On Sunday, California Governor Gavin Newsom signed AB 2409, a law prohibiting state and local officials from issuing memecoins. The legislation also bars digital asset providers from offering certain memecoins to California residents if those tokens are issued by, or in partnership with, any federal, state, or local official. These restrictions apply to tokens issued on or after January 1, 2027.

AB 2409 introduced on February 20, 2026

The bill was introduced by Assemblymember Avelino Valencia on February 20, 2026. When signing the bill, Newsom criticized U.S. President Donald Trump’s crypto projects and his launch of a memecoin in 2025, stating that officials should not profit from their positions.

Attorney General and local prosecutors may file lawsuits

The measure adds the memecoin issuance ban to the state’s Government Code and authorizes the California Attorney General, district attorneys, city attorneys, and county counsels to enforce the law through civil lawsuits.

SB 1208 expands anti-money laundering to digital assets

On the same day, Newsom signed SB 1208, which extends existing California anti-money laundering provisions to illegal digital asset transactions. The law broadly authorizes law enforcement to freeze, seize, and confiscate digital assets connected to crimes.