The rise of memecoins, facilitated by platforms like Pump.Fun, has created a legal gray area where developers may exploit regulatory gaps, leading to unethical practices without clear legal repercussions. As California prepares to implement new regulations in 2026, the current unregulated market allows minors access to high-risk trading, raising concerns about investor protection and the prevalence of scams. Despite efforts to standardize trading and reduce risks, the overwhelming majority of new tokens are deemed scams, highlighting the immature state of the memecoin market.
