California Bars Public Officials From Issuing Meme Coins

California has barred public officials and government employees from issuing meme coins and prohibited digital asset platforms from listing certain tokens associated with public officials. The new measures extend the state’s broad effort to regulate cryptocurrency while Congress continues to debate a federal framework.

Gov. Gavin Newsom signed Assembly Bill 2409, authored by Assemblymember Avelino Valencia, D-Anaheim, as part of a package of crypto-related measures addressing conflicts of interest, fraud and financial crime. The legislation prohibits California public officers and employees from issuing meme coins and imposes restrictions on platforms serving California customers.

Beginning Jan. 1, 2027, digital asset service providers will be prohibited from listing certain newly issued meme coins when they are offered by, or in partnership with, a federal, state or local public official. The law does not prohibit meme coins altogether. Instead, it targets the intersection of public office and speculative digital assets while placing compliance obligations on exchanges and other platforms serving Californians, according to Decrypt.

AB 2409 defines a meme coin as a digital asset marketed based on its association with internet memes, characters, current events or trends and whose value is primarily derived from public interest, speculation or community engagement.