California Governor Gavin Newsom signed AB 2409, a law that prohibits the state’s public officials from issuing memecoins, as part of an 11-bill package dealing with corruption, consumer protection and crypto-related crime.
Newsom cast the move as a direct contrast with President Donald Trump. His office titled the announcement “THE OPPOSITE OF TRUMP” and accused the Trump administration of corruption and self-dealing, including through the viral $TRUMP memecoin.
AB 2409 joins a broader package of crypto and anti-corruption bills
According to the report, AB 2409 bars California public officials from issuing memecoins, described in the article as cryptocurrencies tied to a famous person, an internet joke or a viral trend rather than a specific use case.
Newsom signed the measure on Sunday alongside 10 other bills addressing corruption and consumer protection. Other measures in the package set rules for repaying victims of crypto scams and create a legal process for seizing crypto tied to transnational criminal networks.
Newsom’s office explicitly linked the law to Trump
In the press release, Newsom said: “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. No official should profit off their office — and we’re putting stronger protections in place to ensure it doesn’t happen in our state.”
The article says Trump has made millions from memecoins, but California politicians no longer have that option under the new law. Trump’s office did not immediately respond to CoinDesk’s request for comment.
Unclear whether existing tokens are covered
The report says it is unclear whether the ban extends to memecoins already in existence, including $TRUMP.
CoinDesk also revisits the launch and price action of the token. Trump launched $TRUMP three days before his early 2025 inauguration. The surge that followed was intense: the token climbed from under $1 to $75 within a day or two, lifting its market capitalization to $14 billion. It then fell just as quickly, leaving small holders with major losses.
Data tracked by Nansen shows that 988,905 buyers lost a combined $3.81 billion. Trump’s financial disclosure, meanwhile, lists $636 million in royalties from the coin. Affiliates of the Trump Organization own about 80% of the token supply.
As of this writing, $TRUMP was trading at $2.03.
Political backdrop
The article notes that Newsom’s second and final term as governor ends in January. He is widely seen as a potential contender in the 2028 U.S. presidential race.