California Governor Signs Law Banning Public Officials From Issuing Memecoins

California Governor Gavin Newsom signed AB 2409 into law on Sunday, effectively barring state public officials from issuing memecoins or cryptocurrencies based on viral trends, internet jokes, or famous personalities. The legislation was part of a broader 11-bill package focused on consumer protection and anti-corruption measures.

The governor’s office characterized the new law as the opposite of the approach taken by President Donald Trump, specifically citing the $TRUMP token. Newsom stated that the measure aims to prevent officials from profiting off their positions, noting that the administration is implementing stronger protections to ensure such activity does not occur within the state.

The $TRUMP token was launched three days before the President's early 2025 inauguration. The token saw significant volatility, climbing from under $1 to $75 within a few days, which pushed its market capitalization to $14 billion before a rapid decline. Data from Nansen indicates that 988,905 buyers lost a combined $3.81 billion during the cycle.

Financial disclosures show that President Trump received $636 million in royalties from the token, with affiliates of the Trump Organization holding approximately 80% of the supply. The token is currently trading at $2.03. It remains unclear if the new California law applies to existing tokens like $TRUMP.

In addition to the memecoin ban, the legislative package includes new rules for compensating victims of crypto scams and establishes a legal framework for seizing digital assets from transnational criminal networks. The President's office did not provide a comment regarding the legislation.