California Governor Gavin Newsom has signed Assembly Bill 2409, which prohibits state and local public officials from issuing memecoins. The legislation, introduced by Assembly Member Avelino Valencia on Feb. 20, 2026, officially adds this restriction to the state's Government Code.
The new law also prevents digital asset service providers from offering specific memecoins linked to public officials to residents of California. These provisions apply to any tokens issued on or after Jan. 1, 2027. The measure aims to prevent officials from profiting from their positions through such assets.
Enforcement of the new regulations is granted to the state's attorney general, district attorneys, city attorneys, and county counsel. These authorities are empowered to file civil actions against violators to ensure compliance with the established prohibitions.
In addition to the memecoin ban, Newsom signed Senate Bill 1208. This legislation updates California's money laundering statutes to cover illicit transactions involving digital assets. It also grants law enforcement agencies broader powers to freeze, seize, and forfeit digital assets connected to criminal activity.
