California bans its politicians from launching memecoins
Summary
California Governor Gavin Newsom signed AB 2409, banning state public officials from issuing memecoins. The measure was part of a package of 11 laws addressing corruption and consumer protection, including provisions on reimbursing crypto scam victims and seizing crypto linked to transnational criminal networks. Newsom framed the ban as a response to alleged profiteering by President Donald Trump through his $TRUMP token. It remains unclear whether the law applies to existing tokens. The article reports that $TRUMP surged to a $14 billion market capitalization shortly after launch before collapsing; Nansen data puts buyers’ combined losses at $3.81 billion, while Trump’s disclosure lists $636 million in royalties.
