California Governor Gavin Newsom signs legislation banning public officials from issuing meme coins.

California Governor Gavin Newsom signed Assembly Bill 2409 and Senate Bill 1208 on Sunday, creating a new state-level ban on memecoin issuance by state and local public officials while expanding digital asset tools used against crime. The signing came as Newsom criticized US President Donald Trump’s crypto ventures, including Trump’s launch of a memecoin in 2025.

Assembly Bill 2409 sets a memecoin ban for officials

Assembly Bill 2409 bars state and local public officials from issuing memecoins. The bill was introduced by Assembly Member Avelino Valencia on Feb. 20, 2026, and it adds the memecoin ban to California’s Government Code.

The law also reaches digital asset service providers. It prohibits them from offering certain memecoins issued by, or issued in partnership with, federal, state or local public officials to California residents. The restriction applies to tokens issued on or after Jan. 1, 2027.

Newsom framed the measure as a conflict-of-interest guardrail. “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 Sunday as he slammed Trump’s launch of a memecoin in 2025.

Existing rules already covered some conflicts

California already has rules that address public officials’ outside activities. Existing state law prohibits state officers and employees from engaging in employment activity or enterprise that is inconsistent with their duties. Assembly Bill 2409 keeps that existing framework and adds a specific prohibition on issuing memecoins.

The new law gives enforcement a defined path. It authorizes California’s attorney general, a district attorney, a city attorney or county counsel to enforce the prohibitions by filing a civil action. State and local legal officials can therefore pursue a court action to enforce the ban.

Senate Bill 1208 expands digital asset crime tools

Newsom also signed Senate Bill 1208 on the same Sunday. That measure expands California’s existing money laundering statutes to include illicit transactions made using digital assets.

The bill broadly authorizes law enforcement to freeze, seize and forfeit digital assets linked to crimes. Senate Bill 1208 targets criminal use of digital assets, while Assembly Bill 2409 addresses memecoin issuance by public officials.

What the two measures change together

Assembly Bill 2409 focuses on public office and token issuance. It targets memecoins issued by officials or created in partnership with them, and it restricts providers from offering certain official-linked tokens to California residents. Senate Bill 1208 focuses on illicit transactions made using digital assets and expands seizure powers.

The timing of the signing, the reference to Trump’s 2025 memecoin launch, and the explicit ban on official memecoin issuance put the legislation in a concrete political and regulatory context. For California, the changes add a memecoin-specific conflict rule to the Government Code and set a Jan. 1, 2027 boundary for covered tokens.