California Cracks Down on Memecoins and Cryptocurrency Crimes

California has become the latest state to tighten its regulations on cryptocurrencies, specifically targeting memecoins and digital asset enforcement. Governor Gavin Newsom signed Assembly Bill 2409 into law on September 27, which prohibits public officials from issuing memecoins issued on or after January 1, 2027.

The bill also includes provisions that expand anti-money laundering laws and regulations related to crimes committed with the use of cryptocurrencies. This will enable the government to seize digital assets associated with transnational criminal organizations and provide ways to recover money for victims of crypto scams and frauds.

In addition, California has passed Senate Bill 1208, which amends existing law related to money laundering to cover any illegal transactions involving digital assets. The new laws will give rise to new compliance obligations for public officials, digital asset businesses, and crypto users in California.