The US is expected to pass the highly anticipates Clarity Act in May of this year. The legislation is anticipated to bring much-needed clarity for the crypto landscape. It will clarify which assets fall under which regulator’s jurisdiction, the SEC or the CFTC. Shiba Inu (SHIB), and other memecoins, are also expected to see some clarity in their classification. Let’s discuss what regulatory oversight Shiba Inu (SHIB) will face under the Clarity Act.
What’s In Store For Shiba Inu Under The Clarity Act?
In a February 2025, the SEC released a statement regarding memecoins such as Shiba Inu (SHIB). According to the statement, the SEC defined memecoins as “a type of crypto asset inspired by internet memes, characters, current events, or trends.” However, the SEC notes that memecoins typically have “limited or no use or functionality.” The agency also notes the high price volatility of memecoins, something which Shiba Inu (SHIB) is not stranger to.
According to the SEC announcement, memecoins do not fall under securities laws. This makes Shiba Inu (SHIB) and other memecoins non-securities. The SEC states, “transactions in the types of meme coins described in this statement, do not involve the offer and sale of securities under the federal securities laws.“
The financial regulator further says that buying memecoins does not come with “a reasonable expectation of profits.” The SEC says that a memecoin’s value comes from online speculation, which makes the token more of a collectible. Hence, buying Shiba Inu (SHIB), according to the SEC, does not necessarily mean that you are out to make a profit, but are participating in an online sub-culture.
Also Read: Trading Volume For Shiba Inu Rises 22.50%: SHIB Back in the Game?
It is possible that the upcoming Clarity Act will encompass the same definition for memecoins. Although memecoins have delivered some incredible returns for many investors, they carry significant risks, that new investors should be aware of.
