Newsomean: California Governor Signs "Opposite of Trump" Law, Bans Lawmaker Memecoins 🪙

California Governor Gavin Newsom on Sunday signed Assembly Bill 2409, barring state and local public officials from issuing memecoins and prohibiting digital asset service providers from offering certain political tokens to California residents. The bill, authored by Assembly Member Avelino Valencia (D-Anaheim), was introduced on Feb. 20, 2026, and applies to tokens issued on or after Jan. 1, 2027. Newsom's office titled the announcement "THE OPPOSITE OF TRUMP," directly criticizing President Donald Trump's crypto ventures and accusing the administration of corruption and self-dealing. "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 said Sunday.

AB 2409 adds a memecoin prohibition to the California Government Code, supplementing existing rules that bar state officers and employees from engaging in activity inconsistent with their duties. The law defines a memecoin as a digital asset marketed based on its association with internet memes, characters, current events or trends, whose value derives primarily from public interest, speculation or community engagement. It authorizes California's attorney general, a district attorney, a city attorney or county counsel to enforce the restrictions through civil action, including injunctions and disgorgement of funds. The exchange-listing restriction targets tokens offered by or in partnership with a federal, state or local public official.

Newsom also signed Senate Bill 1208, which expands California's existing money laundering statutes to include illicit transactions made using digital assets and authorizes law enforcement to freeze, seize and forfeit digital assets linked to crimes. The 11-bill package he signed Sunday addressed corruption, consumer protection and cryptocurrency crime, including measures setting rules for paying back crypto scam victims and creating a legal process to seize crypto from transnational criminal networks.

Newsom's announcement comes amid scrutiny of Trump's memecoin activities. Trump launched $TRUMP three days before his early 2025 inauguration, with the token's price rising from under $1 to $75 within a day or two and pushing its market capitalization to $14 billion before crashing. Data tracked by Nansen shows 988,905 buyers lost a combined $3.81 billion. Trump's financial disclosure lists $636 million in royalties from the coin, with Trump Organization affiliates owning about 80% of the supply, and his broader disclosure included more than $1.2 billion in crypto-related earnings. As of CoinDesk's writing, $TRUMP traded at $2.03. Trump's office did not immediately respond to CoinDesk's request for comment.

In July, U.S. Senator Kirsten Gillibrand (D-NY) renewed calls for federal legislation prohibiting politicians and their spouses from issuing or promoting digital assets, including memecoins. Newsom, whose second and final term ends in January, is widely viewed as a 2028 presidential contender.