Newsom Bans Official Meme Coins Citing Trump Coin Fiasco

California Governor Gavin Newsom has signed a package of bills that bars public officials from issuing official meme coins. The move targets Assembly Bill 2409, which was introduced by Assemblymember Avelino Valencia (D-Anaheim), and prohibits companies from listing any meme coin that uses the likeness or image of a public official.

The governor's office described meme coins as cryptocurrencies built around an internet joke, celebrity, or trend, with prices driven mostly by hype and speculation rather than an underlying business. Newsom pointed to President Donald Trump's meme coin, launched in 2025, which reportedly lost nearly $3 billion for its buyers while generating a profit of roughly $636 million for the former president.

The new rules also aim to combat crypto fraud and money laundering, including Senate Bill 1208 by Senator Tim Grayson (D-Concord), which covers money laundering involving digital assets. The package sets out guidelines for restitution to victims of crypto scams and establishes a clear legal process for seizing crypto assets from transnational criminal networks.