California Gov. Gavin Newsom (D) signed a new piece of legislation on Sunday to safeguard consumers and hold “cryptocurrency fraudsters” accountable.

‘For People, Not the Powerful’

The new laws prohibit California public officials from issuing meme coins and companies from listing any meme coin that “uses the likeness or image of a public official.” The Governor’s office described the move as the “opposite” of what President Donald Trump did with his Official Trump (CRYPTO: TRUMP) memecoin.

The legislation also targets fraud and money laundering, setting clear rules for compensating victims of cryptocurrency crimes. The laws set a legal process for seizing cryptocurrency assets from “transnational criminal networks.”

“While the scam that is Donald Trump continues to hurt American families, California is fighting to make our economy work for people, not the powerful,” Newsom said. “No official should profit off their office.”

The White House didn’t immediately return MarketDash’s request for comment.

The TRUMP Controversy

Nearly 1 million people lost money on the TRUMP memecoin, racking up $3.8 billion in losses through the end of June.

Interestingly, Trump collected $635 million in royalties from the same cryptocurrency last year, according to his latest financial disclosure.

The TRUMP memecoin reached a market capitalization of nearly $15 billion shortly after its launch, before collapsing 97% to $584 million as of this writing.

Negotiations over the CLARITY Act hit a major snag because of Trump’s cryptocurrency dealings.

A revised provision that would have given state attorneys general direct authority to enforce ethics restrictions on federal officials, including Trump, was added, but it failed to win Democratic support. The bill eventually fell short of the 60 votes needed to advance.

Price Action: As of this writing, TRUMP is down 1.20% in the last 24 hours to $2.07, according to market data.