California Slams Door on Public Official Memecoins
California Governor Gavin Newsom has signed a law banning public officials from launching their own memecoins, effective January 1, 2027. The bill, Assembly Bill 2409, prohibits state and local officials from issuing memecoins outright, as well as stops digital asset service providers from offering California residents any memecoin issued by or created in partnership with federal, state, or local officials.
The law is part of a broader package aimed at cracking down on corruption and shady digital asset activity. Newsom's office framed the bills as 'the opposite of Trump,' pointing directly at President Donald Trump's $TRUMP token launch. While Trump's office did not immediately respond to a request for comment, nearly 1 million people who bought Trump's meme coin lost more than $3 billion, while Trump's own financial disclosure listed $636 million in royalties from the coin.
The ban is built into California's existing ethics framework and extends a rule that already prohibits officers and employees from taking on any employment, activity, or enterprise that conflicts with their official duties. Enforcement of the ban will be carried out by California's attorney general, district attorneys, city attorneys, and county counsel through civil lawsuits.