Digital assets: meme coins.

Removed all prior amendment history lines (dates from April through August 2026) and replaced with passage dates showing both chambers approved the bill on August 26, 2026.

Added signature blocks for the Chief Clerk of the Assembly, Secretary of the Senate, and Governor's receipt/approval lines, which are standard for enrolled bills ready for gubernatorial action.

Removed line numbers, page headers, and internal pagination from the statutory text; reformatted the legislative counsel's digest to remove 'as amended' after the author's name.

The prohibition on digital asset service providers was changed from banning listing of meme coins that 'contain the likeness or image of' a public official to banning those that 'are offered by, or in partnership with' a federal public official or state or local public officer. This narrows the trigger from any use of someone's image to requiring an active offering or partnership relationship.

A new definition for 'federal public official' was added, covering both federal elected or appointed officers and members of federal governmental boards, commissions, committees, or other bodies (including advisory-only bodies).

The 'meme coin' definition was expanded to add 'public figures,' 'fictional characters,' and 'animal cultural phenomenon' as qualifying associations, changed 'trends' to 'social trends,' added the phrase 'is marketed or recognized primarily based on its association with,' and added a new limiting clause requiring that the coin's value be derived primarily from public interest, speculation, or community engagement.

The definition of 'meme coin' was expanded from being inspired by 'internet memes, characters, current events, or trends' to also include 'shared humor, celebrities, noteworthy people or events,' broadening the range of coins covered.

The separate definition of 'digital asset exchange' (an online marketplace or platform where users can buy, sell, or swap digital assets) was removed entirely.

The trigger for the digital asset service provider prohibition changed from a meme coin that 'contains the likeness or image of' a federal public official or state or local public officer to one that 'is offered by, or in partnership with' such an official. This narrows the scope from any use of someone's image to requiring direct involvement or partnership.

The separate prohibition on businesses that operate a digital asset exchange listing meme coins containing the likeness or image of a public official was removed. This is now subsumed under the broader 'digital asset service provider' provision.

Minor wording changes to the enforcement provision for district attorneys, city attorneys, and county counsel: removed the word 'also' before 'bring a civil action' and removed 'to' before 'include a claim for disgorgement.'

A new definition of 'digital asset service provider' is added, incorporating the federal definition from Section 5901 of Title 12 of the United States Code. This expands the types of entities covered by the bill beyond just digital asset exchanges.

A new prohibition (subdivision (b), second instance) bars a digital asset service provider from listing for sale on behalf of, or for purchase by, a California resident any meme coin issued on or after January 1, 2027 that contains the likeness or image of a federal public official or a state or local public officer. This is distinct from and in addition to the existing ban on digital asset exchanges.

The new digital asset service provider prohibition applies only to meme coins issued on or after January 1, 2027, creating a specific effective date that did not exist in the Assembly version.

Enforcement language was consolidated and clarified. The drafting error 'shall may be enforced' was corrected to 'may be enforced.' The digest now states that the Attorney General, a district attorney, city attorney, or county counsel may all enforce these prohibitions by filing a civil action for injunctive relief, with the Attorney General additionally authorized to include a claim for disgorgement.

Changed from 'shall be enforced through a civil action brought by the Attorney General' to 'may be enforced through a civil action brought by the Attorney General,' shifting AG enforcement from mandatory to discretionary.

Corrected duplicated word 'district attorney attorney' to 'district attorney' in both the bill summary and operative text of Section 7599.211(c)(2).

Chapter title capitalization corrected from 'Prohibited digital financial transactions' to 'Prohibited Digital Financial Transactions.'

The prohibition on public employees was narrowed. The prior version used the broad term 'employee' (any state or local government employee), while the amended version uses the defined term 'public employee,' which is limited to an employee who has decisionmaking authority over bids and contracts for that entity.

Enforcement of the prohibition on digital asset exchanges was expanded. Previously only a district attorney could bring a civil action; now a district attorney, city attorney, or county counsel may all bring such an action with the same rights to seek injunctive relief and disgorgement.

The bill was restructured from two separate sections (Section 1098.5 in the Government Code plus Chapter 37) into a single consolidated chapter (Chapter 37, Sections 7599.210-7599.211). The standalone Section 1098.5 was eliminated and its substance folded into the unified chapter.

The chapter title was changed from 'Prohibited digital financial transactions' to 'Digital Financial Transactions,' removing the word 'Prohibited.'

Adds an entirely new Chapter 37 (Sections 7599.210-7599.211) to Division 7 of Title 1 of the Government Code, creating a parallel statutory framework for 'Prohibited digital financial transactions' alongside the original Section 1098.5.

Adds a new definition of 'public employee' as an employee of a state or local government entity who has decisionmaking authority over bids and contracts for that entity, expanding the class of covered persons beyond just public officers.

Prohibits any business operating a digital asset exchange from listing a meme coin for sale on behalf of, or for purchase by, a California resident if the meme coin contains the likeness or image of a federal public official or a state or local public officer. This is an entirely new prohibition targeting exchanges rather than just the individuals issuing coins.

Adds a definition of 'digital asset exchange' as an online marketplace or platform where users can buy, sell, or swap digital assets.

Authorizes a district attorney to bring a civil action to enforce the prohibition on public officers and employees issuing meme coins, with the same rights as the Attorney General to seek injunctive relief and disgorgement. Previously only the Attorney General could enforce.

Adds a new Section 1 containing legislative findings and declarations stating that public officials must not use their authority for private financial gain, that issuing financial instruments undermines public confidence and creates opportunities for conflicts of interest and corrupt foreign influence, and that public office is a public trust.