Newsom Signs California Ban on Public Official Memecoin Issuance

California Governor Gavin Newsom has signed legislation that prohibits state and local public officials from issuing memecoins. The law also prevents digital asset service providers from offering certain memecoins issued by or in partnership with federal, state or local public officials to California residents.

The bill, Assembly Bill 2409, was introduced by Assembly Member Avelino Valencia on February 20, 2026. It adds a ban on issuing memecoins to the Government Code and authorizes California's attorney general, a district attorney, a city attorney or county counsel to enforce the prohibitions.

Newsom signed the bill on Sunday, citing that 'No official should profit off their office, and we’re putting stronger protections in place to ensure it doesn’t happen in our state.'

The law also applies to tokens issued on or after January 1, 2027. Existing California law already prohibits state officers and employees from engaging in employment activity or enterprise that is inconsistent with their duties.