California Bans Public Officials From Issuing Memecoins Under New Digital-Assets Law

California Governor Gavin Newsom has signed Assembly Bill 2409 into law, prohibiting public officials from issuing memecoins and restricting companies that list tokens tied to an official's likeness or image. The new legislation, part of a package presented as an anti-corruption crackdown, directly prohibits California public officials from issuing memecoins.

The measure focuses on official-linked tokens rather than imposing a general restriction on memecoins. It also sets conditions for digital-asset service providers serving California residents, restricting them from listing qualifying memecoins if the tokens are issued on or after January 1, 2027 and are offered by, or partnered with, a federal, state or local public official.

California's attorney general, district attorneys, city attorneys, and county counsels have been authorized to bring civil enforcement actions under the law. Available remedies include injunctions and disgorgement.