Newsom Backs California Memecoin Ban, Says Policy Is ‘The Opposite of Trump’

California Gov. Gavin Newsom has signed AB 2409 into law, preventing state public officials from creating or issuing memecoins under a new set of anti-corruption and consumer-protection measures.

The law targets cryptocurrencies whose primary appeal comes from a famous personality, internet meme or viral trend rather than a defined utility or use case.

AB 2409 was among 11 bills Newsom signed Sunday. The broader legislative package also includes provisions aimed at compensating victims of crypto scams and establishing a legal route for authorities to seize cryptocurrency associated with transnational criminal networks.

Newsom Points to Trump’s $TRUMP Token

Newsom’s office announced the legislation with the headline “THE OPPOSITE OF TRUMP,” explicitly connecting the new restrictions to President Donald Trump’s $TRUMP memecoin.

The announcement criticized what it described as corruption and self-dealing within the Trump administration and pointed to the president’s memecoin as an example.

“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,” Newsom said.

Trump’s office had not immediately provided a response to CoinDesk’s request for comment.

AB 2409 does not clearly state whether its restrictions extend to memecoins that were already circulating before the law was signed, including $TRUMP.

Trump’s Token Climbed to $75

Trump introduced $TRUMP three days before his inauguration in early 2025, triggering a rapid surge in its market value. The token rose from below $1 to approximately $75 within one or two days, briefly taking its market capitalization to around $14 billion.

The rally was followed by a sharp sell-off that resulted in substantial losses for smaller investors.

Nansen data indicates that 988,905 buyers lost a combined $3.81 billion. Trump’s financial disclosure reports $636 million in royalties from the token, while affiliates of the Trump Organization hold approximately 80% of its supply.

The token was trading near $2.03 at the time of writing.

Newsom’s second and final term as California governor ends in January. He is widely regarded as a potential 2028 presidential contender.