California Bans Public Officials from Issuing Meme Coins
California lawmakers have passed a bill aimed at preventing public officials from issuing meme coins. Assembly Bill 2409, which now awaits Governor Gavin Newsom's signature or veto, would bar any public officer or employee from issuing such tokens.
The measure, driven by costly failures like the TRUMP memecoin, would also restrict digital asset service providers from listing these tokens for California residents. The bill is set to take effect on January 1, 2027.
According to the bill's authors, the goal is to keep public trust and office separate from speculative token launches. This effort aligns with federal debates over crypto market-structure rules.
The state attorney general and local prosecutors would be authorized to enforce the ban through civil actions seeking injunctive relief and disgorgement.