California Blocks Officials from Issuing Memecoins Amid Trump Token Controversy

California Governor Gavin Newsom has signed a new law banning officials from issuing memecoins, citing the example of President Donald Trump's token that generated $636 million in proceeds for him while buyers lost a combined $3.81 billion.

The legislation, Assembly Bill 2409, prohibits California state and local public officers and certain employees from issuing memecoins starting January 1, 2027. It also bars crypto platforms from making these coins available for sale or purchase by Californians if they are offered by or in partnership with a federal official or a state or local public officer.

The law does not apply to existing tokens like Trump's, but new memecoins issued after January 1, 2027, will be subject to the restrictions. Newsom framed the measure as a safeguard against officials profiting from their positions and criticized President Trump's token.