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California Senate advances bill to bar public-official memecoin listings
The measure would block memecoins tied to federal public officials from being offered to California residents starting Jan. 1, 2027.
California lawmakers advanced a bill aimed at curbing conflicts of interest tied to memecoins issued by public officials. Cointelegraph reports the California Senate passed Assembly Bill 2409 in a 40-0 vote, and the state Assembly later concurred with the Senate amendments by a 78-0 vote.
The bill moves into the enrolled stage and is awaiting the governor’s signature. It would prohibit digital asset service providers from offering California residents memecoins issued on or after Jan. 1, 2027, when those tokens are offered by or in partnership with federal public officials or state or local public officers.
The legislation defines memecoins as digital assets whose value is derived primarily from public interest, speculation, or community engagement. It also targets alleged “pay-to-play” dynamics, according to the reporting.
Cointelegraph adds that investors in the US president-linked Official Trump (TRUMP) memecoin are estimated to be $3.2 billion underwater, with most losses described as unrealized by Public Citizen. The article also notes the TRUMP token ranks as the fifth-largest memecoin by market capitalization at $688 million, having risen 53% over the past week, while also mentioning reported obstacles tied to broader US crypto market structure efforts.