California Bans Official Memecoins as Solana ETFs Post Record $188M Inflows

Two U.S. developments on September 28 show how differently the country is approaching crypto: state lawmakers are tightening rules around speculative tokens, while investors keep moving money into regulated crypto funds.

On Sunday, Governor Gavin Newsom signed AB 2409, a law that bars California public officials from issuing memecoins. The law defines these as tokens tied to a famous personality, an internet joke or a viral trend rather than a specific use case.

The measure was signed alongside ten other bills, making an 11-bill package on corruption, consumer protection and crypto-related crime. Other bills in the package set rules for repaying crypto scam victims and create a legal process for seizing crypto from transnational criminal networks.

Newsom's office presented the package as a direct response to the $TRUMP token. According to Nansen data, about 988,905 buyers lost a combined $3.81 billion on the token. A financial disclosure lists $636 million in royalties from the coin, and Trump Organization affiliates hold roughly 80% of the supply. The token currently trades near $2.03. President Trump's office had not responded to a request for comment at the time of reporting.

One important question remains open: it is unclear whether the ban applies to memecoins that already exist, including $TRUMP.

U.S. spot Solana exchange-traded funds attracted a record $188 million in net inflows during the five trading sessions through September 25, and every fund in the group recorded inflows.

Bitwise's BSOL led with about $128 million, or roughly 68% of the weekly total. Grayscale's GSOL added $28 million and Fidelity's FSOL $18 million. The remaining $14 million was split among funds from Morgan Stanley, VanEck, Franklin Templeton and 21Shares.

Friday alone brought in about $87 million, the largest single-day intake since the funds launched. BSOL now accounts for about $1.2 billion of the group's $1.6 billion in cumulative net inflows, or roughly 76%.

The broader market saw similar demand. U.S. bitcoin ETFs drew about $2.4 billion last week, and ether products added around $690 million. SOL traded near $119, still about 60% below its record high of roughly $293.

The inflows arrived as Solana developers advanced Alpenglow, an upgrade designed to shorten the time before a payment is considered irreversible from about 12.8 seconds to roughly 150 milliseconds. It reached the network's second public test environment on Friday. The speed is a target rather than a confirmed result, and no launch date for the live network has been announced.

The two stories point in the same direction: U.S. capital is flowing toward regulated, brokerage-friendly products, while lawmakers are paying closer attention to the most speculative corners of the market. For investors, the key items to watch are how California clarifies the scope of AB 2409, whether Solana ETF inflows stay strong, and how SOL's price responds.