The United States Securities and Exchange Commission (SEC) does not oversee many memecoins, according to regulator’s commissioner Hester Peirce.
Peirce made the remarks during a recent Bloomberg interview. She said when asked whether United States President Donald Trump’s Trump Official (TRUMP) and the first lady Melania Trump’s Official Melania (MELANIA) memecoins have increased the regulator’s workload:
“Many of the memecoins that are out there probably do not have a home in the SEC under our current set of regulations.”
The details
Comments by Pierce follow The New York Times reporting about Trump Official memecoin holders sustaining significant losses. Per the report, TRUMP investors lost $2 billion in weeks while the Trump family and its partners raked in $100 million worth of trading fees.
According to recent reports, Trump Official lost over three-quarters of its value compared to peak prices as of Feb. 3. At the time of writing, the situation had worsened, with the current price of $14.7 80% lower than the all-time high of $75.35 reported on Jan. 19.
Furthermore, blockchain sleuths have also pointed out suspicious trading activity surrounding the presidential memecoin. Onchain analytics firm Bubblemaps investigated a crypto wallet funded with $1 million four hours before the TRUMP memecoin launched, pointing to likely insider knowledge.
Other issues include fake imitation tokens that have flooded the market. Recent reports indicate that crypto analysts have reported 6,800 such fraudulent tokens and 91 fake dApps since $TRUMP was launched.
Trump also keeps increasing his participation in the crypto space in other ways. Trump Media and Technology Group (DJT) — the operator of Trump-linked social media platform Truth Social — recently announced the launch of Truth.fi — acting as a financial services platform focused on cryptocurrencies and exchange-traded funds. Trump Media CEO and Chairman Devin Nunes is quoted in the announcement:
“Truth.Fi is a natural expansion of the Truth Social movement. We began by creating a free-speech social media platform, added an ultra-fast TV streaming service, and now we’re moving into investment products and decentralized finance.”
