California Unanimously Passes Bill Banning Public Officials' Memecoins

California lawmakers have unanimously passed Assembly Bill 2409, which bans digital asset service providers from listing memecoins issued by federal public officials to California residents. The bill targets potential conflicts of interest and pay-to-play arrangements involving public officers.

The legislation comes as the Official Trump memecoin, ticker TRUMP, continues to struggle with investors facing unrealized losses of around $3.2 billion, a 67% decline over the past year. Despite a recent 53% bounce, the token's market cap sits at $688 million.

California's move is partly in response to the federal vacuum on regulating public officials and crypto, with lawmakers arguing that states will start drawing their own lines if Washington can't or won't do so.