California Governor Gavin Newsom signed Assembly Bill 2409 (AB 2409) into law in the United States on September 27, banning California public officials from issuing meme coins—i.e., cryptocurrencies with no real use, whose prices are propped up purely by hype.
In a press release from his state government, he also directly named the “TRUMP” coin issued by U.S. President Trump, saying: “No official should profit from their position.”
According to data compiled by on-chain analytics firm Nansen through the end of June this year, there are 1.48 million wallets that have bought TRUMP coins. Of these, 988,905 exited at a loss, for a total loss of $3.81 billion—equivalent to roughly NT$120 billion. Meanwhile, the price of TRUMP coins is down about 97% from its peak.
As for Trump himself, according to his asset declarations, just from Trump Coins, his income since 2025 is already $63.6 million; and in addition, there’s his family’s crypto project, World Liberty Financial, with crypto-related income exceeding $1.4 billion.
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This bill sounds like it’s aimed at Trump, but when you actually open the text, its binding power is actually limited:
The ban on issuing coins only covers California’s state and local public officials; it can’t reach Trump.
Platforms may not list meme coins issued by officials for California residents. This also includes federal officials, but it only applies to coins issued after 2027.
People who violate the law won’t be jailed; they’ll only be required to stop issuing coins and hand back the profits.
In other words, the already-issued Trump Coins are unaffected, and those 988,000 loss-making wallets won’t get back a single cent because of this law.
Are there other laws that can help them get their money back?
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On the same day, Newsom also signed Bill No. 1208 (SB 1208) to address money laundering involving digital assets. The text says that after prosecutors seize the cryptocurrencies from the scam ring, they can apply for forfeiture within 180 days; victims then have 30 days to file for compensation, and the money is returned proportionally according to actual losses.
But the only people this law can help are those who were “scammed.” You bought a coin issued by a celebrity, watched it plummet with your own eyes, and since that isn’t itself a crime, it doesn’t fall within the scope for seeking compensation.
So, buying a celebrity-issued coin and losing money means the law can hardly help at all. I think that later, when you see political figures or celebrities putting their names on coins, before you ask how much it’s gone up, you should first ask yourself two things:
Who is the issuer—how much do they personally hold?
If the price crashes, do you have a way to absorb the losses?
Have you ever bought coins issued by celebrities or political figures? Did you check who issued them back then?
Feel free to share with me~
⚠️ The above is for reference only and does not constitute any investment advice.