TheBlock
California Gov. Gavin Newsom signed Assembly Bill 2409, barring state public officials from launching memecoins and restricting companies from listing coins that use an official’s likeness or image. Newsom framed the law as a rebuke to President Donald Trump’s memecoin, saying nearly 1 million investors lost more than $3 billion while Trump made about $636 million. Trump’s coin briefly spiked after its 2025 launch before crashing, according to the account of the project in the seed.
Why it matters
The law puts consumer protection and ethics at the center of California’s approach to digital assets. Newsom said public officials should not profit from their office. Since 2019, California has also required officials to disclose crypto holdings that could create conflicts of interest.
The move echoes a wider federal dispute over officials’ crypto businesses. Democrats cited more than $1.4 billion in crypto-related income in 2025 from the TRUMP memecoin and World Liberty Financial as they sought stronger ethics limits tied to the Digital Asset Clarity Act. Trump denied a conflict of interest. After he agreed to additional ethics limits, the Senate blocked the bill 49-50 on Sept. 15.
Market impact
Newsom also signed Senate Bill 1208, addressing money laundering involving digital assets and setting clearer rules for restitution when investors lose money in crypto scams. Another measure creates a legal framework for seizing crypto assets from transnational criminal networks.
For crypto businesses, California’s package combines restrictions on coins using officials’ likenesses with measures targeting scams and criminal proceeds. The legislation signals a sharper focus on how digital assets intersect with public office and consumer losses.
Frequently asked questions
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What does California's new law prohibit public officials from doing?
Assembly Bill 2409 bars California public officials from launching memecoins. It also restricts companies from listing coins that use an official’s likeness or image.
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What losses and earnings did Newsom cite regarding Trump's memecoin?
Newsom said nearly 1 million investors lost more than $3 billion while Trump made about $636 million.
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What role did crypto-related income play in the Digital Asset Clarity Act debate?
Democrats cited more than $1.4 billion in 2025 crypto-related income from the TRUMP memecoin and World Liberty Financial while seeking stronger ethics limits tied to the bill.
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What happened to the Digital Asset Clarity Act in the Senate?
The Senate blocked the bill 49-50 on Sept. 15, after Trump agreed to additional ethics limits.
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What other crypto measures did Newsom sign?
A separate measure addresses digital-asset money laundering and restitution for crypto scam losses. Another establishes a legal framework for seizing crypto assets from transnational criminal networks.
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