California has forwarded bill AB 2409 to the governor, which prohibits state officials and government agency employees from issuing memecoins. The document, passed by state lawmakers in August 2026, will also restrict crypto services from listing such tokens for California residents starting January 1, 2027.
What the Bill Stipulates
The restrictions of the legislative initiative apply to representatives of state and local authorities, as well as members of state boards, commissions, and committees.
Starting January 1, 2027, digital service providers will also be prohibited from listing for sale or purchase to California residents any memecoins issued after that date by federal officials or representatives of state or local authorities, as well as tokens created by them in partnership with other individuals.
The document states that officials should not use the powers granted to them for personal financial gain. Legislators also believe that the issuance or promotion of financial instruments by public officials could undermine trust in government, create conflicts of interest, and opportunities for schemes such as pay-to-play.
At the same time, the bill defines a memecoin quite broadly—as a digital asset whose value or popularity is linked to internet memes, public figures, celebrities, current events, cultural phenomena, humor, or social trends, and the engagement of an online community in its purchase and trading.
Compliance with the restrictions can be monitored by the California Attorney General, district attorneys, city attorneys, and county counsels. They will have the right to go to court, including to demand a halt to the relevant activity and the return of funds obtained.
The Bill Part of Broader Pressure on Political Memecoins
California's initiative comes amid several federal attempts to limit the involvement of U.S. politicians and their families in the cryptocurrency business.
In February 2025, California Democratic Congressman Sam Liccardo was preparing the Modern Emoluments and Malfeasance Enforcement (MEME) Act. The document aimed to prohibit the U.S. President, Vice President, members of Congress, executive branch officials, and their immediate families from profiting from digital assets. The initiative emerged after the launch of the TRUMP and MELANIA memecoins.
Later, in June, Democratic Senator Adam Schiff introduced the COIN Act—a bill that would prohibit the President, Vice President, and their immediate families from creating, promoting, or sponsoring cryptocurrencies, including memecoins, NFTs, and stablecoins, while in office.
In October of last year, Congressman Ro Khanna also announced the preparation of a bill that would ban certain government employees from owning, trading, or creating cryptocurrencies. He proposed allowing such officials to only invest in diversified funds or government bonds.
