California Governor Gavin Newsom has enacted a law that forbids state government workers from creating memecoins, positioning the policy as a direct countermeasure against President Donald Trump’s cryptocurrency venture.
During Sunday proceedings, Newsom approved Assembly Bill 2409, which outlaws California government employees from issuing memecoins and prevents corporations from listing digital tokens featuring an official’s image or likeness.
Within an official announcement, Newsom leveraged the new regulation to explicitly target Trump.
Newsom stated that while the fraudulent enterprise led by Donald Trump continues to harm American households, California strives to build an economy serving regular citizens rather than the elite. He added that no leader should capitalize on their governmental position, noting that the state is implementing robust safeguards to prevent such behavior locally.
Trump introduced his personal memecoin in 2025 to high expectations, though its value plummeted following an initial surge. Newsom asserted that approximately one million participants suffered losses exceeding $3 billion, whereas the president generated around $636 million in revenue.
The cryptocurrency enterprises operated by the United States President developed into a major hurdle for the Digital Asset Clarity Act. Although Trump rejected allegations of a conflict of interest, Democratic lawmakers highlighted more than $1.4 billion in digital asset earnings throughout 2025 originating from the TRUMP token and World Liberty Financial.
Democratic representatives declined to progress the Clarity Act absent stricter ethical boundaries regarding officials profiting from blockchain assets under their jurisdiction. Even though Trump accepted extra ethical restrictions prior to the September ballot, the Senate rejected the legislation in a 49-50 vote on September 15.
Legislative package
Newsom additionally endorsed a series of alternative bills targeting cryptocurrency offenses and consumer safety safeguards.
He approved Senate Bill 1208, tackling digital asset money laundering and designed to establish precise guidelines for recovering funds when participants fall victim to crypto fraud. An additional measure seeks to safeguard cryptocurrency participants in California by creating a distinct legal structure for confiscating digital currencies belonging to international criminal rings.
California’s most recent regulatory actions regarding digital assets build upon prior initiatives introduced by Newsom starting in 2019, which mandated that government representatives report digital asset investments capable of generating conflicts of interest.
Originally published at https://www.theblock.co/news/regulation/2026-09-28-california-gov-gavin-newsom-bans-public-officials-from-launching-memecoins-takes-aim-at-trump-416970.
