Meme coins are not securities and, hence, aren't subject to federal laws regulating the financial instruments, according to the Securities and Exchange Commission. The agency has issued its official stance on meme coins, comparing them to collectibles, since their value is "derived from speculative trading and the collective sentiment of the market." Meme coins do not fit the definition of securities under the law, SEC said, because they do "not generate a yield or convey rights to future income, profits, or assets of a business." People who purchase them are also not considered to be investing in an enterprise, which means they're not "investment contracts" that are classified as securities.