Caroline Crenshaw, a Democratic commissioner of the U.S. Securities and Exchange Commission (SEC), expressed concern over the agency’s new guidance on memecoins. She believes SEC’s decision that memecoins are not assets and are merely ‘digital collectibles’ misrepresents the SEC’s jurisdiction. Crenshaw suggests that the guidance implies memecoins might fall outside of SEC oversight. She questioned the lack of a clear legal definition for memecoins and warned that this guidance could serve as a roadmap for digital asset companies to evade scrutiny by labeling themselves as memecoins. She also challenged the advisor’s claim that memecoin prices are solely determined by market sentiment, emphasizing that memecoin creators often attract buyers through supply manipulation and explicit promises about future developments. Crenshaw called for stricter oversight and legal transparency in crypto markets.
