California Governor Gavin Newsom has signed legislation that bars state and local public officials from issuing memecoins, while also criticizing United States President Donald Trump’s cryptocurrency ventures.
Newsom signed Assembly Bill 2409, which was introduced by Assembly Member Avelino Valencia on Feb. 20, 2026. The legislation also prohibits digital asset service providers from offering certain memecoins issued by, or in partnership with, federal, state, or local public officials to residents of California. The restrictions apply to tokens issued 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,” Newsom stated, while criticizing the launch of a memecoin by Trump in 2025.
While existing California law already prohibits state officers and employees from engaging in employment activities or enterprises inconsistent with their duties, AB 2409 explicitly adds a ban on issuing memecoins to the Government Code. The law authorizes the state’s attorney general, along with district attorneys, city attorneys, and county counsels, to enforce these prohibitions through civil actions.
Additionally, Newsom signed Senate Bill 1208 on the same day. This companion measure expands California’s existing money laundering statutes to cover illicit transactions conducted using digital assets, broadly authorizing law enforcement to freeze, seize, and forfeit digital assets linked to criminal activity.
