The American Securities and Exchange Commission (SEC) officially washes the hands of Memecoins.

The federal securities regulator said that Memecoins -as it defined as a “type of crypto -active inspired by Internet memes, characters, current events or trends that the promoter seeks to attract an enthusiastic online community to buy Memecoin and practice its trade on Thursday. Because Memecoins have” limited or no use or functionality ” -The test and is therefore out of SEC’s jurisdiction.

The statement is a formalization of comments from Commissioner Hester Peirce leader of SEC’s newly created Krypto Task Force, which has been on Vanguard for the Agency’s Reverse Face on crypto-regulation since it was formed in January-recently this month during an interview with Bloomberg TV. In the interview, Peirce said “many” of Memecoins on the market falls outside SEC’s jurisdiction.

“If people want to buy a token or product that lacks a clear long -term value proposition, they should feel free, but should not be surprised one day if the price falls,” Peirce wrote in his Roadmap for Crypto Regulation published earlier this month. “In this country, people generally have a right to make decisions for themselves, but the counterpart to the wonderful American freedom is the equally wonderful American expectation that people should decide for themselves and not look to Mama’s government to tell them what to do or not to do, or to save them when they do something that turns out bad.”

Such legal interpretations from the securities controller do not have the weight of formal regulation, but industries monitored by SEC, and other federal regulators tend to follow these kinds of staff statements closely. The notorious staff Accounting Bulletin No. 121 – Guide known as SAB 121, offered by the agency’s accounting staff – caused turmoil in the crypto sector and the bankers who felt limited by it until Bulletin was deleted by SEC’s current management. In this case, a footnote in the Staff Memecoin declaration points out that it is “not a rule, regulation, guidance or statement” approved by the Commission.

Although Peirce has made it clear that US investors are responsible for making their own pigeon diligence on the tokens they buy, SEC has not excluded the possibility of stepping in and using its enforcement powers in the case of Memecoins used to avoid securities legislation.

“Despite the previous one, this statement is not extended to the offer and sale of meme coins that are incompatible with the descriptions described above, or products labeled” MEME COSTS “in an attempt to avoid the use of the federal security laws by explaining a product that would otherwise constitute a security,” states the staff statement. “As mentioned above, the division will evaluate the economic realities of the particular transaction.”