California Blocks Public Officials From Issuing Memecoins Amid Trump Criticism

California Governor Gavin Newsom has signed a bill that prohibits state public officials from launching memecoins, targeting President Donald Trump's 'Official Trump' cryptocurrency. The bill, California Assembly Bill 2409, also prevents crypto service providers from offering California residents the sale of any memecoin associated with federal, state, or local public officials, starting January 1, 2027.

Newsom, a potential Democratic presidential candidate in 2028, criticized Trump's memecoin in a press release, stating that 'No official should profit off their office, and we're putting stronger protections in place to ensure it doesn't happen in our state.'

The Trump memecoin was launched days before his presidency in 2025 and had lost over 97% of its value by the end of June. According to Nansen, nearly 1 million investors had lost $3.81 billion on the cryptocurrency.