California Senate passes bill to ban memecoin issuance by public officials

The bill seeks to prohibit the listing of memecoins issued by federal public officials to California residents, citing conflicts of interest and “pay-to-play arrangements.”California lawmakers passed a bill restricting public officials’ involvement with memecoins, citing concerns around conflicts of interest and “pay-to-play arrangements.”The California Senate passed Assembly Bill 2409 in a 40-0 vote on Wednesday, according to Legiscan data. The Assembly subsequently voted 78-0 to concur in the Senate’s amendments. The bill entered the enrolled stage and awaits the governor’s signature.The bill would prohibit digital asset service providers from offering California residents memecoins issued on or after Jan. 1, 2027, that are offered by or in partnership with federal public officials or state or local public officers. The bill defines memecoins as digital assets whose value is derived primarily from public interest, speculation or community engagement.Investors in the US president-linked Official Trump (TRUMP) memecoin are an estimated $3.2 billion underwater, with most of those losses unrealized, according to a Thursday report from nonprofit consumer advocacy organization Public C...