California Governor Gavin Newsom has signed a law that stops state and local public officials from issuing memecoins. Cointelegraph reported the signing on Sep 28, 2026. When he signed it, Newsom criticized US President Donald Trump's crypto ventures.
The law also covers crypto companies. It limits their ability to offer certain memecoins linked to public officials to people living in California. The rules apply to tokens issued from January. The report as provided does not give the exact day or year.
The ban is on state and local officials in California. The report does not say whether the law affects any token connected to Trump. It also leaves out which memecoins count under the rule for companies, what the penalties are, and how the state will enforce it.
For anyone already holding a perpetual position, nothing changes directly. The report does not name Bitget, Bybit, MEXC, OKX or any perpetual contract. It says nothing about funding rates, fees or liquidity. It also does not say whether the limit on offering these memecoins applies to derivatives or only to the tokens themselves. On what is known so far, the cost of holding a perp is unchanged.
Source: cointelegraph — Newsom signs California ban on public officials issuing memecoins