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California bans public officials from issuing memecoins
California Governor Gavin Newsom has signed Assembly Bill 2409, a new law that prohibits state and local public officials from issuing memecoins. The legislation also restricts digital asset service providers from offering certain memecoins tied to federal, state, or local officials to California residents, effective January 1, 2027.
Newsom framed the decision as a measure to combat corruption and prevent officials from profiting from their public positions. In his announcement, he explicitly criticized former President Donald Trump’s involvement in the crypto market, specifically referencing the TRUMP memecoin. Newsom noted that while some investors faced significant losses, certain political figures gained substantial profits from such ventures.
In addition to AB 2409, Newsom signed Senate Bill 1208, which expands money laundering laws to include digital assets through 2032. This bill aims to strengthen the ability of law enforcement to seize digital assets linked to criminal activities and provides clearer guidelines for returning funds to fraud victims. Enforcement for the memecoin ban will be civil, allowing for injunctions and the disgorgement of profits.
Entities
Avelino Valencia · California · California State Legislature · Donald Trump · Gavin Newsom
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 18 SOURCES] The restrictions on digital asset service providers apply to tokens issued on or after January 1, 2027. coinpost.jp · bitnewsbot.com · www.nadanews.com · www.crypto-insiders.nl · crypto.news · +13 more
- [● 18 SOURCES] AB 2409 prohibits state and local public officials from issuing memecoins. coinpost.jp · bitnewsbot.com · www.nadanews.com · www.crypto-insiders.nl · crypto.news · +13 more
- [● 7 SOURCES] SB 1208 expands money laundering laws to include digital assets through 2032. coinpost.jp · www.nadanews.com · crypto.news · www.blocktempo.com · www.cryptoninjas.net · +2 more
- [● 10 SOURCES] Enforcement of AB 2409 is civil, allowing for injunctions and disgorgement of profits. coinpost.jp · www.nadanews.com · crypto.news · journalducoin.com · cryptobriefing.com · +5 more
- [● 18 SOURCES] Governor Gavin Newsom signed Assembly Bill 2409 into law. coinpost.jp · bitnewsbot.com · www.nadanews.com · www.crypto-insiders.nl · crypto.news · +13 more
- [● 18 SOURCES] The law prohibits digital asset service providers from offering certain official-linked memecoins to California residents. coinpost.jp · bitnewsbot.com · www.nadanews.com · www.crypto-insiders.nl · crypto.news · +13 more