CA Assembly May Soon Become a Legal Benchmark for the Rights of Bitcoin and Cryptocurrency Users

The state of California, known for leading technological and social trends, may soon become a legal benchmark for the rights of Bitcoin and cryptocurrency users.

output: Members of the California State Assembly are advancing a comprehensive bill that would grant sweeping rights to Bitcoin and cryptocurrency users, potentially setting a new standard for digital asset protection in the U.S.

Assemblymember Avelino Valencia, Chair of the Banking and Finance Committee, has substantially revised Bill AB 1052—initially introduced in February 2025—to prioritize digital asset rights. The bill, now titled “Digital Assets,” aims to ensure that California residents can self-custody their crypto assets without any state intervention or discrimination.

This move would drastically alter the legal landscape, allowing citizens to engage in the crypto economy on their own terms and without undue administrative burdens. In contrast, several U.S. states have introduced legislation this year to restrict or limit the use of cryptocurrencies.

Assembly Bill 1053: A Comprehensive Look at California's Crypto Push

Assembly Bill 1052, also known as AB 1052, delves deep into the realm of digital assets, aiming to provide a comprehensive legal framework for their use and protection. Here's a breakdown of the bill's key provisions:

* No State-Imposed Taxes or Fees: Public entities would be prohibited from imposing taxes, fees, or administrative costs on any person or entity based solely on their use of digital assets. This ensures a level playing field for crypto users.

* Private Transactions Remain Untouched: The state government is barred from legislating in any manner that would interfere with the private use of digital assets for any transaction. This provision respects individual autonomy in financial decisions.

* No Public Entity Can Restrict Digital Asset Use: No state agency, county, or city may enact any ordinance or resolution that has the effect of limiting or prohibiting the use of digital assets as a form of payment.

* Equal Treatment in Goods and Services Provision: Public entities, in the performance of their duties, would be required to treat digital assets no less favorably than other forms of payment. This includes providing goods and services in accordance with state and federal law.

* Assembly Bill 1052 also amends the Political Reform Act of 1974 to prohibit public officials from engaging in any operation of digital assets that could create a conflict of interest with their public duties. This clause, crucial for maintaining ethical conduct, is included in the bill.

Assembly Bill 1052 aims to create a legal environment where digital assets are fully integrated into the economic and political fabric of California, setting a precedent for other U.S. states to follow. With major players like Ripple Labs, Solana, and Kraken based in the state, this bill would not only protect users but would also position California as a key hub for decentralized financial innovation in the U.S.