Newsom Signs Memecoin Ban for California Officials, Taking a Swipe at Trump

California Governor Gavin Newsom signed a measure banning public officials in the state from issuing memecoins. The governor’s office targeted Trump’s crypto activities in announcing the decision.

According to CoinDesk, Newsom signed AB 2409 on Sunday, September 27. The measure is one of 11 laws aimed at fighting corruption and protecting consumers. The package also includes rules for reimbursing victims of crypto scams and legal procedures for seizing crypto assets linked to international criminal networks.

Governor’s office sends “the exact opposite of Trump” message

Newsom’s office published the announcement under the headline “The Exact Opposite of Trump”. The governor argued that public officials should not use their office for personal gain, accusing the Trump administration of conflicts of interest and corruption. CoinDesk reported that Trump’s office had not yet responded to its request for comment on the story.

At the center of the political debate is the TRUMP token, which Trump launched three days before taking office in 2025. According to Nansen data cited in the report, approximately 989,000 buyers lost a total of $3.81 billion. Trump’s financial disclosure, meanwhile, reported $636 million in royalty income from the token. These figures describe the token’s history, not losses resulting from the new law.

Not a general memecoin ban

The measure, as described in the report, applies to California public officials issuing memecoins. It does not amount to a general ban on all investors buying or selling memecoins.

The source does not explain how existing tokens will be treated or when the law takes effect. Therefore, the signing does not mean that the ban has begun to apply immediately or that the TRUMP token has been banned under this measure.