California lawmakers have passed AB 2409, which bars public officials and employees from issuing meme coins and restricts digital asset service providers from listing official-linked meme coins for California residents beginning January 1, 2027. The measure unanimously cleared the Senate 40-0 and the Assembly 78-0 on August 26 and now awaits Governor Gavin Newsom's signature or veto. The state attorney general, district attorneys, city attorneys, and county counsel can enforce the ban through civil actions seeking injunctive relief and disgorgement. The legislation follows high-profile political memecoin launches, including Public Citizen's estimate of about $3.2 billion in paper losses on the Official Trump memecoin and reports of nearly $4 billion extracted by insiders. It advances alongside federal debates on the CLARITY Act, where the House passed the measure 294-134 in July 2025 and the Senate Banking Committee advanced its version 15-9 in May 2026 amid delays over ethics rules tied to President Trump's family crypto ventures. The White House accepted proposed ethics restrictions stopping covered officials and their spouses from issuing or sponsoring digital assets on July 22, though Democrats argue the proposal does not go far enough as it excludes adult children involved in World Liberty Financial.