California Regulates Crypto Market with New Laws

California has become the latest state to regulate the crypto market, with Governor Gavin Newsom signing two bills into law. The first bill, AB 2409, prohibits public officials from issuing their own memecoins and restricts digital asset service providers from listing tokens linked to government officials.

The new law takes effect on January 1, 2027, for any token that has been released after this date. Public officials found in violation of the law may face lawsuits from state attorneys general, district attorneys, city attorneys, and county counsels.

The bill aims to prevent public officials from earning income through business activities associated with their public duties. Newsom also criticized President Donald Trump for his involvement in the crypto market, mentioning his 2025 memecoin launch.