California Governor Gavin Newsom has signed legislation restricting public officials from issuing memecoins, a form of cryptocurrency based on online jokes, trends, or celebrities. The move comes amid reports that about a million investors lost an alleged $3.8 billion on the memecoin released by President Donald Trump in 2025. "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.

The bill also prohibits companies from creating memecoins using "the likeness or image" of a public official. The governor's office cited concerns about officials leveraging their position for personal financial gain.

In addition to the memecoin restrictions, Newsom has signed bills creating processes for helping crypto fraud victims recoup their money and codifying approaches for seizing crypto assets from transnational criminal networks. The legislation is part of broader efforts to regulate cryptocurrency activities in California.