California advances bill to ban public officials' memecoin listings

California lawmakers advanced Assembly Bill 2409 to prohibit digital asset service providers from offering certain public officials' memecoins to California residents. The bill would cover memecoins issued on or after Jan. 1, 2027. It would apply to tokens offered by or in partnership with federal public officials or state and local public officers. The bill defines memecoins as digital assets whose value comes primarily from public interest, speculation or community engagement. The California Senate passed the bill 40-0 on Wednesday, according to Legiscan data. The Assembly voted 78-0 to concur with the Senate's amendments. The bill entered the enrolled stage and awaits the governor's signature. The bill cites conflicts of interest and potential pay-to-play arrangements. Investors in the president-linked Official Trump token are estimated to be $3.2 billion underwater, according to Public Citizen. Most of those losses are unrealized. The TRUMP token has a $688 million market capitalization and ranks as the fifth-largest memecoin. CoinMarketCap data showed the token rose 53% during the past week. The token declined 67% over the past year. The Trump family's crypto ventures have created obstacles for the Digital Asset Market Clarity Act. A bipartisan ethics addendum has not been made public. The addendum would reportedly allow Trump to defer capital gains taxes on required divestitures. The provision could result in tax savings of millions of dollars.