California Gov. Gavin Newsom has signed a law barring state public officials from issuing memecoins, putting the measure at the center of a wider anti-corruption and consumer-protection package aimed at preventing officials from profiting from their public positions.
The law, AB 2409, was signed on Sunday alongside 10 other bills. Newsom’s office presented the legislation as a direct contrast with President Donald Trump’s involvement in the $TRUMP cryptocurrency, which surged soon after launch before falling sharply and leaving many smaller holders with losses.
According to CoinDesk, the California measure applies to memecoins issued by the state’s public officials. Memecoins are cryptocurrencies generally associated with a public figure, internet joke or viral trend rather than a clearly defined practical use case.
A restriction framed as an ethics measure
Newsom’s announcement described the package as “THE OPPOSITE OF TRUMP,” linking the California law to allegations of corruption and self-dealing involving the Trump administration. The governor said the legislation was intended to ensure that public office could not be used for personal financial gain.
“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 in the press release.
Trump’s office had not immediately responded to CoinDesk’s request for comment at the time of the report.
Newsom’s action is part of a broader package rather than a standalone cryptocurrency bill. The other measures address corruption and consumer protection, including rules for repaying victims of crypto scams and a legal process for seizing cryptocurrency connected to transnational criminal networks.
The law does not clearly resolve whether memecoins that already exist are covered. That leaves an open question over the status of tokens such as $TRUMP, which was launched before the California ban was signed.
The rise and fall of $TRUMP
Trump launched the $TRUMP token three days before his early 2025 inauguration. The token’s price climbed from below $1 to $75 within a day or two, taking its market capitalization to $14 billion during the initial surge.
The rally was followed by an equally rapid collapse. Data tracked by Nansen showed that 988,905 buyers lost a combined $3.81 billion. At the same time, Trump’s financial disclosure listed $636 million in royalties from the coin, while affiliates of the Trump Organization owned approximately 80% of the token supply.
That contrast between losses among buyers and reported financial benefits for Trump-related entities is central to Newsom’s criticism. The California governor has used the token as an example of the risks that can arise when political prominence and speculative digital assets overlap.
The legislation does not ban memecoins generally throughout the cryptocurrency market. Its stated restriction concerns issuance by California public officials, meaning the rule is focused on conduct connected to public office rather than on every token associated with a celebrity, meme or online trend.
Newsom is serving his second and final term as governor, which ends in January, and is widely viewed as a potential contender for the 2028 presidential race. His criticism of Trump’s token therefore also places the California measure in a wider national political context.
Current market picture
Moneyiar market data recorded on Sept. 25, 2026, at the times shown below, put OFFICIAL TRUMP (TRUMP) at $2.0852130415, down 1.03% over 24 hours and 0.9% over seven days, as of 22:03 +03:30.
Other assets in the Moneyiar data showed mixed performance:
- Comedian (BAN) was priced at $0.0680565597, up 4.16% in 24 hours and 0.14% over seven days, as of 22:03 +03:30.
- Espresso (ESP) stood at $0.0965362814, down 0.92% in 24 hours but up 8.62% over seven days, as of 22:04 +03:30.
- Memecoin (MEME) traded at $0.0006341584, up 1.22% in 24 hours and 11.93% over seven days, as of 22:03 +03:30.
These figures show the prices and percentage movements captured by Moneyiar at those specific times; they do not determine how California’s new law will be interpreted or enforced. The immediate legal uncertainty remains whether the ban has any effect on tokens issued before the legislation was signed.
