On September 27, 2026, California Governor Gavin Newsom signed legislation that bans state and local public officials from issuing memecoins, part of an 11-bill package addressing corruption and consumer protection.
The measure, Assembly Bill 2409, also covers public employees with decision-making authority over government bids and contracts.
The legislation seeks to prevent conflicts of interest associated with officials issuing memecoins.
What California’s Memecoin Law Covers
Digital asset service providers cannot list qualifying memecoins for sale on behalf of, or purchase by, California residents.
The provision covers tokens issued on or after January 1, 2027, and offered by, or in partnership with, federal, state, or local public officers.
However, the law does not impose a blanket ban on memecoin trading.
California’s attorney general can seek court orders and the surrender of proceeds through civil enforcement. Local prosecutors and government attorneys can also enforce the issuance prohibition.
Newsom Draws Contrast with Trump
Newsom’s office titled the announcement “THE OPPOSITE OF TRUMP,” criticizing President Donald Trump’s involvement in his namesake token, $TRUMP memecoin.
“While the scam that is Donald Trump continues to hurt American families, California is fighting to make our economy work for people, not the powerful. 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 said.
Trump launched $TRUMP on January 17, 2025, three days before Trump’s second inauguration. The frenzy was so intense that its price rose from under $1 to $75 within a day or two, pushing its market capitalization to approximately $14 billion.
Data tracked by Nansen shows that 988,905 buyers lost a combined $3.81 billion. Separately, Trump’s financial disclosure lists $636 million in royalties from the coin.
The wider package also includes measures addressing restitution for crypto-crime victims and the seizure of illicit digital assets.
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