Hester Peirce, a commissioner of the SEC, stated that most memecoins, including the Official Trump (TRUMP) token, do not fall under the SEC’s jurisdiction. This assertion comes amid reports of approximately $2 billion in losses for investors in the TRUMP memecoin over a short period. In a Bloomberg interview on February 11, Peirce indicated that memecoins do not fit under current SEC regulations and suggested that their regulation is a matter for Congress or other agencies to address. TRUMP's price has reportedly dropped around 80% since a recent peak, leading to significant losses for approximately 813,000 crypto wallets. In contrast, it was reported that the Trump Organization and its partners have profited around $100 million in trading fees from the token. Peirce compared memecoins to collectibles rather than technological advancements such as Bitcoin and Ether, emphasizing that another government entity like the CFTC might be a more appropriate regulatory body for them.

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