Governor Gavin Newsom signed Assembly Bill (AB) 2409 on September 27, barring California public officials from issuing meme coins.
The law also stops crypto platforms from selling Californians new meme coins tied to public officials. Newsom’s office pitched the package as a contrast to President Donald Trump’s own token.
Who AB 2409 Puts Off-Limits
Assemblymember Avelino Valencia, a Democrat from Anaheim, introduced the bill in February. The Senate passed it 40-0 in August, and the Assembly then approved the final version 78-0.
Follow us on X to get the latest news as it happens
The ban covers state and local elected or appointed officers, including legislators and advisory board members. It also reaches public employees with decision-making power over bids and contracts.
Platforms face a separate limit from January 1, 2027. They cannot sell Californians new meme coins offered by, or with, federal, state, or local officials.
According to a Senate Judiciary Committee analysis, the cutoff keeps older coins such as Official Trump (TRUMP) on exchanges. As a result, earlier buyers can still sell if a price spike helps them recover losses.
The Attorney General can sue for an injunction and disgorgement. District attorneys, city attorneys, and county counsel may also enforce the ban on officials.
Newsom linked the signing directly to Trump in the announcement.
“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,” he said.
From the White House to Bangui
California’s ban follows several meme coins launched or promoted by national leaders and a former mayor. Each token lost most of its value after its debut.
Trump launched TRUMP in January 2025, three days before his second inauguration. Newsom’s office pointed to a July report by The New York Times on Official Trump (TRUMP).
Nearly 1 million people bought the token and have since lost more than $3 billion. Trump himself profited by roughly $636 million, the report found. TRUMP traded at $2.09 at press time, down 97.2% from its record high, per BeInCrypto Markets data.
Meanwhile, Central African Republic President Faustin-Archange Touadéra launched Central African Republic Meme (CAR) in February 2025. He 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 (NYC) in Times Square in January 2026. It neared a $600 million valuation before crashing about 80%.
Argentine President Javier Milei drew similar scrutiny in February 2025 after promoting the LIBRA token, which collapsed shortly afterward.
Meme Coins Join California’s Growing List of Off-Limits Bets
None of those earlier coins fall under AB 2409. However, its listing rule does cover federal officials. The law extends earlier ethics steps by the Newsom administration.
California officials already have to disclose their crypto holdings. In March, Newsom also barred Governor’s Office appointees from using nonpublic information to profit on prediction markets.
Washington has moved in a similar direction. In April, the US Senate passed a resolution banning senators from trading on prediction markets.
Subscribe to our YouTube channel to watch leaders and journalists provide expert insights
Source: BeInCrypto
