Newsom Signs Ban on Public Officials Issuing Memecoins in California
California Governor Gavin Newsom has signed legislation that bans state and local public officials from issuing memecoins, targeting tokens issued on or after January 1, 2027. The law also prohibits digital asset service providers from offering certain memecoins to California residents if they were issued by or in partnership with federal, state, or local public officials. Newsom slammed US President Donald Trump's crypto ventures and said 'no official should profit off their office.' The new legislation adds a ban on issuing memecoins to the Government Code.
The bill was introduced by Assembly Member Avelino Valencia on February 20, 2026, and it expands California's existing money laundering statutes to include illicit transactions made using digital assets. It also authorizes law enforcement to freeze, seize, and forfeit digital assets linked to crimes. The attorney general, a district attorney, a city attorney, or county counsel can enforce the prohibitions by filing a civil action.
Newsom's signing of the bill comes after California's Senate passed a similar measure to ban memecoin issuance by public officials last year. Trump launched a memecoin in 2025, which Newsom criticized as a way for officials to profit off their office.