Newsom Signs California Ban on Public Officials Issuing Memecoins
California Governor Gavin Newsom has signed a new law banning public officials from issuing memecoins, a move that also targets digital asset service providers. The legislation, Assembly Bill 2409, prohibits state and local public officials from creating or partnering with entities to issue these tokens.
The ban is set to take effect on January 1, 2027, for tokens issued after this date. Newsom criticized US President Donald Trump's crypto ventures, 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 new law also empowers California's attorney general or a district attorney to enforce the prohibitions by filing a civil action. This move follows existing California law that prohibits state officers and employees from engaging in activities inconsistent with their duties.