Newsom signs California ban on public official memecoins

California Governor Gavin Newsom signed Assembly Bill 2409, which bans state and local public officials from issuing memecoins. Assembly Member Avelino Valencia introduced the bill on Feb. 20, 2026. The law prohibits digital asset service providers from offering certain memecoins issued by or in partnership with federal, state or local public officials to California residents. The law applies to tokens issued on or after Jan. 1, 2027. Newsom said no official should profit from public office. Newsom criticized US President Donald Trump's launch of a memecoin in 2025. Existing California law already restricts state officers and employees from business activity that conflicts with their duties. AB 2409 adds the memecoin ban to the Government Code. California's attorney general, district attorneys, city attorneys and county counsel can enforce the prohibitions through civil actions. Newsom also signed Senate Bill 1208. The bill expands California's money laundering statutes to cover illicit transactions using digital assets. The bill authorizes law enforcement to freeze, seize and forfeit digital assets linked to crimes.