In brief
- California public officials and employees will be prohibited from issuing meme coins under AB 2409.
- Digital asset platforms will also be barred from listing certain meme coins tied to federal, state or local officials.
- The law comes as lawmakers in Washington debate similar restrictions on politicians’ crypto ventures.
California Governor Gavin Newsom has signed a bill barring public officials in the state from issuing meme coins, adding new restrictions on political figures’ involvement in the crypto market.
Assembly Bill 2409, authored by Assemblymember Avelino Valencia (D-Anaheim), prohibits California public officers and employees from issuing meme coins. It also bars digital asset service providers from listing certain meme coins issued after January 1, 2027, if they are offered by or in partnership with a federal, state or local public official.
BREAKING: @CAGovernor Gavin Newsom just signed new legislation to prevent public officials from issuing meme coins, protect consumers, hold bad actors accountable, and recover money for victims.
This comes while the Trump admin displays an unprecedented amount of corruption and… pic.twitter.com/AveSyDJh9x
— Governor Newsom Press Office (@GovPressOffice) September 27, 2026
The law gives California’s attorney general, district attorneys, city attorneys and county counsels the ability to bring civil actions to enforce the restrictions, including seeking injunctions and disgorgement of funds.
The legislation arrives amid growing scrutiny of politicians launching or profiting from crypto tokens, particularly as U.S. President Donald Trump and his family have built a substantial business presence in digital assets.
Newsom’s press office explicitly linked the legislation to Trump’s meme coin efforts in a tweet, accusing the administration of “an unprecedented level of corruption.” Newsom himself reinforced this in a follow-up tweet, calling Trump a “scam” and stating that “No official should profit off their office.”
California targets political meme coins
AB 2409 defines a meme coin as a digital asset “marketed based on its association with” by internet memes, characters, current events or trends and whose value is primarily derived from “public interest, speculation or community engagement.”
The bill specifically prohibits a “public officer or public employee” from issuing one. Its exchange restriction applies to meme coins issued on or after January 1, 2027, when the token is offered by or in partnership with a federal public official or a state or local public officer.
That means the law does not amount to a blanket ban on meme coins in California. Instead, it targets tokens connected to public officials and puts obligations on digital asset platforms serving California residents.
Trump and meme coins
The California legislation arrives as federal lawmakers debate whether public officials should be allowed to launch or profit from crypto assets while holding office.
In July, Senator Kirsten Gillibrand (D-NY) renewed calls for legislation prohibiting politicians and their spouses from issuing or promoting digital assets, including meme coins. Her proposal came after Trump disclosed more than $1.2 billion in crypto-related earnings for the previous year, including more than $635 million attributed to his Solana-based TRUMP meme coin.
The issue has also become part of negotiations over the federal Clarity Act. A September version of the bill included provisions that would allow state attorneys general to enforce restrictions on covered officials issuing or sponsoring digital assets, while also requiring covered officials to divest certain crypto interests or place them in qualified blind trusts.
The Senate subsequently failed to advance the Clarity Act through a key procedural vote, leaving the federal ethics provisions unresolved.
Newsom has separately taken action against other ways public officials could potentially profit from information obtained through government service. In March, he signed an executive order prohibiting California public officials and appointees from using inside information to profit on prediction markets or helping others do so.
California expands crypto crime enforcement
The meme coin prohibition was one of several pieces of legislation Newsom signed addressing fraud, consumer protection and financial crime.
Senate Bill 1208, authored by Senator Tim Grayson (D-Concord), expands California’s money-laundering laws to cover transactions involving digital assets. The measure also establishes procedures for law enforcement to seize and forfeit digital assets connected to specified crimes, with provisions for distributing forfeited assets to victims. The expanded digital-asset provisions are scheduled to sunset on January 1, 2032.
Under the law, law enforcement can seek warrants to seize digital assets, wallets or accounts when there is probable cause that the assets represent criminal proceeds or were used to facilitate specified crimes. The legislation also provides procedures for freezing assets and resolving claims to seized property.
For the crypto industry, the rules add another state-level layer to an increasingly complicated U.S. regulatory landscape, even as Congress continues to debate a federal market-structure framework and regulators step in with rulemaking.
Newsom’s office has previously positioned crypto ethics as part of a broader campaign against conflicts of interest involving the Trump administration. In December 2025, the governor launched a website criticizing Trump’s pardons of crypto figures including Binance founder Changpeng Zhao, Silk Road creator Ross Ulbricht and BitMEX executives.
