Securities lawsuits targeting memecoins are testing how digital asset losses should be litigated as President Donald Trump‘s administration signals a softer approach to crypto. This article discusses the recent legal actions taken by the U.S. Securities and Exchange Commission (SEC) under the Trump administration against various memecoins (a type of cryptocurrency that often start as internet jokes but can gain significant value and popularity). The SEC's enforcement actions signal a potential shift in its approach to regulating the rapidly evolving cryptocurrency market.

Howard notes that "memecoins really don’t fit within the statutory definition of a security because there is no expectation of profit or that other people are going to be doing some kind of work or project to make the token more valuable. Under a traditional analysis, most crypto would be considered a security."