California Gov. Gavin Newsom signed AB 2409 on Sept. 27, barring state and local officials from issuing meme coins. From Jan. 1, 2027, platforms cannot sell Californians new coins offered by or with federal, state or local officials; older tokens remain tradable.
The issuance ban covers elected and appointed state or local officers, as well as public employees with decision-making power over bids and contracts. California’s attorney general can sue for an injunction and disgorgement; district attorneys, city attorneys and county counsel may also enforce the ban on officials.
The Senate passed AB 2409 by a 40-0 vote in August, and the Assembly approved it 78-0. Assemblymember Avelino Valencia introduced the bill in February. Newsom’s office cited a July New York Times report that nearly 1 million people bought the TRUMP token and had since lost more than $3 billion; the report put Trump’s profit at about $636 million.
