SEC Commissioner Hester Peirce has made it clear: meme coins like $TRUMP fall outside the agency’s jurisdiction. Speaking at the Bitcoin 2025 conference in Las Vegas, Peirce emphasized that the SEC will not be stepping in to regulate such tokens, despite their growing popularity and controversy.
The $TRUMP coin, which experienced a rapid rise and fall shortly after its January launch, is largely controlled by entities linked to the Trump family. Its volatile performance and political connections have sparked concern among Democratic lawmakers, but Peirce says investors should not expect protection from the SEC.
According to Peirce, the current situation mirrors the 2021 NFT boom. “You can package almost anything into a securities transaction,” she told CNBC. “But generally, it’s good for people to know, I should not be looking to the SEC for protection in this area.” Her message to investors: proceed at your own risk.
This stance marks a significant shift from the Biden-era approach, as regulators now adopt a more crypto-friendly tone in Washington. In February, the SEC announced it does not consider most meme coins to be securities under U.S. federal law, effectively removing them from the agency’s oversight. That declaration came just weeks after former President Donald Trump launched the $TRUMP token, which briefly pushed his paper net worth up by billions.
The coin, despite having no intrinsic value, hit a $15 billion market cap soon after its debut, driven by Trump’s own social media promotion. “It’s time to celebrate everything we stand for: WINNING!” he declared. But the rally didn’t last. Within days, the token crashed, though transaction fees continue to generate profits for its creators. Reports indicate that 80% of the token is held by the Trump Organization and related entities.
The White House has denied any conflicts of interest, stating Trump’s assets are held in a trust managed by his children. Still, lawmakers like Sen. Richard Blumenthal (D-Conn.) warn that the Trump family’s crypto activities could provide a pathway for foreign or corporate influence over the presidency.
At the same time, major crypto players are re-emerging. This week, the SEC dropped its years-long lawsuit against Binance and its founder Changpeng Zhao—once the target of one of the agency’s most aggressive enforcement actions. Zhao had pleaded guilty to money laundering charges in 2023, serving just four months in prison. Despite the conviction, he has maintained control over much of his crypto empire, now valued at over $67 billion by Forbes.
In the lead-up to the SEC’s dismissal, Zhao expanded ties with Trump-aligned networks. Binance prepared to launch a new stablecoin, USD1, which channels profits to Trump-affiliated entities. Around the same time, Zhao sought a presidential pardon and Binance secured a $2 billion investment from a UAE state fund.
Peirce denied that the SEC’s decisions were politically driven, citing a lack of regulatory clarity. “We didn’t have a clear set of rules,” she said of the Binance case. “We’re trying to take a step back, use our regulatory tools to write those rules, and then enforce them.”
That logic also applied to the SEC’s January move to withdraw Staff Accounting Bulletin 121, a controversial directive that had discouraged banks from offering crypto custody services. “It wasn’t even a rule,” Peirce said. “It didn’t go through the normal process—it was just a pronouncement.” She argued that the bulletin unfairly excluded traditional custodians from participating in the crypto sector.
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