California Blocks Public Officials from Launching Meme Coins
California Governor Gavin Newsom has signed Assembly Bill (AB) 2409 into law, banning state and local officials from launching meme coins. The law also restricts crypto platforms from selling new meme coins tied to public officials in California.
The bill, introduced by Assemblymember Avelino Valencia in February, aims to prevent the misuse of political influence for personal gain through cryptocurrency. According to Newsom's office, the package is a direct response to President Donald Trump's own token, Official Trump (TRUMP), which lost over 97% of its value after launch.
Trump launched TRUMP in January 2025, just before his second inauguration. The token saw a massive loss of value, with nearly 1 million people buying it and losing more than $3 billion. Trump himself profited by roughly $636 million from the token's debut.