California Gov. Gavin Newsom has signed AB 2409, a new law restricting state public officials from launching memecoins as part of a broader package addressing corruption and consumer protection.
The legislation bars public officials from issuing cryptocurrencies tied primarily to a well-known person, internet joke or viral trend rather than a specific practical purpose.
Newsom signed the measure Sunday along with 10 other bills. The package includes provisions for reimbursing victims of cryptocurrency scams and establishes a legal process for seizing digital assets connected to transnational criminal organizations.
California Links Law to $TRUMP
Newsom’s office announced the legislation with the headline “THE OPPOSITE OF TRUMP,” drawing a direct comparison between California’s new restrictions and Trump’s involvement with the $TRUMP memecoin.
The announcement accused the Trump administration of corruption and self-dealing and cited the president’s cryptocurrency project 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 had not immediately responded to CoinDesk’s request for comment.
The new law does not specify whether its restrictions apply to memecoins that were already issued before the legislation was signed, including $TRUMP.
$TRUMP Reached $14B Market Cap
Trump launched the $TRUMP token three days before his inauguration in early 2025. Its price surged from below $1 to around $75 within roughly one to two days, lifting its market capitalization to about $14 billion.
The token subsequently suffered a steep decline, leaving many smaller holders with losses.
According to data from Nansen, 988,905 buyers lost a combined $3.81 billion. Trump’s financial disclosure reports $636 million in royalties from the token, while entities affiliated with the Trump Organization hold approximately 80% of its supply.
The token was trading at around $2.03 at the time of writing.
Newsom’s second and final term as California governor ends in January. He is widely considered a potential candidate for the 2028 presidential election.
