Newsom Enacts Ban on Meme Coins by California Public Officials

On September 27, Governor Gavin Newsom enacted Assembly Bill (AB) 2409, which prohibits California public officials from creating meme coins.

The legislation additionally prevents cryptocurrency exchanges from offering Californians fresh meme coins associated with public officials. Newsom's administration framed the measure as a direct counterpoint to President Donald Trump's personal token.

Who AB 2409 Puts Off-Limits

Assemblymember Avelino Valencia, a Democrat representing Anaheim, first introduced the legislation in February. The Senate voted unanimously (40-0) in August, and the Assembly later passed the final version by a 78-0 margin.

The prohibition applies to elected and appointed officials at both state and local levels, including lawmakers and advisory board members. It also extends to public employees who have authority over bids and contracts.

A separate restriction takes effect on January 1, 2027, for platforms. From that date, they may not sell to California residents any new meme coins that are issued by or in conjunction with federal, state, or local officials.

Per a Senate Judiciary Committee analysis, the cutoff allows existing coins like Official Trump (TRUMP) to remain listed on exchanges. This means early purchasers can still offload their tokens if a price surge enables them to recoup some losses.

The state Attorney General has the authority to seek injunctions and disgorgement. District attorneys, city attorneys, and county counsel are also empowered to enforce the prohibition against officials.

Newsom directly tied the signing to Trump in his statement.

“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

The California ban comes after multiple meme coins were launched or endorsed by national leaders and a former mayor, with each token shedding most of its value shortly after debut.

Donald Trump introduced TRUMP in January 2025, just three days ahead of his second inauguration. Newsom's office cited a July New York Times report concerning Official Trump (TRUMP).

Approximately one million individuals purchased the token and have subsequently lost over $3 billion, while Trump personally gained roughly $636 million from it, according to the report. At press time, TRUMP was trading at $2.09, a 97.2% decline from its all-time high, based on BeInCrypto Markets data.

Separately, Central African Republic President Faustin-Archange Touadéra unveiled Central African Republic Meme (CAR) in February 2025. He described it as an experiment aimed at uniting people and boosting the nation's profile. Market figures indicate the token has fallen 99% from its peak.

Former New York City Mayor Eric Adams introduced NYC Token (NYC) in Times Square in January 2026. The token approached a $600 million market cap before plummeting roughly 80%.

Argentine President Javier Milei faced comparable attention in February 2025 after endorsing the LIBRA token, which subsequently collapsed.

Meme Coins Join California’s Growing List of Off-Limits Bets

None of these previous tokens are subject to AB 2409. Nevertheless, the law's listing restriction does apply to federal officials. The legislation builds on prior ethics measures taken by the Newsom administration.

California officials are already required to disclose their cryptocurrency holdings. In March, Newsom additionally prohibited appointees in the Governor's Office from using nonpublic information to profit in prediction markets.

The federal government has taken a similar path. In April, the U.S. Senate approved a resolution that bans senators from trading on prediction markets.