CoinDesk
California Gov. Gavin Newsom signed AB 2409, barring state public officials from issuing memecoins. The measure is part of an 11-bill package addressing corruption, consumer protection and cryptocurrency crime. Newsom framed it as a rebuke of President Donald Trump and his $TRUMP token, with his office branding the announcement “The Opposite of Trump.”
Why it matters
The package also sets rules for repaying victims of crypto scams and creates a legal process to seize crypto from transnational criminal networks. Newsom said officials should not profit from their office. His statement accused Trump of self-dealing through the token; Trump’s office did not immediately respond to a request for comment.
The law’s reach over tokens already in circulation is unclear, including whether it covers $TRUMP. The source describes AB 2409 as barring officials from issuing memecoins, but does not establish how the measure applies to existing tokens.
Market impact
The source reports that $TRUMP rose from under $1 to $75 shortly after its launch, reaching a $14 billion market capitalization before a sharp crash. Nansen data cited in the report put buyer losses at $3.81 billion across 988,905 buyers. Trump’s financial disclosure listed $636 million in royalties, while Trump Organization affiliates own about 80% of the supply. The token was trading at $2.03 at the time of the report.
The law directly restricts California public officials, but its effect on existing political tokens remains unresolved. Newsom’s second and final term ends in January, and he is widely viewed as a potential 2028 presidential contender.
Frequently asked questions
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What does California’s AB 2409 prohibit?
The law bars California public officials from issuing memecoins.
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Is $TRUMP covered by the new California law?
The law’s application to existing tokens such as $TRUMP is unclear.
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What other measures were included in Newsom’s bill package?
The package includes rules for repaying crypto scam victims and a legal process to seize crypto from transnational criminal networks.
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How much did buyers reportedly lose on the $TRUMP token?
Nansen data cited in the report put combined losses at $3.81 billion among 988,905 buyers.
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What did the report say about Trump’s financial ties to $TRUMP?
Trump’s financial disclosure listed $636 million in royalties, and Trump Organization affiliates own about 80% of the supply.
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