Newsom signs California ban on public officials issuing meme coins

California Gov. Gavin Newsom signed Assembly Bill 2409 on September 27, barring public officials from issuing meme coins. The ban covers state and local elected or appointed officers. It includes legislators and advisory board members. It also covers public employees with decision-making power over bids and contracts. Starting January 1, 2027, crypto platforms cannot sell Californians new meme coins offered by or with federal, state, or local officials. The earlier coins discussed in the article do not fall under AB 2409. A Senate Judiciary Committee analysis said the listing cutoff would keep older coins such as Official Trump on exchanges. The analysis said earlier buyers could still sell if a price spike helped them recover losses. The California Attorney General can sue for an injunction and disgorgement. District attorneys, city attorneys, and county counsel may also enforce the ban on officials. Assemblymember Avelino Valencia, a Democrat from Anaheim, introduced the bill in February. The Senate passed it 40-0 in August. The Assembly approved the final version 78-0. Newsom linked the signing to President Donald Trump in his announcement. Newsom said Trump’s continuing scam was hurting American families. Newsom said California was fighting to make the economy work for people rather than the powerful. Trump launched the TRUMP token in January 2025, three days before his second inauguration. A July report by The New York Times found that nearly 1 million people bought the token and had since lost more than $3 billion. The report found that Trump profited roughly $636 million. BeInCrypto Markets data showed TRUMP trading at $2.09 at press time, down 97.2% from its record high. Central African Republic President Faustin-Archange Touadéra launched the Central African Republic Meme token in February 2025. Touadéra called it an experiment to unite people and raise the country’s profile. Market data showed the token down 99% from its all-time high. Former New York City Mayor Eric Adams unveiled NYC Token in Times Square in January 2026. The token neared a $600 million valuation before falling about 80%. Argentine President Javier Milei promoted the LIBRA token in February 2025. The token collapsed shortly afterward. California officials already have to 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.