California Governor Newsom Enacts Prohibition on Memecoin Issuance by Government Officials
The legislation additionally places restrictions on cryptocurrency firms regarding the provision of specific memecoins connected to government officials for California's residents, becoming enforceable for digital tokens created starting Jan. 1, 2027.
Governor Gavin Newsom of California has put his signature on legislation that prevents public officials at the state and local levels from issuing memecoins, while simultaneously taking aim at US President Donald Trump's cryptocurrency business endeavors.
On Sunday, Newsom enacted Assembly Bill 2409, which was brought forward by Assembly Member Avelino Valencia on Feb. 20, 2026. The legislation further bars digital asset service providers from making available certain memecoins that have been issued by or created in collaboration with public officials at the federal, state or local level to residents of California, with enforcement beginning for tokens created on or after Jan. 1, 2027.
No official should profit off their office — and we're putting stronger protections in place to ensure it doesn't happen in our state
Gavin Newsom
This statement was made by Newsom on Sunday while he criticized Trump's decision to launch a memecoin in 2025.
California's current legal framework already includes prohibitions preventing state officers and employees from participating in employment activities or business enterprises that conflict with their official responsibilities. AB 2409 now incorporates a prohibition on memecoin issuance into the Government Code.
The legislation further grants authority to California's attorney general, along with district attorneys, city attorneys and county counsel, to pursue enforcement of these prohibitions through the filing of civil legal actions.
Additionally on Sunday, Newsom enacted Senate Bill 1208, which serves to broaden California's current money laundering laws to encompass illegal transactions conducted through the use of digital assets, while also providing broad authorization for law enforcement agencies to freeze, seize and forfeit digital assets that are connected to criminal activities.