California bars state officials from launching memecoins under new law
Regulation & Gov ·
Governor Gavin Newsom signed legislation prohibiting public officials in California from issuing memecoins, packaging the measure as a direct jab at President Trump's crypto dealings.
Newsom put his signature on AB 2409 as part of a broader set of 11 bills targeting corruption, consumer protection and crypto-related crime, according to coindesk.com. The new rule stops state officeholders from creating tokens tied to their own persona, internet trends or viral moments, closing off a revenue path that some politicians have exploited elsewhere. Other bills in the package address compensating victims of crypto scams and building a legal mechanism to confiscate digital assets linked to transnational criminal organizations.
The governor's office labeled the rollout "THE OPPOSITE OF TRUMP," explicitly tying the legislation to the president's $TRUMP token episode, which theblock.co notes was central to the framing. Newsom argued that no official should be able to profit from holding office, positioning the law as evidence that California's economic policy serves ordinary residents rather than those in power.
The comparison draws on the fallout from Trump's own memecoin, launched just before his 2025 inauguration. The token's price jumped from under $1 to $75 within roughly a day, briefly pushing its market capitalization to $14 billion before collapsing. Data compiled by Nansen shows 988,905 buyers absorbed combined losses of $3.81 billion, even as Trump's financial disclosure reported $636 million in royalties tied to the coin, with Trump Organization affiliates holding about 80% of its supply. The token now trades at $2.03.
Whether California's ban would apply retroactively to tokens already circulating, such as $TRUMP, remains unaddressed in the legislation. Trump's office had not responded to a request for comment on the new law as of the reporting. Newsom, who is completing his final term as governor before it ends in January, is regarded as a possible contender for the 2028 presidential race, adding a political dimension to the timing of the signing. Seven distinct outlets have covered the story, underscoring the law's resonance beyond California's borders, though its practical enforcement mechanisms and scope against existing memecoins are still unclear.