President Donald Trump has accumulated millions via memecoins, but public servants in California no longer have that capability.
On Sunday, Governor Gavin Newsom of California approved legislation prohibiting state government officials from releasing memecoins, defined as cryptocurrencies tied to popular figures, internet memes, or viral trends rather than practical utility.
This regulation, designated as AB 2409, received his signature alongside 10 additional bills focused on consumer safeguarding and anti-corruption. Other pieces of legislation establish guidelines for reimbursing victims of cryptocurrency fraud and construct a legal framework to confiscate digital assets from international criminal syndicates.
The press release from Newsom’s administration was headlined “THE OPPOSITE OF TRUMP,” criticizing the Trump administration for self-enrichment and corruption, specifically highlighting the viral $TRUMP memecoin.
“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 stated in the official release.
The office of President Trump did not instantly reply to inquiries for commentary from CoinDesk.
It remains uncertain whether this prohibition applies to pre-existing meme tokens, such as $TRUMP.
The President rolled out $TRUMP three days prior to taking office in early 2025, sparking a frenzy that sent its valuation surging from below $1 to $75 within a day or two, elevating its market cap to $14 billion. The asset subsequently experienced a rapid collapse, inflicting severe losses upon retail investors.
Analytics from Nansen indicate that 988,905 purchasers suffered a cumulative deficit of $3.81 billion. Meanwhile, financial filings for Trump show $636 million in incoming royalties derived from the asset. Affiliates linked to the Trump Organization maintain control over approximately 80% of the total token supply.
At the time of publication, the token changes hands at $2.03.
Newsom, whose second and final term concludes in January, is widely regarded as a potential candidate for the presidency in 2028.
Originally published at https://www.coindesk.com/markets/2026/09/28/california-s-newsom-signs-memecoin-ban-and-calls-it-the-opposite-of-trump.
