California bars officials from launching memecoins amid Newsom's criticism of Trump

Newsom signed Assembly Bill 2409, which bars California public officials from launching memecoins. The law restricts companies from listing coins that use an official's likeness or image. Newsom criticized Trump by name in a statement about the law. Newsom said no official should profit from their office. Newsom said California was putting stronger protections in place. Trump launched his own memecoin in 2025. The coin crashed soon after a brief spike following its launch. Newsom claimed nearly one million investors lost more than $3 billion. Newsom claimed Trump made about $636 million. Trump's crypto businesses became a central obstacle to the Digital Asset Clarity Act. Trump denied any conflict of interest. Democrats pointed to more than $1.4 billion in crypto-related income in 2025 from the TRUMP memecoin and World Liberty Financial. Democrats refused to advance the Clarity Act without stronger ethics limits on officials who profit from digital asset matters they regulate. Trump agreed to additional ethics limits ahead of the September vote. The Senate blocked the bill 49-50 on Sept. 15. Newsom also signed several other bills focused on crypto crime and consumer protection. Senate Bill 1208 addresses money laundering involving digital assets. The bill is intended to set clearer rules for restitution when investors lose money in crypto scams. Another bill establishes a legal framework for seizing crypto assets from transnational criminal networks to protect California crypto users. California's latest crypto legislation expands on efforts Newsom has made since 2019. Those efforts include requiring public officials to disclose crypto holdings that could create conflicts of interest.