California Bans Officials from Meme Coin Frenzy Citing Trump's Token

California Governor Gavin Newsom has signed AB 2409 into law, making it illegal for state and local officials to issue meme coins. The bill also bars crypto platforms from listing, for California residents, any meme coin issued on or after January 1, 2027, by a federal, state, or local official.

The cutoff appears to leave out the $TRUMP token, which was launched in January 2025, although the law defines issuing broadly as making a coin available for public purchase, donation, or exchange.

Newsom's office pitched the law as a contrast with President Donald Trump and his own token. While Trump's meme coin has reportedly lost its investors over $3 billion, Newsom stated that 'no official should profit off their office' and that California is putting stronger protections in place.