Newsom Slams Trump, Signs Bill Banning Public Officials from Launching Memecoins

California Governor Gavin Newsom has signed a bill into law that prohibits public officials from launching memecoins, a type of cryptocurrency often associated with hype and speculation. The ban, which applies to state public officials, also extends to crypto service providers offering California residents the sale of any memecoin launched in association with federal, state or local public officials.

The bill, known as California Assembly Bill 2409, takes effect on January 1, 2027. It was signed into law after Newsom targeted President Donald Trump, who launched the 'Official Trump' memecoin days before taking office in 2025.

Federal financial disclosures released earlier this year showed that Trump earned $635 million in royalties from the crypto asset, which has declined by more than 97% since its peak. At one point, nearly 1 million investors had lost a collective $3.81 billion on the 'Official Trump' memecoin.