California Governor Signs Bill Restricting Memecoins Tied to Public Officials

VERA Brief

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California has enacted a law prohibiting public officials from issuing memecoins and restricting crypto firms from offering them to state residents. This legislation, effective from January 1, 2027, aims to prevent the creation of tokens linked to public officeholders.

Key facts

• California Governor Gavin Newsom signed legislation restricting memecoins tied to public officials.
• The law bans public officials from issuing memecoins.
• Cryptocurrency companies are restricted from offering certain memecoins linked to public officials to California residents.
• The legislation takes effect for memecoins issued from January 1, 2027.
• The aim is to prevent tokens perceived as endorsements or affiliations with public officeholders.