California’s New Legislation on Memecoins
California’s Governor, Gavin Newsom, has enacted new legislation that prohibits public officials from creating or promoting certain memecoins—a move aimed at preventing officials from profiting through their positions. This law, known as Assembly Bill 2409, was signed by Newsom on a recent Sunday and specifically targets tokens associated with state and local authorities, taking effect for any tokens launched from January 1, 2027.
Background and Purpose
The measure was first introduced by Assembly Member Avelino Valencia on February 20, 2026, and it represents a tightening of existing laws that prevent government employees from undertaking business activities that conflict with their official responsibilities. The law includes provisions to curb the ability of digital asset service providers from selling these memecoins, particularly when they are linked to public officials.
Governor’s Statement
In a statement during the signing, Newsom denounced former President Donald Trump’s previous foray into the world of memecoins in 2025, emphasizing, “No official should profit off their office — and we’re putting stronger protections in place to ensure it doesn’t happen in our state.”
Enforcement and Additional Legislation
Furthermore, the legislation allows California’s attorney general, along with other local legal authorities, the power to enforce these regulations through civil actions. In addition to AB 2409, Newsom also approved Senate Bill 1208 the same day, which broadens the state’s existing money laundering laws to encompass illegal activities involving digital currencies, thereby granting law enforcement the authority to act against criminally-linked digital assets.
