Crypto Today: California Memecoin Bill, Trump-Linked Crypto Bank, Zcash
Today in crypto, California lawmakers passed a bill restricting federal officials’ involvement in memecoin issuance. Sheikh Tahnoon’s group reportedly backed a 49% stake in the holding company behind World Liberty’s conditionally approved US trust bank and Grayscale argued that Zcash could challenge Bitcoin’s network effects as financial privacy gains importance.
California Senate passes bill to ban memecoin issuance by public officials
California lawmakers passed a bill restricting public officials’ involvement with memecoins, citing concerns around conflicts of interest and “pay-to-play arrangements.”
The California Senate passed Assembly Bill 2409 in a 40-0 vote on Wednesday, according to Legiscan data. The Assembly subsequently voted 78-0 to concur in the Senate’s amendments. The bill entered the enrolled stage and awaits the governor’s signature.
The bill would prohibit digital asset service providers from offering California residents memecoins issued on or after Jan. 1, 2027, that are offered by or in partnership with federal public officials or state or local public officers. The bill defines memecoins as digital assets whose value is derived primarily from public interest, speculation or community engagement.
Investors in the US president-linked Official Trump (TRUMP) memecoin are an estimated $3.2 billion underwater, with most of those losses unrealized, according to a Thursday report from nonprofit consumer advocacy organization Public Citizen.
The TRUMP token ranks as the fifth-largest memecoin with a $688 million market capitalization. The token rose 53% during the past week, recouping some of the losses from its 67% decline over the past year, according to CoinMarketCap.
Abu Dhabi royal backs 49% stake in Trump-linked crypto bank venture: WSJ
An Abu Dhabi royal and his co-investors reportedly back the largest stake in the holding company behind World Liberty Financial’s proposed US trust bank.
Citing people familiar with the matter, the Wall Street Journal reported that Sheikh Tahnoon bin Zayed Al Nahyan’s group is behind StringZ Holding RSC, which owns 49% of WLTC Holdings. An entity affiliated with US President Donald Trump’s family owns another 38%, one person told WSJ.
If it receives final approval, the planned bank would bring the issuance, redemption and custody of World Liberty’s USD1 stablecoin under the federally supervised venture.
Tahnoon is the UAE’s national security adviser and chairman of artificial intelligence company G42. The US authorized exports of advanced AI chips to G42 in November 2025, months after Washington and Abu Dhabi agreed a broader AI cooperation framework.
The Office of the Comptroller of the Currency granted World Liberty Trust Company preliminary conditional approval on Aug. 14. Its published decision confirms that StringZ is an investor in WLTC Holdings and signed commitments not to influence the bank. It does not identify Tahnoon as its backer or disclose its stake.
The trust bank cannot begin operating until it satisfies the OCC’s pre-opening requirements and receives final approval.
Tahnoon previously backed a $500 million purchase of 49% of World Liberty Financial. Democratic senators later called for hearings into the transaction and whether it influenced US policy toward the UAE.
Cointelegraph contacted the Trump Organization for comment but did not receive a response before publication.
Grayscale sees privacy as Zcash’s opening against Bitcoin
Grayscale says Zcash (ZEC) could mount a rare challenge to Bitcoin’s (BTC) powerful network effects as artificial intelligence increases the value of keeping financial transactions private.
The asset manager’s head of research, Zach Pandl, argues that Zcash benefits from being a later entrant, allowing it to combine Bitcoin-like monetary characteristics with optional transaction privacy. That distinction could become more important as AI makes large-scale analysis of financial activity increasingly sophisticated.
The call follows a sharp rise in ZEC, which has gained roughly 19-fold over the past year. Even after that rally, Zcash’s market capitalization remains below 1% of Bitcoin’s, leaving substantial room for appreciation if it succeeds in taking even a modest share of the market, according to Grayscale.
Bitcoin still has formidable advantages, including deeper liquidity and an established network that competing cryptocurrencies such as Litecoin have struggled to dislodge. Grayscale also cautioned that Zcash remains a high-risk asset and that further gains are unlikely to be smooth.
Institutional activity around Zcash is also increasing. Nasdaq-listed Cypherpunk Technologies recently acquired a $33.33 million mining fleet from Winklevoss Capital that now accounts for about 18% of the network’s hashrate.
