California Bans Public Officials From Issuing Memecoins

California Governor Gavin Newsom has signed into law Assembly Bill 2409, which prohibits public officials from issuing memecoins. The new legislation defines a memecoin as a digital asset tied to memes, public figures, celebrities, current events or social trends, with value driven mainly by public interest, speculation or community engagement.

The bill restricts public officers and certain public employees from issuing memecoins, including elected and appointed officials, members of government boards and committees, and employees with decision-making authority over government bids and contracts. Digital-asset service providers are also prohibited from listing a memecoin for sale to a California resident if it was issued on or after January 1, 2027, and offered by or partnered with a public official.

The law aims to prevent the misuse of public office to issue cryptos that may be used for illicit purposes. The measure is part of an 11-bill package addressing corruption, consumer protection, privacy, and digital-asset crime.