California Governor Newsom Signs Law Banning Public Officials from Issuing Meme Coins

California Governor Gavin Newsom signed AB 2409 (Assembly Bill 2409) on Sunday, September 27, 2026, prohibiting public officials and employees in the state from issuing meme coins.

BREAKING: @CAGovernor Gavin Newsom just signed new legislation to prevent public officials from issuing meme coins, protect consumers, hold bad actors accountable, and recover money for victims.

This comes while the Trump admin displays an unprecedented amount of corruption and self-dealing --- including through Donald Trump's very own meme coin which has lost Americans billions.

--- Governor Newsom Press Office (@GovPressOffice) September 27, 2026

Governor Newsom's signing of the new law aims to prevent public officials from issuing meme coins, protect consumers, hold bad actors accountable, and recover funds for victims. The law not only prohibits issuance by public officials themselves but also restricts digital asset service providers from offering certain meme coins issued after January 1, 2027, to California residents.

Ban on Issuance by Public Officials and Regulation of Related Tokens

AB 2409 prohibits public officials and employees in California from issuing meme coins. This includes elected officials at the state and local levels, appointed officials, legislators, and appointees to government boards and committees.

Meme coins are defined as digital assets sold based on their association with internet memes, characters, current events, trends, etc., with their value primarily arising from public interest, speculation, and community participation.

Furthermore, the law prohibits digital asset service providers from offering certain meme coins issued after January 1, 2027, that are provided by or in partnership with federal, state, or local public officials. Meme coins that use the likeness or image of public officials are also subject to regulation.

However, the law does not prohibit the purchase, sale, or holding of meme coins already in circulation. It is not a law banning meme coins outright but rather a regulation targeting issuance and provision linked to public officials.

Responses to violations will be handled through civil procedures rather than criminal penalties. The state Attorney General, district attorneys, city attorneys, and county legal authorities can file civil lawsuits to seek injunctions against violations and the return of improperly obtained funds.

Governor Newsom Addresses Profit-Making through Public Office

Governor Newsom emphasized that "no public official should profit from their position" and expressed a commitment to strengthening protective measures to prevent similar situations in the state.

AB 2409 is part of a series of bills signed on the same day aimed at preventing misconduct by public officials, protecting consumers, and addressing financial crimes.

On the same day, Governor Newsom also signed SB 1208 (Senate Bill 1208), which adds transactions involving digital assets to the state's money laundering-related laws.

SB 1208 allows law enforcement to obtain warrants to seize digital assets, wallets, and accounts if there is reasonable cause to believe that the assets are criminal proceeds or used to facilitate specific crimes. Additionally, procedures for freezing and confiscating digital assets related to crimes and returning assets to victims will be established. The expanded provisions regarding digital assets will be temporary until January 1, 2032.

Prior to this, California had already implemented measures requiring public officials to disclose digital financial assets, such as cryptocurrencies, that could lead to disqualification, and initiatives to prohibit profit-making through the use of non-public information in prediction markets. AB 2409 joins this trend of strengthening regulations surrounding public officials.

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