California Gov. Gavin Newsom has signed legislation barring state and local public officials from issuing meme coins.
The bill, which specifically prohibits politician-linked tokens, passed the California Senate 40-0 and the Assembly 78-0 before reaching Newsom’s desk.
A California “public officer” will not be able to issue a meme coin from now on. That definition covers state and local elected and appointed officials, members of the Legislature, and members of government boards, commissions, and committees, including bodies with only advisory powers.
Defining what a meme coin is is pretty challenging, and the bill applies a rather broad definition. It covers digital assets associated with internet memes, public figures, celebrities, fictional characters, current events, online humor, and so on.
Notably, digital asset service providers will be banned from offering California residents meme coins issued on or after Jan. 1, 2027.
It is important to stress that tokens such as Dogecoin are not outlawed, so this is not a statewide meme coin ban.
Why California is banning officials from issuing meme coins
California lawmakers state that financial instruments issued or promoted by government officials can create conflicts of interest, opportunities for “pay-to-play” arrangements, and risks of foreign influence. Blockchain wallets can be controlled pseudonymously, which potentially creates fertile ground for corruption.
Meme coins are now extremely easy to create, and those pseudonymous crypto transactions could allow foreign actors, special interests, and so on.
No criminal enforcement
The new law provides civil rather than criminal enforcement. California’s attorney general can seek an injunction to stop violations and ask a court to order the disgorgement of potentially ill-gotten money. District attorneys, city attorneys, and county counsel can pursue violations of the prohibition on California officials and public employees issuing meme coins.
