California Cracks Down on Meme Coins Tied to Public Officials

California has become the latest state to crack down on meme coins tied to public officials. Governor Gavin Newsom signed Assembly Bill 2409 into law, which prevents California officials from issuing their own crypto meme coins and bars companies from listing any meme coin that uses an official's likeness or image.

The new law defines a meme coin as a type of cryptocurrency built around an internet joke, celebrity, or trend, where price is typically driven by hype and speculation rather than any underlying business or practical use case. The bill aims to prevent officials from profiting off their position and ensures that California is taking steps to prevent such activities.

This move follows reports that nearly 1 million people who purchased a meme coin launched by a sitting figure have collectively lost more than $3 billion, while the official reportedly profited by roughly $636 million. Governor Newsom stated that no official should be able to profit off their office and that California is putting stronger protections in place.