Overview
- Governor Gavin Newsom signed AB 2409 on Sunday, Sept. 27, making it illegal for covered state and local officials to issue or promote memecoins.
- The law is civilly enforced: the California attorney general, district attorneys, city attorneys and county counsel may seek court injunctions and disgorgement of profits.
- Starting January 1, 2027, digital-asset platforms serving California residents must refuse listings of memecoins that were issued on or after that date by or in partnership with covered officials, while existing tokens issued before 2027 are not automatically delisted.
- AB 2409 applies broadly to elected and appointed state and local officials and to a narrower group of public employees with contracting or procurement authority, which will force platforms to develop provenance tests to determine who actually issued or benefits from a token.
- Newsom signed companion SB 1208 to extend money-laundering and seizure procedures to digital assets, aiming to help victims recover funds and setting a state-level precedent that could shape platform compliance, prosecutions, and future litigation over attribution.