California Officials Blocked From Issuing Meme Coins
California Governor Gavin Newsom has signed legislation banning state and local public officials from issuing meme coins. The bill, which passed both the Senate (40-0) and Assembly (78-0), prohibits 'public officers' - including elected and appointed officials, lawmakers, and members of government boards and committees - from creating digital assets associated with internet memes, public figures, celebrities, fictional characters, current events, or online humor. These tokens will be considered a financial conflict of interest, potentially leading to 'pay-to-play' arrangements and foreign influence.
The new law defines a meme coin broadly, covering digital assets that are easily created and can be controlled pseudonymously, which creates risks for corruption. However, the bill is not a statewide ban on meme coins; tokens like Dogecoin remain unaffected. Instead, it targets California officials' ability to create and promote their own meme coins.
The law will prohibit digital asset service providers from offering California residents meme coins issued after January 1, 2027. The new legislation provides for civil enforcement only, with the state attorney general able to seek an injunction or order disgorgement of ill-gotten money in case of violations.