California Governor Signs Law Barring Officials From Issuing Memecoins
The measure also limits crypto firms from offering certain politician-branded tokens to state residents, effective for coins issued from Jan. 1, 2027.
Illustration · generated, not a photograph
California Governor Gavin Newsom has signed into law a ban on state and local officials issuing memecoins, a direct rebuke of President Donald Trump's own token launch last year. The new rule, Assembly Bill 2409, was signed Sunday and takes effect for tokens issued on or after Jan. 1, 2027.
The bill, introduced Feb. 20, 2026, by Assembly Member Avelino Valencia, adds a prohibition on memecoin issuance to California's Government Code, which already bars state officers and employees from engaging in outside work that conflicts with their official duties. The new law also empowers the state attorney general, district attorneys, city attorneys and county counsels to bring civil actions to enforce the restriction.
Beyond banning public officials from issuing tokens themselves, the legislation places limits on digital asset service providers. It prohibits those companies from offering to California residents certain memecoins issued by—or created in partnership with—federal, state or local public officials.
Newsom framed the measure as a safeguard against officials profiting from their positions. "No official should profit off their office—and we're putting stronger protections in place to ensure it doesn't happen in our state," he said Sunday, while criticizing Trump's 2025 memecoin venture.
In a separate move the same day, Newsom also signed Senate Bill 1208, which updates California's money laundering laws to explicitly cover transactions involving digital assets. That measure broadly allows law enforcement to freeze, seize and forfeit digital assets tied to criminal activity.
The memecoin ban follows a wave of politician-themed tokens that surged in popularity during the last election cycle, raising ethical and legal questions about elected officials capitalizing on their public profiles. California's move marks one of the first state-level attempts to address the practice directly.
The new law applies to tokens issued from the start of 2027, giving officials and companies time to adjust. It does not, however, address tokens already in circulation or those issued by private individuals unaffiliated with public office.
The signing comes as several states weigh similar restrictions, but California's legislation is among the most comprehensive, covering both issuers and the platforms that distribute such tokens.
The full text of AB 2409 has not yet been published on the state legislature's website, but summary documents describe its enforcement provisions and the explicit addition to the Government Code.
Source reporting
The outlets whose reporting this account was written from.
Written from the reporting and primary documents credited at the foot of this story. Facts are credited to the outlet or document that established them. How Chainpress works
