AB 2409, authored by Anaheim Assemblymember Avelino Valencia, is part of a broader package on digital assets and consumer protection.
California has enacted a new law prohibiting state and local public officials from issuing meme coins and restricting companies from listing meme coins that use the likeness or image of a public official.
Anaheim lawmaker authored the measure
Assembly Bill 2409 was authored by Assemblymember Avelino Valencia, a Democrat whose district includes Anaheim. Gov. Gavin Newsom signed the bill Sunday as part of a broader package dealing with digital assets, consumer protections and government ethics.
Meme coins are cryptocurrencies often tied to a celebrity, political figure, internet joke or trend and can be driven heavily by speculation rather than an underlying business.
Part of a larger consumer package
The governor also signed legislation addressing crypto fraud and money laundering, ticket refunds, reservation resale practices and consumer data privacy.
The governor’s office framed AB 2409 as an anti-corruption measure intended to prevent public officials from using their office or image to promote speculative digital assets. Critics of government restrictions on digital assets generally argue that regulation should be narrowly tailored so it does not unnecessarily limit legitimate market activity.
Source: Governor of California.
