Judicial Ruling Favors Reality TV Star's Digital Currency Venture, Rejects Regulatory Challenge

Table of Contents A federal court has delivered a legal victory to Caitlyn Jenner by dismissing a class-action lawsuit alleging her JENNER memecoin constituted an unregistered security. A federal judge ruled Caitlyn Jenner’s $JENNER memecoin is not a security, dismissing a class action lawsuit from a buyer who lost $40K. The court found the token failed the Howey Test’s “common enterprise” requirement. pic.twitter.com/UGQUs2YYzo — Token Metrics (@tokenmetricsinc) April 17, 2026 The decision came Thursday from California federal judge Stanley Blumenfeld Jr., who determined the plaintiffs failed to demonstrate that the JENNER token satisfied the legal criteria for a security. At the heart of the case was the Howey Test, a legal framework established by a 1946 Supreme Court decision. This test requires an investment contract to include capital invested in a collective venture with profit expectations derived from the efforts of others. Judge Blumenfeld concluded that the token failed to satisfy two of the three Howey Test components. Specifically, he found insufficient evidence establishing a “common enterprise” linking JENNER token purchasers. The primary plaintiff, Lee Greenfield from the United Kingdom, claimed losses surpassing $40,000 from purchasing the token across both Solana and Ethereum networks during May 2024. Greenfield’s legal team contended that Jenner exploited her fame to promote the token. The filing cited an X platform post featuring an AI-created image depicting Jenner wearing a “JENNER ETH” shirt, used to market the cryptocurrency to potential buyers. The initial legal action was brought in November 2024 against both Jenner and her manager Sophia Hutchins. Hutchins passed away in July 2025. The revised complaint claimed investors had collectively pooled their resources based on Jenner’s promise that a 3% transaction fee would finance token repurchases, promotional activities, political donations to Donald Trump’s campaign, and fractional ownership shares in her Olympic gold medal. Judge Blumenfeld dismissed the pooling theory presented by plaintiffs. His ruling stated the allegations failed to establish that investors had agreed to share profits and losses or combine resources beyond the simple act of purchasing the cryptocurrency. The Olympic medal ownership initiative was revealed in August 2024, occurring after Greenfield had already completed his token purchases, and ultimately never materialized. The court further determined that Jenner’s promotional efforts alone were insufficient to constitute a common enterprise under securities law. The JENNER token debuted on the Solana blockchain in May 2024 via the Pump.fun platform. Controversy erupted immediately when Jenner and other celebrity endorsers alleged they had been defrauded by a partner identified as Sahil Arora. Jenner subsequently relaunched the token on the Ethereum network. Investors asserted this migration negatively impacted the original Solana version’s market value. The cryptocurrency reached its peak market capitalization of approximately $7.5 million in June 2024. Since then, its value has collapsed, losing virtually all market worth. The court rejected the plaintiff’s motion to file a third amended version of their complaint. Claims based on California state law regarding contract violations and fraud were transferred to state court for potential further proceedings.