Newsom Bans Public Officials from Launching Memecoins in California

California Governor Gavin Newsom has signed legislation aimed at preventing public officials from launching memecoins, drawing direct comparisons to President Donald Trump's own failed crypto venture. In a statement, Newsom emphasized that no official should profit off their office and that California is working to make its economy more equitable.

The new law prohibits state officials from issuing memecoins and restricts companies from listing coins that use an official's likeness or image. Newsom's move comes after Trump launched his own memecoin in 2025, which crashed shortly after a brief spike following the launch.

According to Newsom, nearly one million investors lost over $3 billion while Trump made around $636 million from the TRUMP memecoin and World Liberty Financial. The California Governor has framed this as another instance of Trump's 'scam' hurting American families.