The recent SEC guidelines for Memecoins suggest a wider policy change.

SEC’s recent Memecoin guidelines are more than meeting eyes. On February 27, the company’s employees of the corporate finance department presented MEMECOINS (SEC’s trend to attract passionate online communities with Internet memes, characters, current events, or promoters, ”he said.

This is almost identical to the transition to the former chairman Gary Gensler, consistent with the former chairman’s efforts to assert the regulatory power of the entire digital asset industry, and can affect the industry beyond Memecoins.

The BIDEN administration’s attempt to regulate digital assets was significantly different from the Supreme Court’s so -called “Howey Test,” which decided whether the transaction was related to the “investment contract”. Howey must invest money in a general company in anticipation of profits from other people’s efforts.

In the SEC’s execution measures on the digital analytical exchange of the SEC, the defendant insisted that the secondary market resale of the digital assets is not enough because the investor’s fund is not “pooled” by the developer in the secondary market of digital assets. For example, in the case of a SEC on Kraken, the agency is a developer’s “revenue?” No ~ “I need it under Howey.”

The new guidelines of the SEC check the opposite. MEMECOINS buyers say that the funds are not invested in a joint company because they are not gathered together so that promoters or other third parties can be deployed to develop coins or related companies. This guideline also explains that Memecoin buyers do not expect benefits from other Howey requirements, other Howey requirements. Rather, the value of Memecoins comes from “speculative transactions and collective emotions, collectable”.

The Memecoin guideline of the SEC is the most clear result of Memecoins’ sales and promotion, which is the topic of the recent personal response raised by the individual manuscript. However, it has a greater impact on all secondary market transactions of digital assets, including exchange. In the second market transaction for exchange, the buyer’s funds are “not collected together for promoters or other third parties to develop coins or related companies.” Therefore, the SEC is now under the appropriate application of Howey. As the accused constantly insisted in the previous execution of the SEC, these transactions are beyond the reach of the institution.

This doctrine reversal may be part of the SEC’s recent decision to voluntarily dismiss some of the secondary market transactions and to maintain the additional procedures of others.

Certainly, the new guidelines of the SEC include “(agency) employees’ opinions, not necessarily the SEC itself, but” no legal force or consequences. “The SEC also attempted to limit the guidelines for” Meme Coins’s proposal and sales “in certain situations described elsewhere in the release.

The organization was able to escape the instructions at some point in the future using these boiler plate recitals. However, the constitutional principles of enemy legal procedures and fair notifications can limit the ability of institutions to impose retroactive responsibilities based on the future flip flop. In addition, the guidelines of the SEC are not binding in the court, but due to the change of the pooling position of the SEC, it is incredibly difficult that most digital assets are sold as securities.

The SEC’s guidelines for Memecoins are consistent with the recent stages of the institution to withdraw from the regulatory group approaches that harass the industry under the former chairman Gary Gensler. And this guideline provides the welcome clarity of the institutions in the region where the previous approach to the institution has greatly blurred the water. In short, it is an important stage in the correct direction for the US encryption method and policy.