California bans public officials from issuing meme coins and expands crypto AML laws
CIE News ·
California enacted AB 2409 and SB 1208, barring public officials from launching meme coins and enabling authorities to seize digital assets tied to illicit activities starting January 1, 2027.
California Governor Gavin Newsom signed Assembly Bill 2409 and Senate Bill 1208 into law on September 27 and September 28, 2026. Under AB 2409, authored by Assemblymember Avelino Valencia, California state and local public officials and certain government employees are prohibited from issuing meme coins. The measure also bans crypto platforms from offering California residents any tokens issued on or after January 1, 2027, that involve partnerships with public officers or feature their likeness.
Senate Bill 1208 broadens the state's money laundering statutory framework to include qualifying digital asset transactions. The legislation equips law enforcement with legal powers to obtain warrants to freeze, seize, and forfeit cryptocurrency linked to fraudulent or criminal networks, prioritizing restitution for affected victims. Unclaimed forfeited funds will be routed into California's Restitution Fund.
Both regulatory measures will take effect on January 1, 2027. AB 2409 provides civil enforcement jurisdiction to the California Attorney General and local prosecutors to halt non-compliant operations and compel the surrender of unlawful proceeds.