California Gov. Gavin Newsom bans public officials from launching memecoins, takes aim at Trump

California Governor Gavin Newsom signed legislation barring the state's public officials from issuing memecoins, framing the move as a direct contrast to President Donald Trump's memecoin project.

On Sunday, Newsom signed Assembly Bill 2409, which prohibits California public officials from launching memecoins and restricts companies from listing coins that use an official’s likeness or image. 

In a statement, Newsom used the legislation to attack Trump by name. 

“While the scam that is Donald Trump continues to hurt American families, California is fighting to make our economy work for people, not the powerful,” Newsom said. “No official should profit off their office — and we’re putting stronger protections in place to ensure it doesn’t happen in our state.”

Trump launched his own memecoin in 2025 to much anticipation but it crashed soon after a brief spike following the launch. Newsom claimed that nearly one million investors lost more than $3 billion while the president made about $636 million. 

The U.S. President's crypto businesses became a central obstacle to the Digital Asset Clarity Act. While Trump denied any conflict of interest, Democrats pointed out over $1.4 billion in crypto-related income in 2025, which came from the TRUMP memecoin and World Liberty Financial. 

Democrats refused to advance the Clarity Act without stronger ethics limits on officials who make profit from digital asset-related matters that they regulate. While Trump agreed to additional ethics limits ahead of the September vote, the Senate blocked the bill 49-50 on Sept. 15.

Legislative package

Newsom also signed several other pieces of legislation focused on crypto crime and consumer protection measures. 

He signed Senate Bill 1208, which addresses money laundering involving digital assets and is intended to set clearer rules for restitution when investors lose money in crypto scams. Another bill aims to protect crypto users in California by establishing a clear legal framework for seizing crypto assets from transnational criminal networks.

California's latest legislative developments on crypto expand on previous efforts Newsom has made since 2019, such as requiring public officials to disclose crypto holdings that could create conflicts of interest.