California Governor Gavin Newsom has signed Assembly Bill 2409, which prohibits state public officials and employees from issuing meme coins. The law defines these assets as digital tokens whose value relies on internet trends, speculation, or community engagement rather than utility.
Starting January 1, 2027, digital asset service providers are barred from listing meme coins issued by or in partnership with federal, state, or local public officials. The legislation grants state authorities, including the attorney general and district attorneys, the power to seek injunctions and disgorgement of funds.
The new rules complement Senate Bill 1208, which expands state money-laundering laws to include digital assets. This measure allows law enforcement to seize and forfeit crypto assets linked to criminal activity, with procedures for distributing recovered funds to victims. These provisions remain in effect until January 1, 2032.
These actions follow Newsom's previous executive order from March, which restricted officials from using non-public information to profit from prediction markets. The governor's office stated that these measures aim to prevent conflicts of interest and address concerns regarding political figures profiting from their positions.
