Still, the controversy doesn’t seem to be clouding the outlook for memecoins. At the end of February, US Securities and Exchange Commission staff stated that memecoins are not considered securities. The SEC staff compared memecoins to collectibles, noting they have limited or no use or functionality and are often accompanied by statements about their risks and lack of utility. As a result, people who offer and sell memecoins do not need to register with the agency, and buyers are not protected by federal securities laws.