California Bans Public Officials from Issuing Memecoins Amid Crypto Regulation Efforts

California Governor Gavin Newsom has signed legislation that prohibits state and local public officials from issuing memecoins. The bill, Assembly Bill 2409, was introduced by Assembly Member Avelino Valencia on February 20, 2026. It bars digital asset service providers from offering certain memecoins issued by or in partnership with federal, state, or local public officials to California residents.

The law applies to tokens issued on or after January 1, 2027. Newsom criticized US President Donald Trump's crypto ventures and slammed his launch of a memecoin in 2025. 'No official should profit off their office, and we’re putting stronger protections in place to ensure it doesn’t happen in our state,' Newsom said.

The existing California law already prohibits state officers and employees from engaging in employment activity or enterprise that is inconsistent with their duties. AB 2409 adds a ban on issuing memecoins to the Government Code. The bill also authorizes California's attorney general, a district attorney, a city attorney, or county counsel to enforce the prohibitions by filing a civil action.