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The California Senate passed Assembly Bill 2409 by 40-0 on Wednesday, with the Assembly voting 78-0 to concur on amendments. It now sits at the enrolled stage awaiting the governor's signature.
The bill would bar digital asset service providers from offering California residents any memecoin issued on or after January 1, 2027 that is created by, or done in partnership with, a federal public official or a state/local officer. It defines a memecoin broadly as an asset whose value comes mainly from public interest, speculation, or community engagement. The stated rationale is heading off conflicts of interest and "pay-to-play arrangements."
The timing lines up with ongoing scrutiny of $TRUMP, the memecoin linked to the US president. Public Citizen, a consumer advocacy nonprofit, reported this week that holders are sitting on an estimated $3.2 billion in largely unrealized losses. Despite that, $TRUMP is still the fifth-largest memecoin by market cap at roughly $688 million, and it's up 53% over the past week even after a 67% decline over the past year.
The Trump family's crypto dealings have also become a sticking point in Washington, reportedly complicating passage of the federal CLARITY Act market structure bill over a non-public ethics provision said to let Trump defer capital gains taxes on required divestitures.
Since the California bill only restricts coins issued from 2027 onward, it wouldn't retroactively affect $TRUMP itself, and it only binds providers serving California residents. Whether other states follow, and whether this becomes a template for federal rules, is unclear.
Does this kind of state-level ban actually change anything for a token already trading nationally, or is it mostly symbolic?
Want to start trading? Sign up on fomo.family and save 10% on trading fees!
The bill would bar digital asset service providers from offering California residents any memecoin issued on or after January 1, 2027 that is created by, or done in partnership with, a federal public official or a state/local officer. It defines a memecoin broadly as an asset whose value comes mainly from public interest, speculation, or community engagement. The stated rationale is heading off conflicts of interest and "pay-to-play arrangements."
The timing lines up with ongoing scrutiny of $TRUMP, the memecoin linked to the US president. Public Citizen, a consumer advocacy nonprofit, reported this week that holders are sitting on an estimated $3.2 billion in largely unrealized losses. Despite that, $TRUMP is still the fifth-largest memecoin by market cap at roughly $688 million, and it's up 53% over the past week even after a 67% decline over the past year.
The Trump family's crypto dealings have also become a sticking point in Washington, reportedly complicating passage of the federal CLARITY Act market structure bill over a non-public ethics provision said to let Trump defer capital gains taxes on required divestitures.
Since the California bill only restricts coins issued from 2027 onward, it wouldn't retroactively affect $TRUMP itself, and it only binds providers serving California residents. Whether other states follow, and whether this becomes a template for federal rules, is unclear.
Does this kind of state-level ban actually change anything for a token already trading nationally, or is it mostly symbolic?
Want to start trading? Sign up on fomo.family and save 10% on trading fees!