Newsom Signs California Ban on Public Official Memecoins

California Governor Gavin Newsom has signed legislation that bars state and local public officials from issuing memecoins, a move that also prohibits digital asset service providers from offering certain memecoins to California residents. The new law 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.

Newsom slammed US President Donald Trump's launch of a memecoin in 2025, saying '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 expands California’s existing money laundering statutes to include illicit transactions made using digital assets. It authorizes California's attorney general, a district attorney, a city attorney or county counsel to enforce the prohibitions by filing a civil action.