Governor Gavin Newsom signed Assembly Bill (AB) 2409 on September 27, barring California public officials from issuing meme coins and preventing crypto platforms from selling Californians new meme coins tied to public officials.
The bill, introduced in February by Assemblymember Avelino Valencia, a Democrat from Anaheim, passed the Senate 40-0 in August and the Assembly 78-0 before Newsom's signature.
Scope of the Ban
AB 2409 prohibits state and local elected or appointed officers, including legislators and advisory board members, from creating tokens. The restriction also covers public employees with decision-making authority over bids and contracts.
Crypto platforms face listing restrictions beginning January 1, 2027. They cannot sell Californians new meme coins offered by or associated with federal, state, or local officials.
According to a Senate Judiciary Committee analysis, the law exempts existing coins such as Official Trump (TRUMP), allowing earlier buyers to continue selling their holdings.
Enforcement and Context
The Attorney General can pursue injunctions and disgorgement. District attorneys, city attorneys, and county counsel may also enforce the ban.
Newsom linked the signing to President Trump's token launch. Nearly 1 million people purchased TRUMP after its January 2025 debut, and the token declined 97.2% from its record high to $2.09 at the time of reporting. According to a New York Times report cited by the governor's office, buyers lost more than $3 billion collectively.
The ban follows meme coins launched by other national leaders that experienced significant losses. Central African Republic President Faustin-Archange Touadéra launched Central African Republic Meme (CAR) in February 2025, which declined 99% from its peak. Former New York City Mayor Eric Adams unveiled NYC Token (NYC) in January 2026, which crashed approximately 80% from a near $600 million valuation.
Broader Regulatory Trend
California officials already must disclose their crypto holdings. In March, Newsom barred Governor's Office appointees from using nonpublic information to profit on prediction markets. In April, the US Senate passed a resolution banning senators from trading on prediction markets, reflecting similar regulatory movements at the federal level.
