California Governor Signs Law Barring Officials From Issuing Memecoins
Assembly Bill 2409 also restricts listings of certain official-linked tokens for California residents beginning Jan. 1, 2027.
California Gov. Gavin Newsom signed a law Sept. 27 barring public officials from issuing memecoins, creating a new state-level restriction on politically affiliated crypto tokens.
Assembly Bill 2409 prohibits public officers and certain public employees from issuing a memecoin. The covered group includes elected and appointed officials, members of government boards and committees, and employees with decision-making authority over government bids and contracts.
The law also restricts digital-asset service providers from listing a memecoin for sale to a California resident if it was issued on or after Jan. 1, 2027, and offered by or partnered with a federal, state or local public official.
California's attorney general, district attorneys, city attorneys and county counsel may bring civil actions to enforce the restrictions. Courts can order injunctions and, in some cases, disgorgement.
Newsom signed the measure as part of an 11-bill package addressing corruption, consumer protection, privacy and digital-asset crime. His office titled the announcement “The Opposite of Trump,” framing the law as a response to President Donald Trump's memecoin venture.
The statute defines a memecoin as a digital asset tied to memes, public figures, celebrities, current events or social trends, with value driven mainly by public interest, speculation or community engagement.
