California passes bill banning public officials from issuing meme coins

The California State Legislature has passed Assembly Bill 2409 (AB 2409), a piece of legislation designed to prevent conflicts of interest by prohibiting public officials from issuing or participating in the issuance of meme coins. The bill passed the Senate with a 40-0 vote and subsequently cleared the Assembly after the Senate's amendments were confirmed by a 78-0 vote.

If signed by the Governor, the law will take effect on January 1, 2027. Under the new regulations, digital asset service providers will be barred from offering meme coins to California residents if those coins were issued or co-issued by federal, state, or local officials. The bill defines meme coins as speculative digital assets driven by community engagement or public interest.

To ensure compliance, the legislation authorizes the Attorney General, district attorneys, city attorneys, and county counsel to enforce these prohibitions through civil actions.