California Governor Gavin Newsom Signs Law Restricting Meme Coins Linked to Public

California Governor Gavin Newsom signs legislation restricting meme coins issued by public officials and strengthening digital

California Governor Gavin Newsom has signed legislation prohibiting public officials in the state from issuing meme coins and restricting digital asset service providers from listing certain tokens associated with public officials.

The legislation, signed on September 27, is part of a broader package of measures covering cryptocurrency fraud, money laundering. Coin Bureau in a post on X, citing Newsom’s office.

California Targets Public Official Meme Coins

Under Assembly Bill 2409, California public officers and employees are prohibited from issuing meme coins. The law also restricts digital asset service providers from listing for sale to California residents certain meme coins issued on or after January 1, 2027, when those tokens are offered by or in partnership with a federal public official or a state or local public officer.

The legislation was introduced by Assemblymember Avelino Valencia and gives the California attorney general, district attorneys, city attorneys and county counsel authority to enforce the prohibitions through civil actions.

Newsom’s office framed the measure as part of an effort to increase accountability among public officials and pointed to President Donald Trump’s meme coin when discussing the risks associated with officials profiting from speculative digital assets.

New Rules Address Crypto Fraud and Money Laundering

The meme coin restrictions were signed alongside other legislation targeting cryptocurrency-related financial crime.

Senate Bill 1208, sponsored by Senator Tim Grayson, addresses money laundering involving digital assets. The package also establishes clearer rules intended to help victims recover funds following cryptocurrency fraud and creates a legal process for seizing digital assets connected to transnational criminal networks.

The measures form part of a wider set of consumer and accountability laws signed by Newsom on September 27. The governor’s office said the legislation is intended to protect consumers while strengthening enforcement against financial misconduct involving digital assets.

Broader Consumer Protection Measures

The legislation signed alongside the crypto-related measures also covers areas outside digital assets.

California introduced requirements for refunds involving canceled, postponed or rescheduled events and restrictions on speculative ticket sales. Other measures address unauthorized third-party sales of restaurant and golf-course reservations and expand consumer rights concerning personal information and privacy settings.

For the cryptocurrency industry, the most specific change is AB 2409's restriction on meme coins associated with public officials. The law distinguishes between ordinary meme coins and those issued or offered in connection with public officials, with the relevant listing restrictions applying to tokens issued from January 1, 2027.

The signing establishes the January 1, 2027, date as the key point specified in the legislation for the covered meme coin listing restrictions.

Writer: Victoria Hale
Technology & Blockchain Writer

Victoria Hale writes about blockchain technology, digital infrastructure, and the intersection of emerging technologies with finance. Her articles explore how new protocols and systems are shaping the evolving digital economy.

She prioritises clarity and accuracy when explaining technical developments to a general audience.