California Governor Gavin Newsom signed a law barring public officials from issuing meme coins. The government is adding new restrictions on cryptocurrency linked to public figures. The law, Assembly Bill 2409, was signed on September 27 along with 10 other measures covering consumer protection, crypto fraud, money laundering and online privacy.
The measure also prevents companies from listing a meme coin that uses the likeness or image of a public official, according to Newsom’s office. The state defines meme coins as cryptocurrencies built around an internet joke, celebrity or trend rather than a specific use case.
Newsom’s office announced the law under the headline ‘THE OPPOSITE OF $TRUMP,’ directly linking the legislation to President Donald Trump’s $TRUMP token. The law does not clearly establish whether existing tokens such as $TRUMP are covered by the new restrictions. The CryptoNews report also noted that the question remains unresolved.
“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 launched the $TRUMP token three days before his January 2025 inauguration. Its price climbed from below USD 1 to USD 75 within a short period before falling sharply.
California’s latest legislation also addresses cryptocurrency-related fraud. One measure creates guidelines for returning money to victims of crypto scams and fraud. Another measure establishes a legal process for seizing cryptocurrency linked to transnational criminal networks. The package also includes measures covering ticket sales, restaurant reservations and consumer privacy.
The CryptoNews report cited Nansen data showing that 988,905 buyers lost a combined USD 3.81 billion on the $TRUMP token. It also reported that Trump’s financial disclosure listed USD 636 million in royalties from the token. The new California law places public officials and meme-coin issuers under tighter state-level restrictions. Its effect on existing tokens will depend on how the new rules are applied.
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