California Bans Memecoins for Public Officials
California Governor Gavin Newsom has signed a law banning public officials in the state from issuing memecoins, or cryptocurrencies representing famous personalities, internet jokes, or viral trends. The measure, AB 2409, was part of a package of bills focused on corruption and consumer protection.
The bill aims to prevent officials from profiting off their office, as Newsom's office argued that the Trump administration has done through its own memecoin, $TRUMP. This token rose in value from under $1 to $75 within days of its launch, only to crash and cause significant losses for small investors.
The $TRUMP coin was launched by President Donald Trump just three days before his inauguration in 2025 and saw a market capitalization of $14 billion. However, it is unclear whether the new law covers existing meme tokens like $TRUMP.