Governor Gavin Newsom signed Assembly Bill 2409 on September 27, prohibiting public officials in California from issuing meme coins. The legislation also restricts crypto platforms from selling new meme coins associated with public officials to residents of the state starting January 1, 2027.
The ban applies to elected and appointed officers at state and local levels, including legislators and advisory board members. It also covers public employees with decision-making authority over contracts and bids. Enforcement powers are granted to the Attorney General, district attorneys, and city attorneys.
The law does not affect existing tokens, such as the Official Trump (TRUMP) coin, allowing current holders to sell their assets. The legislation follows a trend of political figures launching tokens, such as the TRUMP coin, which saw nearly 1 million buyers lose over $3 billion, while Donald Trump reportedly profited by $636 million.
Other examples cited include the Central African Republic Meme (CAR) token launched in February 2025, the NYC Token (NYC) unveiled by Eric Adams in January 2026, and the LIBRA token promoted by Javier Milei. These assets experienced significant value declines following their initial launches.
