California lawmakers unanimously passed a bill restricting public officials’ involvement with memecoins, citing concerns over conflicts of interest and potential “pay-to-play” arrangements.
The California Senate approved Assembly Bill 2409 by a 40-0 vote, while the Assembly later concurred with the amendments by 78-0. The bill now awaits the governor’s signature.
Starting Jan. 1, 2027, the legislation would prohibit digital asset service providers from offering California residents memecoins issued by, or in partnership with, federal, state or local public officials.
The move comes amid growing scrutiny of politically linked crypto tokens. According to Public Citizen, investors in the Trump-linked Official Trump (TRUMP) memecoin are estimated to be about $3.2 billion underwater, mostly in unrealized losses.
TRUMP currently has a market capitalization of roughly $688 million and ranks as the fifth-largest memecoin. Despite gaining 53% over the past week, the token remains down about 67% over the past year.
Trump family crypto ventures have also complicated negotiations around the CLARITY Act, with lawmakers debating ethics provisions covering public officials’ financial interests in digital assets. $TRUMP
The California Senate approved Assembly Bill 2409 by a 40-0 vote, while the Assembly later concurred with the amendments by 78-0. The bill now awaits the governor’s signature.
Starting Jan. 1, 2027, the legislation would prohibit digital asset service providers from offering California residents memecoins issued by, or in partnership with, federal, state or local public officials.
The move comes amid growing scrutiny of politically linked crypto tokens. According to Public Citizen, investors in the Trump-linked Official Trump (TRUMP) memecoin are estimated to be about $3.2 billion underwater, mostly in unrealized losses.
TRUMP currently has a market capitalization of roughly $688 million and ranks as the fifth-largest memecoin. Despite gaining 53% over the past week, the token remains down about 67% over the past year.
Trump family crypto ventures have also complicated negotiations around the CLARITY Act, with lawmakers debating ethics provisions covering public officials’ financial interests in digital assets. $TRUMP