A U.S. federal judge has ruled that the $JENNER memecoin, launched by media personality and former Olympic athlete Caitlyn Jenner, does not qualify as a security under federal law.
The decision came from Stanley Blumenfeld Jr., who relied on the Howey Test, a legal standard established in the SEC v. W.J. Howey Co.. The ruling focused on whether investors participated in a “common enterprise,” a key requirement for classifying an asset as a security.
Investor Loss Claims and Token Promotion Allegations
The lawsuit was filed by Lee Greenfield, who alleged losses exceeding $40,000 after purchasing the $JENNER token on both the Ethereum and Solana networks in May 2024.
Greenfield claimed that Jenner promoted the token heavily on social media, suggesting her involvement could increase its value. The complaint referenced posts that included promotional imagery and messaging implying potential profits for investors.
The original case, filed in late 2024, also named Jenner’s manager, Sophia Hutchins, who died in July 2025. Defendants argued that the Ethereum based token did not meet the definition of a statutory security sale.
Judge Finds No Evidence of Common Enterprise
In his ruling, Judge Blumenfeld stated that although investors clearly used money to purchase tokens, the complaint failed to demonstrate the existence of a shared financial structure among participants. The court found no indication that investors pooled resources, shared profits or losses, or created capital beyond purchasing the token itself.
Because the judge determined that neither horizontal nor vertical commonality existed, the case did not satisfy the “common enterprise” requirement of the Howey Test. As a result, the court concluded that the token sale could not be classified as an investment contract under federal securities law.
While federal securities claims were dismissed, the judge noted that other non-federal allegations may still proceed in state court. The ruling marks a notable legal development in ongoing debates over how memecoins and celebrity-backed digital assets are regulated under U.S. securities law.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.