the Trump Organization and affiliated entities. It’s now a core asset in Trump’s growing crypto portfolio.

Like most meme tokens, $TRUMP has no intrinsic value, but after launching in January—just ahead of the inauguration—it soared to a $15 billion market cap, buoyed by Trump’s social media posts like, “It’s time to celebrate everything we stand for: WINNING!”

Within days, the token shed most of its value, though the project’s creators continue to earn transaction fees on every trade.

The White House has told CNBC that Trump’s holdings are managed by a trust overseen by his children, and insists there are “no conflicts of interest.”

But critics aren’t convinced. Senator Richard Blumenthal (D-Conn.), ranking member of the Senate Subcommittee on Investigations, is one of several Democratic lawmakers voicing concern that Trump’s crypto involvement could serve as a backdoor for foreign or corporate influence.