California Senate Passes Bill Banning Public Officials from Issuing Meme Coins

Huo Xing Finance reports that the California State Senate passed Assembly Bill 2409 (AB 2409) by a vote of 40 to 0, followed by the California State Assembly’s approval of the Senate amendments with a vote of 78 to 0. The bill is now pending signature, awaiting the governor’s decision. The bill will prohibit digital asset service providers from offering meme coins issued or co-issued by federal, state, or local public officials after January 1, 2027, to California residents. The bill defines meme coins as digital assets whose value primarily derives from public interest, speculation, or community engagement. Meanwhile, according to the consumer advocacy group Public Citizen, investors in the TRUMP meme coin associated with former U.S. President Trump have incurred cumulative unrealized losses of approximately $3.2 billion. The Trump family’s cryptocurrency activities are also seen as an obstacle to the advancement of the U.S. CLARITY Act on Digital Asset Market Clarity.