California Bans Memecoins for Public Officials
California Governor Gavin Newsom has signed a law that prohibits state public officials from issuing memecoins, which are cryptocurrencies tied to famous personalities or internet trends. The measure is part of an 11-bill package aimed at addressing corruption and cryptocurrency crime.
The ban specifically targets memecoins like $TRUMP, launched by President Donald Trump just before his inauguration in early 2025. The token's price skyrocketed from under $1 to $75 within a day or two, reaching a market capitalization of $14 billion before crashing and causing huge losses for small holders.
Newsom framed the measure as 'The Opposite of Trump,' accusing the Trump administration of corruption and self-dealing. The law sets rules for paying back crypto scam victims and creating a legal process to seize crypto from transnational criminal networks.