California Bans Public Officials From Issuing Memecoins

California Governor Gavin Newsom has signed legislation to ban public officials from issuing memecoins, effective January 1, 2027. The new law targets coins that carry a public official's name or image and are often driven by hype and speculation.

The move comes after nearly 1 million buyers of President Donald Trump's memecoin lost more than $3.8 billion, while Trump earned around $636 million. Newsom's office cited this example as a reason for the ban, stating that 'no official should profit off their office.'

The law also extends money-laundering laws to digital assets and sets rules for seizing crypto tied to crime. This includes allowing victims to recover stolen funds.