The U.S. Securities and Exchange Commission declared that most meme coins, such as Dogecoin (DOGE-USD) and Shiba Inu (SHIB-USD), are more like collectibles than securities, sparing them from federal regulation but leaving buyers without traditional investor protections,

So-called meme coins, including those launched by the president and first lady, fail the SEC's Howey Test, the agency said.

According to the SEC, the coins are more akin to "collectibles" and don't fall under the category of securities under federal law.