California Bans Public Officials From Launching Memecoins in New Law
Newsom signs bill blocking official memecoin projects
California Governor Gavin Newsom signed legislation on Sunday that bans state public officials from creating or launching memecoins. The new law, known as Assembly Bill 2409, also prevents companies from listing digital tokens that use the likeness or image of a public official.
The move comes as a direct response to recent controversies involving federal leaders and cryptocurrency projects. Newsom framed the legislation as a measure to stop officials from profiting from their positions.
Direct criticism of federal leadership
In a statement regarding the signing, Newsom specifically named President Donald Trump. He cited Trump's own memecoin project, which launched in 2025, as an example of the issues the bill aims to prevent. According to Newsom's statement, nearly one million investors lost over $3 billion following the launch, while the president reportedly earned about $636 million.
The governor stated that the law ensures no official in California can profit from their office through such digital assets.
Additional consumer protection measures
Beyond the memecoin ban, Newsom signed other bills focused on crypto crime and investor safety. Senate Bill 1208 addresses money laundering involving digital assets and establishes clearer rules for restitution when investors lose money in scams.
Another piece of legislation creates a legal framework for seizing crypto assets held by transnational criminal networks. These actions build on previous efforts starting in 2019 that required officials to disclose crypto holdings to avoid conflicts of interest.
Context on federal crypto debates
The source material notes that President Trump's crypto businesses were a major point of contention during the debate over the Digital Asset Clarity Act in the U.S. Senate. Democrats argued that the act could not pass without stricter ethics limits on officials who regulate digital assets while holding them.
Although Trump agreed to some additional ethics limits, the Senate voted 49-50 against advancing the bill on September 15.
What is confirmed
- Assembly Bill 2409 was signed into law on September 28, 2026.
- The law prohibits California public officials from launching memecoins.
- The law restricts listings of coins using an official's image.
- Senate Bill 1208 was also signed to address crypto-related money laundering and restitution.
Remaining uncertainties
While the source provides specific figures regarding losses and earnings related to the Trump memecoin, these numbers are presented as claims made by Governor Newsom in his statement. The text does not provide independent verification of these exact financial totals.
Next steps for enforcement
The article does not specify a timeline for when these laws take effect or how the state will enforce the restrictions on coin listings.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.