Commissioner Caroline Crenshaw said that the agency’s working definition of memecoins was vague and could be easily misconstrued.
US Securities and Exchange Commission Commissioner Caroline Crenshaw issued a dissenting opinion on the SEC’s recent stance that memecoins are not securities.
According to the commissioner’s Feb. 27 statement, memecoins could satisfy the Howey test’s condition of profiting from the managerial efforts of others due to the coordination between developer teams and promoters.
The commissioner added that most, if not all, cryptocurrencies could be defined as memecoins under the SEC’s recent guidance, which was released on the same day. In this guidance, the agency stated that memecoins represent online social trends with speculative value and high volatility — and are not securities. Commissioner Crenshaw, however, has a different viewpoint:
