Judge Rules Jenner’s Memecoin Not a Security; Lawsuit Dismissed

A California federal judge has dismissed a class-action lawsuit against Caitlyn Jenner concerning her JENNER memecoin, determining that the token does not qualify as a security under U.S. law. The judge found that plaintiffs failed to demonstrate the token was an investment contract because investor funds weren’t pooled for development or linked to a related product. Jenner’s defense argued the token was intended solely for entertainment, with value driven by her promotion.

The lawsuit, initially filed in November 2024, alleged an unregistered securities offering and investor losses following the token’s price decline. Plaintiffs claimed Jenner promised activities and fees would generate returns, but the judge found insufficient evidence of a clear path to financial returns for investors, particularly regarding promised donations to Donald Trump’s campaign and fractional ownership of Jenner’s Olympic gold medal.

The court allowed the possibility of pursuing related claims under California state law, but the federal securities claims are now resolved. The ruling emphasizes that promotion alone isn’t enough to establish a security; a clear structure for pooling funds and generating investor returns is crucial. This case highlights the ongoing challenge of regulating memecoins and the need for transparent token mechanics and verifiable fundraising structures.

(Source：Crypto Breaking News)