California Governor Gavin Newsom has signed legislation prohibiting state public officials from issuing memecoins, cryptocurrencies that often leverage pop culture or viral trends without a substantive use case.
The bill, AB 2409, was part of a broader package aimed at enhancing corruption prevention and consumer safeguards. It includes measures to facilitate compensation for victims of cryptocurrency scams and to establish mechanisms for seizing digital assets linked to transnational criminal activities.
In announcing the signing, Newsom’s office starkly contrasted the move with former President Donald Trump’s involvement in memecoins, labeling it “The Opposite of Trump.” The statement accused the Trump administration of corruption and self-serving actions, notably through the $TRUMP memecoin.
“While the schemes associated with Donald Trump continue to impact American families negatively, California is striving to build an economy that serves the public interest rather than the elite. No official should exploit their position for personal gain, and we are implementing robust protections to prevent such occurrences in our state,” Newsom stated in the press release.
Efforts to obtain a comment from Trump’s office were not immediately successful.
It remains ambiguous whether the prohibition extends to pre-existing memecoins, such as the $TRUMP token.
