Law AB 2409 restricts the circulation of tokens associated with government figures
California Governor Gavin Newsom has signed law AB 2409, which prohibits state and local officials from creating their own memecoins. Restrictions for crypto platforms regarding the offering of such assets will take effect on January 1, 2027. This was reported by Minfin, according to the portal PromPolitInform.
The adopted regulatory act aims to prevent public figures from using their official position for financial gain through crypto assets. State Governor Gavin Newsom positions this initiative as a significant anti-corruption step that should clearly delineate state activities from private investment projects.
Digital asset circulation regulation
According to the law’s text, the ban applies exclusively to future memecoins directly linked to the names or activities of officials. Existing tokens are not subject to mandatory removal from trading platforms, and new projects unrelated to government representatives continue to operate normally.
Consequently, the regulation does not create a total ban on the memecoin market or general cryptocurrency circulation in the state. Popular assets, such as Dogecoin, are not covered by AB 2409 as they are not associated with official government figures.
Political implications of the initiative
Experts note the pronounced political nature of the decision. During the official announcement of the document’s signing, Gavin Newsom mentioned Donald Trump’s cryptocurrency projects, highlighting the confrontation between American political camps. The legislative changes create a barrier specifically for instruments that could be used for both personal enrichment and political manipulation.
Photo: Minfin
