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Ruling for the United States District Court, Central District of California, Judge Stanley Blumenfeld Jr. has dismissed a pending class action lawsuit against Caitlyn Jenner over the Olympian's self-promoted memecoin.
What's the Scoop?
- Not a Security: A federal judge has declined to certify the class action lawsuit sought in the case of Naeem Azad v. Caitlyn Jenner, ruling that the JENNER memecoin does not constitute a security under federal law. The court found no evidence of a "common enterprise," as investor funds were not pooled or used to build a product, key requirements under the Howey Test. Although Jenner engaged in vague marketing efforts, promising to use her token's 3% trade tax to institute a buyback program, investor success was speculative and not directly tied to Jenner's efforts.
- Prior Guidance: Following the launch and subsequent collapse of JENNER, in February 2025, the Securities and Exchange Commission (SEC's) Division of Corporate Finance issued a staff statement, clarifying that federal securities laws do not typically apply to memecoins – describing them as speculative, entertainment-driven assets akin to collectibles, with no pooled investment structure or expectation of profits derived from the efforts of others.
A federal judge just ruled Caitlyn Jenner's $JENNER memecoin is NOT a security.
— Ariel Givner (@GivnerAriel) April 20, 2026
At its core is the 1946 Howey Test, which decides if something is a regulated investment (like stocks).
For it to qualify, investors need a "common enterprise,” but here, there was none.
No pooling… pic.twitter.com/ZlOWn7xQQS
