California Bans Public Officials From Issuing Meme Coins Under New Newsom Law

In brief

• California public officials and employees will be prohibited from issuing meme coins under AB 2409.
• Digital asset platforms will also be barred from listing certain meme coins tied to federal, state or local officials.
• The law comes as lawmakers in Washington debate similar restrictions on politicians' crypto ventures.

California Governor Gavin Newsom has signed a bill barring public officials in the state from issuing meme coins, adding new restrictions on political figures' involvement in the crypto market.

Assembly Bill 2409, authored by Assemblymember Avelino Valencia (D-Anaheim), prohibits California public officers and employees from issuing meme coins. It also bars digital asset service providers from listing certain meme coins issued after January 1, 2027, if they are offered by or in partnership with a federal, state or local public official.

The law gives California's attorney general, district attorneys, city attorneys and county counsels the ability to bring civil actions to enforce the restrictions, including seeking injunctions and disgorgement of funds.

The legislation comes amid growing scrutiny of politicians launching or profiting from crypto tokens, particularly as U.S. President Donald Trump and his family have built a substantial business presence in digital assets.