• SEC’s Uyeda clarified that memecoins, PoW assets, and non-interest-paying stablecoins are not securities
• New SEC staff guidance and ongoing public participation will help craft the next crypto regulatory framework

Mark Uyeda, the SEC’s Commissioner and Former Acting Chairman, is in the news today after he reiterated the agency’s position on memecoins as non-crypto securities. In a CNBC interview, he said,

“We’ve clarified things like memecoins, stablecoins that do not pay interest, Proof-of-Work (POW), are generally not a security.”

Uyeda noted that these assets don’t contain any investment contracts with buyers. Hence, they don’t quite fall within the security definition or ‘Howey test.’

SEC greenlights memecoins

His statement echoed a similar agency’s staff guidance issued on 27 February. Part of the statement read, 

“It is the Division’s view that transactions in the types of meme coins described in this statement, do not involve the offer and sale of securities under the federal securities laws.”

However, the agency warned that any products labelled “memecoins” to avoid registration, yet expected to make a profit via others (managers, etc), would be evaluated accordingly. 

That being said, a flurry of altcoin and memecoin ETFs have been submitted for the agency’s approval.

Right now, Dogecoin [DOGE] leads the spree of ETF applications. According to the predictions site Polymarket, approval odds are now 50/50 by the end of 2025 and 25% by July. 

Simply put, the market isn’t sure whether the regulator will greenlight the DOGE ETF or discard it. 

According to Uyeda, the agency will now push for principle-based regulations as part of its next steps in the regulatory pathway.

The ongoing round-table discussions led by the regulator’s Crypto Task Force will inform the expected framework for the industry.