California Slams the Door on Public Officials' Meme Coin Launches
California lawmakers have passed a bill aimed at preventing public officials from issuing meme coins. The measure, known as Assembly Bill 2409, was approved by the Senate in a 40-0 vote and the Assembly concurred in the Senate's amendments with a 78-0 vote. The bill adds a new chapter to California's Government Code, barring any public officer or employee from issuing a meme coin.
The legislation also prohibits digital asset service providers from listing for sale on behalf of, or for purchase by, a California resident any meme coin issued on or after January 1, 2027. The state attorney general, district attorneys, city attorneys, and county counsel are authorized to enforce the ban through civil actions seeking injunctive relief and disgorgement.
The bill arrives after several high-profile cases of political meme coins proving costly for everyday buyers. For example, the TRUMP memecoin launched by Donald Trump before his return to the White House ultimately erased billions in value, with insiders extracting roughly $4 billion while nearly a million retail buyers absorbed losses.