The state has adopted several new rules regarding cryptocurrencies.
California Governor Gavin Newsom has signed a law aimed at restricting how elected leaders can mine crypto for personal gain. State officials are not allowed to issue memecoins, a form of cryptocurrency based on jokes, trends or online celebrities. The governor’s office pointed to reports that about a million investors lost $3.8 billion on their purchases of memecoin released by President Donald Trump in 2025 as the motivation behind the new rule.
“No official should take advantage of their mandate – and we are putting in place stronger protections to ensure that does not happen in our state,” Newsom said. The bill also prohibits a company, related or unrelated, from creating a memecoin using the “likeness or image” of a public official.
The governor’s other recent legislative actions created formal processes to help crypto fraud victims get their money back and codified an approach to seizing crypto assets from transnational criminal networks. Aside from this topic, Newsom also signed bills on topics ranging from the abuse of “ghost ticket” sales, to the exploitation of online reservation systems for profit and several new health care-related policies.
