A U.S. federal judge ruled that Caitlyn Jenner’s $JENNER token does not qualify as a security, dismissing key claims in a class action lawsuit filed by investor Lee Greenfield. The plaintiff alleged losses of more than $40,000 and argued the token sale involved unregistered securities offerings on blockchain networks.
U.S. District Judge Stanley Blumenfeld Jr. evaluated the case under the Howey Test —the standard used by the U.S. Securities and Exchange Commission (SEC) to determine what constitutes an investment contract. The judge concluded that Greenfield’s complaint failed to establish a common enterprise, a required element under the test. As a result, the court dismissed the federal securities claims against Jenner.
Court focuses on legal structure over hype
Greenfield accused Caitlyn Jenner of promoting the $JENNER token through her celebrity status, creating expectations for profits for retail buyers. The lawsuit referenced various social media campaigns, including AI-generated imagery tied to the token’s brand. The suit also named Jenner’s longtime manager, Sophia Hutchins, who tragically passed away in July 2025.
However, the court prioritized the token’s underlying structure over its promotional fanfare.Judge Blumenfeld said the complaint failed to show that investors agreed to share profits. “Taken together, the allegations in the SAC do not plausibly allege that the investors agreed to split profits,” he stated.
The judge also found no evidence of pooled investment. “Greenfield therefore has not plausibly alleged a common enterprise based on horizontal commonality,” he said. Without that element, the court did not consider whether investors expected profits from Jenner’s efforts.
Broader implications for the memecoin market
The ruling aligns with emerging legal perspectives and recent SEC guidance on memecoins. Regulators and courts are increasingly acknowledging that memecoins often trade purely on speculation, virality, and community interest rather than structured, profit-sharing investment models. Consequently, many may fall outside traditional securities classifications.
The dismissal also underscores the difficulty of applying existing, older legal frameworks to digital assets. Because memecoins like $JENNER typically lack formal governance structures, dividend mechanisms, or direct revenue-sharing agreements, courts are leaning toward evaluating the fundamental token design rather than the celebrities hyping them.
However, the decision does not remove all legal exposure. The court noted that non-federal claims may proceed in state courts under separate legal standards, meaning Jenner’s legal battle is not entirely over.
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