On September 27, Governor Gavin Newsom enacted Assembly Bill (AB) 2409, prohibiting public officials in California from creating meme coins.
Furthermore, the legislation blocks cryptocurrency platforms from selling newly minted meme coins associated with public figures to state residents. The governor’s administration framed the legislative package as a direct counterpoint to President Donald Trump’s digital token.
Who AB 2409 Puts Off-Limits
The measure was introduced in February by Democratic Assemblymember Avelino Valencia of Anaheim. The Senate advanced it with a 40-0 vote in August, followed by a 78-0 final approval in the Assembly.
Elected and appointed officers at both state and local levels—including advisory board members and lawmakers—are covered by the prohibition. It also applies to public employees who hold authority over contracts and bids.
A separate restriction takes effect for platforms on January 1, 2027, barring them from offering Californians any new meme coins linked to federal, state, or local officials.
According to an analysis by the Senate Judiciary Committee, this effective date permits older tokens like Official Trump (TRUMP) to remain available on exchanges. Consequently, early investors retain the ability to sell if a price increase allows them to claw back losses.
Enforcement provisions allow the Attorney General to pursue injunctions and disgorgement. Additionally, county counsel, district attorneys, and city attorneys are authorized to enforce the restrictions on officials.
During the announcement, Newsom explicitly connected the legislation to 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,” he said.
From the White House to Bangui
The California ban arrives in the wake of several meme coins introduced or endorsed by national politicians and a former mayor, each of which suffered steep declines after launch.
Trump introduced the TRUMP token in January 2025, just three days ahead of his second inauguration. Newsom’s office highlighted a July report from The New York Times concerning the cryptocurrency.
That investigation revealed that nearly one million individuals purchased the asset and subsequently endured losses exceeding $3 billion, while Trump himself generated roughly $636 million in profit. Data from BeInCrypto Markets showed TRUMP trading at $2.09, marking a 97.2% drop from its all-time high.
In a similar move, Central African Republic President Faustin-Archange Touadéra rolled out the Central African Republic Meme (CAR) in February 2025 as an initiative to foster unity and boost national visibility. Market statistics subsequently indicated the token had plummeted 99% from its peak value.
Former New York City Mayor Eric Adams debuted the NYC Token (NYC) at Times Square in January 2026. The asset approached a valuation of $600 million prior to an 80% crash.
President Javier Milei of Argentina faced comparable scrutiny in February 2025 following his endorsement of the LIBRA token, which suffered a rapid collapse soon afterward.
Meme Coins Join California’s Growing List of Off-Limits Bets
While AB 2409 does not apply retroactively to those earlier digital assets, its exchange listing restrictions do encompass federal officials. The statute builds upon prior ethics directives enacted by Newsom’s administration.
State officials in California are already mandated to disclose digital asset holdings. Furthermore, Newsom implemented a rule in March barring appointees within the Governor’s Office from leveraging nonpublic data for financial gain on prediction markets.
Federal lawmakers in Washington have pursued parallel measures; the US Senate passed a resolution in April prohibiting senators from participating in prediction market trading.
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