California's Newsom signs memecoin ban and calls it 'The Opposite of Trump'
Reported by CoinDesk · AI-assisted summary by ChikoCorp AI News Desk
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Summary
California Governor Gavin Newsom signed a law banning state public officials from issuing memecoins, defined as cryptocurrencies tied to personalities, internet jokes, or viral trends without a specific use case. The measure, AB 2409, was part of an 11-bill package focused on combating corruption, consumer protection, and cryptocurrency crime. Newsom framed the law as a rebuke of former President Donald Trump, whose $TRUMP token caused billions in losses for holders.
Why it matters
The source highlights the ban as a move to prevent public officials from profiting off their office and to protect consumers from scams associated with memecoins. Newsom's office positioned the measure as contrasting with the prior Trump administration’s alleged corruption and self-dealing related to the $TRUMP token. The source does not explicitly explain broader market or regulatory impacts.
Key context
The $TRUMP memecoin was launched three days before Trump’s 2025 inauguration and saw a rapid price surge to $75 before crashing, causing nearly one million buyers to lose a combined $3.81 billion. Trump's financial disclosures report earning $636 million in royalties from $TRUMP, with Trump Organization affiliates owning roughly 80% of the token's supply. The current status of existing memecoins under the new law, including whether it applies retroactively to $TRUMP, remains unclear.
Key numbers and entities
Key entities include California Governor Gavin Newsom, former President Donald Trump, and the $TRUMP token. Nearly 988,905 buyers lost $3.81 billion combined on $TRUMP, which had a market cap peak of $14 billion and currently trades at $2.03. Trump’s disclosed royalties from $TRUMP total $636 million, with about 80% of the supply owned by Trump Organization affiliates.
What remains unclear
The source does not clarify whether the ban applies to memecoins already in existence like $TRUMP, nor does it specify enforcement mechanisms or penalties for violations. It also does not provide any response from Donald Trump or his representatives regarding the new law or its implications.