- SEC drops case on Hailey Welch’s $HAWK coin after finding no financial violations.
- HAWK lost 95% post-launch, with Welch’s promotion linked to its sharp decline.
- Legal experts say the SEC’s move raises concerns over meme coin oversight gaps.
The U.S. Securities and Exchange Commission (SEC) has closed its investigation into Hailey Welch’s $HAWK meme coin, which lost 95% of its value shortly after launch. The regulator found no financial misconduct or violations, leading to the dismissal of all charges.
Market Impact Analysis
Watcher Guru reported this on X, sharing a chart next to an image of Hailey Welch, reinforcing the link between her meme coin and its collapse. The HAWK/SOL trading pair on a 1-day timeframe showed an early price surge before a steep decline. Red candlesticks signaled aggressive selling, triggering a sharp market loss.
At its peak, trading volume spiked before plummeting with the price. The data shows a $59.78M loss, marking a -22.84% decrease. Consecutive red candlesticks confirmed heavy liquidation, accelerating the downturn. The steep drop reflected rapid distribution, shifting market sentiment toward fear.
Volume bars showed strong initial liquidity inflows, followed by declining volume as selling pressure mounted. Weak buying support at lower price levels prevented recovery. The structure remained bearish, with no visible reversal signals.
Despite the SEC closing its investigation, market sentiment around HAWK remains fragile. The token’s collapse highlights meme coin volatility. Watcher Guru’s post emphasized Welch’s involvement in promoting the coin, fueling discussions about accountability in the crypto space.
Stock Market & Investor Sentiment
HAWK’s collapse shook retail investors, many of whom suffered losses. Expectations of SEC action created uncertainty. The regulator’s decision not to impose penalties led to mixed reactions—some saw it as confirmation of meme coin risks, while others argued that regulatory gaps leave investors exposed.
Despite the controversy, HAWK saw brief rebounds. After Welch’s announcement, the token gained 25%, according to GeckoTerminal data. Trading volume hit $333,000 in one day, signaling renewed speculative interest despite its uncertain trajectory.
Regulatory and Policy Implications
The SEC’s classification of meme coins as non-securities played a key role in Welch’s case. Since HAWK did not fall under securities laws, the agency lacked enforcement grounds. But the debate around meme coin regulation continues as ‘rug pull’ situations increase.
Legal analysts are split on the SEC action. Former SEC attorney Marc Fagel described that closing an investigation doesn’t equate to no wrongdoing, stating, “The SEC did not reach ‘no wrongdoing’ but reached it had an inadequate basis for action.” Legal analyst James Murphy said meme coins manage to remain beyond SEC regulation, but other regulators might still be able to pursue fraud.
The $HAWK case fanned the flames of increasing demands for stricter regulation of meme coins, particularly in investor protection and disclosure. As meme coins gain popularity, regulators and investors are presented with a continually changing and risky market.
