The US regulatory institution has officially decided that the securities and the stock market commission (SEC) are not securities. He said that these digital assets do not have any function, return or corporate support in the real world ”. According to a statement on Thursday, February 27, it was decided that transactions containing Memecoins were not required to be registered in accordance with the laws of Federal Securities.
It will not make any application against Secene Memecoins
In the SEC decision, the Memecoins were purchased for “collection similar to collection” and usually for “entertainment, social interaction and cultural purposes, and its value was determined only by market demand and speculation.
The statement said, “fraudulent behaviors related to the sale of Memecoins may be subject to sanctioning or prosecution by other federal or state institutions in accordance with other Federal and State laws”.
Memecoins failed at the Howy Test
Post determines whether a being is described as securities and by applying the Howy Test. According to the commission, Memecoins are not part of a larger business. There is no central team that brings together funds to improve a business, and buyers do not invest in a structured project waiting for long -term growth.
Values, such as collection items, such as exaggeration and collective emotion indicating that the commission, these for an investment contract for the criteria of the Howey test, he said. SEC statement, “Memecoins who participate in the proposal and sale of the commission does not need to register the commission,” the statements took place.
However, he warned that frauds containing SECOins can still be sanctioned by other federal or state regulators. Although the Memecoins are not securities, they will be on the radar of the Commission to mislead investors or similar fraud.
