Finance
Digital assets: meme coins
California bars public officials and certain public employees from issuing meme coins and restricts platforms from offering official-linked meme coins to Californians.
The law aims to prevent public office from being used for private financial gain through speculative digital assets and to protect public confidence in government.
What the law does
- Prohibits state and local public officers, including legislators and appointed officials, from issuing meme coins.
- Prohibits public employees with decisionmaking authority over government bids and contracts from issuing meme coins.
- Bars digital asset service providers from listing or selling to California residents meme coins issued on or after January 1, 2027, when offered by or in partnership with a federal, state, or local public official.
- Authorizes civil enforcement seeking court orders to stop violations and recovery of improperly obtained proceeds.
Who it affects
- State and local elected and appointed public officers.
- State and local employees who make decisions on government bids and contracts.
- Digital asset service providers serving California residents.
- Federal public officials whose meme coins are offered to California residents.
Context
A meme coin is broadly defined as a digital asset valued mainly for public interest, speculation, or community engagement around memes, public figures, events, or trends.