California Law Bars Public Officials From Issuing Memecoins

California Governor Gavin Newsom has signed Assembly Bill 2409 into law, barring covered state and local public officials from issuing memecoins. Signed on September 27, 2026, the legislation also introduces restrictions for digital asset service providers involving certain memecoins linked to public officials. The measure forms part of a wider package of laws addressing public accountability, consumer protection and cryptocurrency-related activity.

Under the new law, covered public officers and certain government employees involved in decisions concerning bids or contracts cannot issue a memecoin. The legislation defines issuance broadly, including making a coin available for purchase, donation or exchange of value. The restrictions cover elected and appointed officials at the state and local levels, legislators and members of government boards, while the employee provision applies to a narrower group of government workers.

The law also places requirements on digital asset service providers serving California consumers. From January 1, 2027, covered providers will face restrictions on listing certain memecoins that have been issued by or in collaboration with federal or California public officials. California authorities including district attorneys, city attorneys and county counsel can seek court orders and the recovery of funds when enforcing the prohibition.

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AB 2409 was introduced by Assemblymember Avelino Valencia and passed both chambers of the California Legislature without a recorded dissent in the votes cited by the governor's office. The legislation is part of a broader set of measures signed by Newsom on September 27 covering areas including cryptocurrency enforcement, consumer protection and public ethics.

Newsom linked the legislation to concerns over public officials using digital assets for personal financial gain and also criticised President Donald Trump's involvement with the Official Trump memecoin. The governor's office cited reporting that nearly one million people who bought the token had collectively lost more than $3 billion, while Trump had received profits from the venture. Those figures were presented by the governor's office in announcing the legislation and are not an independent finding by the California law itself.

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