California Amends AB 1052 to Secure Bitcoin and Crypto Self-Custody Rights
- Californias AB 1052 grants 40 million residents the right to self-custody digital assets freely.
- The bill prohibits taxing or restricting digital assets as payment and protects unclaimed assets.
- 99 California merchants accept Bitcoin, with major crypto firms like Ripple and Kraken benefiting.
California has taken a major step toward securing Bitcoin and cryptocurrency rights by amending its Assembly Bill 1052. Originally introduced as the Money Transmission Act on February 20, 2025, the bill was revised on March 28 by Democrat Avelino Valencia, chair of the Banking and Finance Committee, to include key investor protections.
The legislation now carries the title Digital Assets and aims to grant nearly 40 million Californians the right to self-custody of their Bitcoin and other digital currencies without facing discrimination. Dennis Porter, CEO of Satoshi Action Fund, highlighted Bitcoin Rights national potential, noting, California often sets the national blueprint for policy, and if Bitcoin Rights passes here, it can pass anywhere.
If passed, the law would also make digital assets a valid and legal form of payment for private transactions. Public entities would be prohibited from restricting or taxing digital assets solely based on their use as payment. The bill further establishes a clear framework for handling unclaimed digital assets, ensuring they are safeguarded by licensed custodians rather than lost in legal uncertainty.
Regulating Digital Assets in Politics and Commerce
Californias Political Reform Act of 1974 will also be expanded under AB 1052 to prohibit public officials from promoting, issuing, or sponsoring digital assets, securities, or commodities. A section of the bill states: A public official shall not engage in any transaction or conduct related to a digital asset that creates a conflict of interest with their public duties.
The bill is currently in the desk process, meaning it has been formally introduced and is awaiting its first reading. If enacted, it could set a precedent for other states considering similar cryptocurrency regulations.
Data from BTC Maps indicates that 99 merchants in California already accept Bitcoin as payment, and the state is home to some of the largest crypto firms, including Ripple Labs, Solana Labs, and Kraken. These companies stand to benefit from clearer legal guidelines surrounding digital asset transactions.
A Nationwide Shift Toward Bitcoin Rights
California isnt alone in its push for crypto regulation. Texas, for example, recently passed a Bitcoin strategic reserve bill in the Senate with a 25-5 vote on March 6. The bill, known as SB-21, still requires the governors signature, but if signed into law, Texas would become the first U.S. state to establish a digital asset strategic reserve.
Similarly, Kentucky Governor Andy Beshear signed a Bitcoin Rights bill into law on March 24, reinforcing the growing state-level momentum for digital asset protections. Meanwhile, the federal government is also taking actionearlier this month, U.S. President Donald Trump signed an executive order to create both a Strategic Bitcoin Reserve and a Digital Asset Stockpile.
California is also considering additional cryptocurrency legislation. A stablecoin-related bill, introduced on February 2, 2025, aims to establish clear guidelines for collateral requirements, liquidation processes, redemption and settlement mechanisms, and security audits for stablecoin issuers. This is part of a broader effort to regulate the growing digital asset industry.
Across the United States, 95 Bitcoin-related bills have been introduced at the state level in 35 states, including 36 Bitcoin reserve bills that remain active. As more states move toward legal recognition and regulation of digital assets, Californias AB 1052 could play a crucial role in shaping national policy.
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Text source: TronWeekly
