California has become the first US state to make it illegal for its own politicians to do what Donald Trump did with the $TRUMP token. Governor Gavin Newsom signed Assembly Bill 2409 on September 27, and his office did not hide who the law is aimed at.
What Does AB 2409 Actually Ban?
The law, authored by Assemblymember Avelino Valencia, prohibits California public officers and public employees from issuing meme coins. It defines a meme coin as a digital asset marketed on the basis of its association with an internet meme, a character, a current event or a trend, and whose value comes mainly from public interest, speculation or community engagement rather than from a working product.
The ban covers state and local elected or appointed officers as well as public employees with decision-making power over bids and contracts. Enforcement is civil, not criminal.
Importantly, this is not a blanket meme coin ban. Retail traders in California can keep buying Dogecoin, Pepe or whatever launches on pump.fun next week. The restriction is on people in public office issuing tokens off the back of their position.
What Changes for Crypto Exchanges?
The second part of the law targets platforms. From Janua...
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