California Blocks Public Officials from Issuing Meme Coins Under New Law

California Governor Gavin Newsom has signed Assembly Bill 2409 into law, which prohibits public officials from issuing meme coins. The new legislation bars digital asset platforms from listing certain meme coins tied to federal, state or local officials. This comes as lawmakers in Washington debate similar restrictions on politicians' crypto ventures.

The bill defines a meme coin as a digital asset 'marketed based on its association with' internet memes, characters, current events or trends and whose value is primarily derived from 'public interest, speculation or community engagement.' Public officials and employees are prohibited from issuing these coins under the new law. Digital asset service providers will be barred 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.

The legislation gives California's attorney general, district attorneys, city attorneys and county counsels the ability to bring civil actions to enforce the restrictions. This includes seeking injunctions and disgorgement of funds.