California Bans Public Officials From Issuing Meme Coins Under Newsom Law

California Governor Gavin Newsom has signed Assembly Bill 2409 into law, prohibiting public officials from issuing meme coins. This move aims to prevent politicians from profiting off their office by launching or promoting digital assets.

The bill defines a meme coin as a digital asset whose value is primarily derived from 'public interest, speculation or community engagement.' It specifically bars public officers and employees from issuing such tokens.

Additionally, the law restricts digital asset service providers from listing certain meme coins issued after January 1, 2027, if they are offered by or in partnership with a federal, state or local public official. This restriction does not amount to a blanket ban on meme coins in California but targets tokens connected to public officials.

The legislation comes as part of growing scrutiny of politicians launching or profiting from crypto tokens. U.S. President Donald Trump and his family have built a substantial business presence in digital assets, including the Solana-based TRUMP meme coin, which disclosed more than $635 million in earnings for the previous year.