California Gov. Gavin Newsom on Sunday signed AB 2409, making it illegal for state and local officials to launch meme coins, and his office pitched the law as a contrast with President Donald Trump and his own token.
Under the bill, a state or local “public officer or public employee shall not issue a meme coin.” That covers elected and appointed officials, including legislators and board members, plus employees who decide on contracts.
The law also bars crypto platforms from listing, for California residents, any meme coin issued on or after Jan. 1, 2027 that a federal, state or local official offers or helps offer. That cutoff appears to leave out the $TRUMP token, which launched in January 2025, though the law defines issuing broadly, as making a coin available for public purchase, donation or exchange.
The attorney general can sue to block violations and seek disgorgement, and district attorneys, city attorneys and county counsel can enforce the ban on issuing.
Assemblymember Avelino Valencia, an Anaheim Democrat, introduced the bill in February. It passed the state Senate 40-0 on Aug. 26, and the Assembly gave final approval 78-0 the same day.
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‘The Opposite of Trump’
Newsom’s office headlined its announcement “THE OPPOSITE OF TRUMP!”
“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,” Newsom said in the release. He added that “no official should profit off their office” and that the state is putting stronger protections in place.
The release said that “the nearly 1 million people who bought Trump’s meme coin have lost more than $3 billion.” Nansen data reported this summer showed that 988,905 wallets that bought the token were underwater, with combined losses of $3.81 billion, while Trump’s financial disclosure showed $636 million in royalties tied to it.
Other Crypto Bills
AB 2409 was one of 11 bills Newsom signed on corruption and consumer protection. Another, SB 1208 by state Sen. Tim Grayson, expands California’s money laundering crime to cover transactions made with digital assets, until Jan. 1, 2032.
It also lets police and prosecutors get warrants to seize crypto linked to money laundering or to theft, fraud, extortion and other listed crimes, with seized assets going to victims first and any remainder eventually moving to the state’s Restitution Fund.
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