California bans public officials from launching memecoins

California Governor Gavin Newsom has signed a new law limiting how elected officials in the state can use cryptocurrency for personal financial gain. Under the legislation, public officials are now barred from issuing memecoins — tokens based on internet jokes, trends or celebrities.

The Trump memecoin factor

The governor's office cited reports that roughly a million investors lost an estimated $3.8 billion after purchasing a memecoin launched by President Donald Trump in 2025 as a key reason behind the new restriction.

"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.

Third parties also covered

The law goes further by also prohibiting any company — whether connected to an official or not — from creating a memecoin that uses that official's "likeness or image."

Broader crypto crackdown

This is part of a wider set of crypto-related measures Newsom has recently signed. One new law establishes an official process to help victims of crypto fraud recover their funds, while another codifies procedures for seizing crypto assets tied to transnational criminal networks.

Beyond cryptocurrency, Newsom has also recently signed legislation addressing abusive "ghost ticket" sales practices, exploitation of online reservation systems for profit, and several new health care policies.