California passes AB 2409 banning public officials from issuing meme coins, effective January 1, 2027, with digital asset service providers also prohibited from listing such coins.
Regulation & Gov ·
California lawmakers have passed AB 2409, legislation that prohibits public officials and public employees from issuing meme coins. The bill has advanced to the enrolled stage, where it now awaits the governor's action. Starting January 1, 2027, the law would extend restrictions to digital asset service providers, which would be barred from listing meme coins—issued on or after that date and offered by, or created in partnership with, federal, state, or local public officials—to California residents.
The measure establishes a clear prohibition on both the creation and distribution of such tokens by government actors. By targeting both issuers and platforms that list these assets, the law aims to prevent potential conflicts of interest and misuse of public office for token promotion within the state.
What remains unclear is whether the governor will sign, veto, or allow the bill to become law without signature, and how digital asset service providers will implement compliance mechanisms to identify qualifying meme coins within the specified timeframe.