California signs law restricting officials’ meme coins

California Gov. Gavin Newsom signed AB 2409 on September 27, barring covered state and local officials and certain government employees from issuing meme coins. A separate provision will restrict digital-asset providers serving Californians from listing certain newly issued tokens linked to public officials beginning January 1, 2027. The prohibition covers elected and appointed state and local officers, including legislators and members of government boards and commissions. It also applies to public employees whose duties include decision-making authority over government bids or contracts. Under the law, issuing a coin includes making it available to the public for purchase, donation or exchange of value. The platform restriction applies to qualifying meme coins issued on or after January 1, 2027, when they are offered by or in partnership with a covered official. It also reaches tokens linked to federal officials. The law does not generally require platforms to remove older tokens or ban meme-coin trading more broadly. AB 2409 provides for civil enforcement, not a new criminal offense.