California signs AB 2409 to ban public officials from issuing meme coins

California Governor Gavin Newsom signed AB 2409 on Sept. 27, creating what the state describes as the first explicit ban on public officials issuing meme coins. The law bars California public officials from creating, issuing, or promoting such tokens, and also restricts crypto platforms from listing meme coins that use the likeness or image of public officials. Introduced in February by Assemblymember Avelino Valencia, the bill passed unanimously in both chambers of the state legislature, 40-0 in the Senate and 78-0 in the Assembly, and is set to take effect on Jan. 1, 2027. The governor’s office framed the move in direct contrast to Donald Trump, even using the phrase "The opposite of Trump!" in its press release. That release said Trump’s 2025 meme coin caused nearly 1 million buyers to lose more than $3 billion, while Trump himself made about $636 million. Those figures were attributed by the original report to the California governor’s office. Newsom said no public official should profit from public office and called the bill part of a broader effort to strengthen safeguards. Newsom also signed SB 1208 the same day. That measure, introduced by State Senator Tim Grayson, targets digital asset money laundering, strengthens seizure tools for crypto assets tied to criminal groups, and creates a compensation mechanism for victims of crypto scams.