Regulations

Story: Judge Tosses Security Claims Against Jenner Memecoin in Class Action Blow

By Julie Binoche

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What the Court Actually Said. The lawsuit claimed JENNER should be classified as a security because investors bought it…

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What Happens Next. The class action isn't necessarily dead. Plaintiffs could appeal.

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Broader Market Impact. The ruling could embolden other public figures to launch their own tokens without worrying as much…

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A federal judge just killed the main argument in a class action lawsuit targeting Caitlyn Jenner's JENNER memecoin. The coin isn't a security, the court said.

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Plaintiffs wanted the memecoin treated like stock or bonds, which would've opened the door to SEC scrutiny and potential damages. But the judge disagreed.

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The lawsuit claimed JENNER should be classified as a security because investors bought it expecting profits from Jenner's promotional efforts.

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Memecoins are kind of a legal gray zone. They're usually joke tokens with no real utility beyond internet culture and speculation. Dogecoin started the trend years ago.

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The class action isn't necessarily dead. Plaintiffs could appeal. They could also pursue other claims that don't depend on the security classification.

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Neither Jenner nor her legal team has commented publicly since the ruling came down. That's pretty standard.

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The silence leaves a lot of questions hanging. Will other celebrity memecoin cases follow the same logic? Probably some will, some won't.

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See also: SEC Hits Crypto Executive With $16M Fraud Charges Over Fake Insurance Claims

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Jenner launched the memecoin last year amid a wave of celebrity crypto projects. Some did well for a while, others crashed fast.

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Crypto industry observers have been waiting for clarity on memecoin classification for a while now. The SEC hasn't issued formal guidance.

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The JENNER case won't settle everything, but it adds another data point. Courts are willing to say that at least some memecoins fall outside securities law.

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Read also: Circle Hit With Class Action Over $280 Million USDC Theft Response

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