California Outlaws Meme Coin Issuance by Public Officials

The statute restricts both elected and appointed officials, as well as government employees with decision-making power over contracts, from creating tokens available for public purchase or exchange. Starting in 2027, digital asset platforms serving California residents will also be prohibited from listing meme coins issued by, or in partnership with, these officials. Enforcement falls to the state attorney general, district attorneys, and city counsel, who are empowered to seek court-ordered injunctions and the disgorgement of profits.

Newsom explicitly connected the measure to concerns over political figures profiting from speculative assets, specifically citing the business dealings of President Donald Trump. While the White House has denied conflicts of interest, the governor’s office highlighted estimates suggesting significant losses for retail investors in tokens associated with the president. Alongside this ban, Newsom signed SB 1208, which expands state money laundering statutes to include digital assets, granting law enforcement the authority to seize crypto holdings involved in criminal activity through 2032.