California Governor Gavin Newsom has enacted a new law that prohibits state officials from creating or issuing memecoins as part of a broader anti-corruption initiative involving 11 legislative measures. This decision responds directly to the financial repercussions stemming from President Donald Trump's $TRUMP token, which has left many investors in the red.
On Sunday, Newsom signed Assembly Bill 2409 into law, which specifically targets the issuance of memecoins—cryptocurrencies often based on internet humor and lacking a solid utility—by public officials. This legislation is coupled with efforts to enhance consumer protections, tackle cryptocurrency-related crimes, and offer compensation to victims of crypto fraud while establishing legal pathways to seize digital assets tied to organized crime.
In a statement reflecting his opposition to Trump's practices, Newsom remarked, "No official should profit off their office — and we're putting stronger protections in place to ensure it doesn't happen in our state." The announcement emphasized a commitment to safeguarding ordinary Californians from corruption.
