Home
Cryptocurrency
Cryptocurrency News
California Bans Public Officials From Launching Memecoins Under New Law

California Bans Public Officials From Launching Memecoins Under New Law

The law also restricts California crypto platforms from listing certain official-linked memecoins from 2027.

Written by Rahul Dhingra, Edited by Rohan Pal | Updated: 28 September 2026 16:23 IST

California Bans Public Officials From Launching Memecoins Under New Law

Photo Credit: Unsplash/Kanchanara

AB 2409 was signed into law by California Governor Gavin Newsom

Click Here to Add Gadgets360 As A Trusted Source

Highlights

AB 2409 was introduced by Assemblymember Avelino Valencia
District and city attorneys can seek injunctions under the law
Covered employees include officials involved in government contracts

The California Governor, Gavin Newsom, has signed AB 2409 into law on September 27, prohibiting covered state and local government officials from launching memecoins and restricting some official tokens launched from January 1, 2027. The California governor's office released an announcement about the signing of the bill, which was part of a package addressing public ethics, crypto crimes, and consumer protection. Newsom stated that “No official should profit off their office,” making a connection to fears of political figures earning income through digital currencies.

New Rules Extend to Certain Digital Asset Service Providers

Assembly Member Avelino Valencia presented Bill AB 2409 on February 20, 2026. Later, California legislators voted for the measure without any form of dissent recorded before passing it on to Newsom. The bill was first passed by the Assembly with a vote of 77-0 in May, followed by the Senate, which passed it 40-0 in August. According to the enrolled statute, a California public official or covered public employee is not allowed to launch a memecoin. Under the statute, public officers comprise both elected and appointed officials at the state and local levels, state legislators, and government board members.

JUST IN: California bans public officials from issuing memecoins

Governor Gavin Newsom has signed a law prohibiting public officials from creating or promoting memecoins tied to their official positions starting January 1, 2027. pic.twitter.com/vwCXA5ktTT
— crypto.news (@cryptodotnews) September 27, 2026

However, the employee provision is narrower. This provision applies to state or local government employees who have the authority to make decisions regarding bids or contracts. According to the Act, issuance means making a coin available for purchase, donation, or exchange of value, regardless of its promotion. There is an additional provision that will apply to digital asset service providers for California consumers. As of January 1, 2027, such providers shall not be able to list any memecoin that has been listed since that time by or in collaboration with any federal or California public official.

The district attorneys, city attorneys, and county counsel have the power to implement the prohibition on public officers and covered employees of California. Under the enacted law, they have the same power to seek an injunction and disgorgement when enforcing this provision of the law.

Bitcoin Stays Near $83,000 as Treasury Yields Limit Recovery

The previous analysis indicated that the bill was based on the California regulations limiting public officials and employees from engaging in conduct that conflicts with their public responsibilities. The Assembly Banking and Finance Committee defined memecoins as digital tokens linked to memes, individuals, events, or other trends on the internet whose valuation is dependent on speculative and communal interest.

Newsom's signature was accompanied by a statement in which he criticised President Donald Trump over his association with the Official Trump memecoin as well as other cryptocurrencies. According to the office of the governor, there was reporting that over one million TRUMP holders had collectively lost $3 billion (roughly Rs. 28,803 crore), whereas Trump has made billions of dollars from it.

Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.

Comments

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Further reading: crypto memecoin, memecoin market volatility, Crypto Token Listing

Rahul Dhingra

Email Rahul Dhingra

Rahul Dhingra is a crypto writer at Gadgets 360, where he covers the exciting world of Cryptocurrency, Blockchain, Defi and Web3. Before joining Gadgets 360, he worked as a content specialist for a European-based Crypto Exchange. Rahul loves storytelling, not just through the written word but also through the visual medium. Beyond his professional life, Rahul is a sports fanatic. Whether it’s cricket or football, his passion for the game is contagious. More