TRUMP Token Tumbles $2B; SEC Says ‘Not Our Jurisdiction’ – Who Will Protect investors?

• Since its January debut, the Solana-based TRUMP token has faced allegations of political exploitation and accusations of being a pump-and-dump scheme.
• Amid scrutiny of the TRUMP token, the SEC also clarified on May 29 that most cryptocurrencies and certain proof-of-stake staking activities do not qualify as securities.

Hester Peirce, the Commissioner of the U.S. Securities and Exchange Commission (SEC), also popularly known as the crypto mom, stated that the securities regulator won’t be regulating meme coins like the TRUMP token as they fall out of their jurisdiction. TRUMP Coin has been facing extreme volatility over the past month, oscillating between the low of $10.43 and the highs of $11.0.

The TRUMP Token Faces Growing Scrutiny from Democrats

The TRUMP token has been under scrutiny amid growing concerns from Democrats about the rising involvement of the Trump family and other projects launched in the market. Additionally, as reported by CNF, the US President also hosted a crypto dinner in May, exclusively for the holders of the TRUMP Coin. Critics have raised alarms about potential risks to investors and have called for regulatory intervention.

Addressing the issue at the 2025 Bitcoin Conference, Commissioner Peirce reiterated that the SEC cannot act against the TRUMP token or other meme coins. She explained that such tokens do not meet the criteria to be classified as securities under existing laws, placing them beyond the agency’s oversight. While reiterating her earlier stand that the regulator wouldn’t get involved in meme coins, Hester Peirce stated:

It’s important for people who are buying those to understand they are not getting the protections of the securities laws.

In a direct message to users, Peirce stated, “Be an adult,” advising against expecting regulatory recourse if speculative bets on meme coins result in losses. Her remarks underscore the need for personal accountability in navigating the volatile and unregulated meme coin market, including the TRUMP token..

The Rise And Fall of Donald Trump’s Meme Coin

The Solana-based TRUMP token has been in controversy since its January launch. After a stellar rise to an all-time high of $75 shortly after its debut, critics, particularly from the Democratic Party, accused President Trump of leveraging his political position to boost personal wealth through the token.

However, the token’s dramatic 85% decline in value has fueled fresh allegations of it being a pump-and-dump scheme designed to exploit investors. In response, the White House has categorically denied these accusations, labeling them as baseless. Despite the attacks, the Trump media house has planned for a $3 billion investment in crypto, as highlighted in our last report.

In a landmark decision, the U.S. Securities and Exchange Commission (SEC) has recently clarified its position on digital assets, affirming that cryptocurrencies themselves are not classified as securities. On May 29, the SEC’s Division of Corporation Finance further clarified that specific staking activities on proof-of-stake networks also fall outside the scope of securities law.