California Governor Gavin Newsom has signed legislation that restricts public officials and companies from issuing memecoins, a type of cryptocurrency based on jokes, trends or celebrities. The legislation was prompted by reports that approximately one million investors lost an alleged $3.8 billion on President Donald Trump's memecoin released in 2025. Newsom stated that "no official should profit off their office" and that the state is implementing stronger protections to prevent such activity.

The new rules prohibit not only public officials from issuing memecoins, but also any company from creating memecoins using an official's likeness or image. The legislation is part of a broader set of crypto-related measures signed by Newsom, which also include establishing official processes to help crypto fraud victims recover their money and creating mechanisms for seizing cryptocurrency assets from transnational criminal networks.