California Gov. Gavin Newsom has approved legislation barring state public officials from issuing memecoins, adding the measure to a wider anti-corruption and consumer-protection package that he presented as a counterpoint to President Donald Trump’s $TRUMP token.
AB 2409 prohibits public officials in California from creating cryptocurrencies centered on celebrities, political figures, internet jokes or viral trends when the tokens lack a specific functional use.
Newsom signed the bill Sunday together with 10 other pieces of legislation addressing corruption and consumer protection. The package also includes measures covering compensation for victims of cryptocurrency scams and a legal framework for confiscating digital assets connected to transnational criminal organizations.
Newsom Draws Direct Contrast With Trump
Newsom’s office announced the legislation under the headline “THE OPPOSITE OF TRUMP,” accusing the Trump administration of corruption and self-dealing and pointing to the president’s $TRUMP memecoin as an example.
“While the scam that is Donald Trump continues to hurt American families, California is fighting to make our economy work for people, not the powerful. No official should profit off their office — and we’re putting stronger protections in place to ensure it doesn’t happen in our state,” Newsom said.
Trump’s office did not immediately respond to CoinDesk’s request for comment.
The legislation does not make clear whether the restrictions extend to memecoins that were launched before the law took effect, including the existing $TRUMP token.
Trump’s Memecoin Surge and Collapse
Trump launched $TRUMP three days before his early 2025 inauguration. The token rapidly climbed from less than $1 to roughly $75 within a day or two, taking its market capitalization to approximately $14 billion before an equally sharp decline.
The subsequent sell-off resulted in significant losses for smaller investors. Nansen data shows that 988,905 buyers collectively lost $3.81 billion.
Trump’s financial disclosure, meanwhile, reports $636 million in royalties from the token. Affiliates linked to the Trump Organization hold roughly 80% of the total supply.
$TRUMP was trading at approximately $2.03 at the time of writing.
Newsom is serving his second and final term as California governor, which ends in January. He is widely viewed as a potential contender for the 2028 presidential race.
