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California Bans Public Officials From Issuing Meme Coins
The law bars officials from issuing meme coins and lets California enforce the ban with civil actions while restricting certain tokens offered to residents.
- On Sunday, California Governor Gavin Newsom signed Assembly Bill 2409, barring state and local public officials from issuing meme coins effective Jan. 1, 2027, to prevent officials from profiting off their office.
- Newsom used the signing to criticize President Donald Trump, citing reports that nearly 1 million TRUMP token buyers lost over USD 3 billion while Trump earned hundreds of millions from the token.
- Assembly Member Avelino Valencia introduced the legislation, which prohibits digital asset service providers from listing meme coins linked to officials starting Jan. 1, 2027. Prosecutors can enforce the ban through civil actions seeking injunctions or disgorgement.
- Senate Bill 1208, also signed on Sunday, expands California's money laundering statutes to cover digital assets, authorizing law enforcement to freeze, seize, and forfeit assets linked to crimes for 10 calendar days.
- The money laundering provisions extend until Jan. 1, 2032, with remaining assets after three years entering California's Restitution Fund for victim services, establishing a long-term framework for asset seizure and victim compensation.
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Newsom signs California ban on public officials issuing memecoins
The law also restricts crypto companies from offering certain memecoins tied to public officials to California residents and takes effect for tokens issued from Jan. 1, 2027. California Governor Gavin Newsom signed legislation barring state and local public officials from issuing memecoins, as Newsom criticized US President Donald Trump’s crypto ventures. Newsom on Sunday signed Assembly Bill 2409, introduced by Assembly Member Avelino Valencia…
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Total News Sources25
Leaning Left0Leaning Right1Center5Last UpdatedBias Distribution83% Center
Bias Distribution
- 83% of the sources are Center
83% Center
C 83%
R 17%
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