Newsom signs California bill banning state officials from launching memecoins

Newsom signed California Assembly Bill 2409 on Sunday, banning state public officials from launching memecoins. The law also prohibits crypto service providers from offering California residents memecoins launched in association with federal, state or local public officials. That restriction applies to memecoins issued on or after January 1, 2027. Newsom criticized President Donald Trump in a press release announcing the bill's signing. Newsom said Trump continued to hurt American families. Newsom said California was fighting to make the economy work for people, not the powerful. He said no official should profit from their office. He also said California was putting stronger protections in place to prevent that in the state. Trump launched the Official Trump memecoin days before he took office in 2025. Financial disclosures released earlier this year indicate Trump earned $635 million in royalties from the crypto asset. The asset is down more than 97% from its all-time highs shortly after launch. Nearly 1 million investors had lost $3.81 billion on the Trump memecoin by the end of June, according to data analytics firm Nansen shared with The New York Times.