California Bans Memecoins Issued by Public Officials

California Governor Gavin Newsom has signed legislation barring state and local public officers, along with certain employees, from issuing memecoins. The law also restricts crypto platforms from listing some tokens tied to public officials for California residents.

Memecoins are cryptocurrencies inspired by internet jokes, celebrities, or trends, whose value is usually driven by hype.

Assembly Bill 2409, signed on September 27, covers elected and appointed state and local officers. Its employee provision applies to those with decision-making authority over government bids and contracts. Digital asset service providers also cannot list a memecoin issued on or after January 1, 2027, for sale to California residents, if it is offered by or in partnership with a federal, state, or local public official.

California’s attorney general can bring a civil action to enforce either prohibition and seek an injunction or the return of proceeds. District, city, and county attorneys can bring actions against officers or employees who issue memecoins.

California Governor Newsom presented the measure as a response to conflicts of interest, citing President Donald Trump’s controversial 2025 memecoin launch, saying: “No official should profit off their office.”

Newsom also signed Senate Bill 1208, which extends California’s money laundering law to qualifying digital asset transactions. Aimed in part at fraud by transnational criminal networks, it creates a warrant-based process for seizing crypto linked to crime and a court process for forfeiture and returning assets to victims.