California Lawmaker Just Added Bitcoin and Crypto Investor Protections to a February-Introduced Money Transmission Bill

A Californian lawmaker has just added Bitcoin and crypto investor protections to a February-introduced money transmission bill aimed at securing crypto self-custody rights

A Californian lawmaker has just added Bitcoin and crypto investor protections to a February-introduced money transmission bill aimed at securing crypto self-custody rights for the US state’s nearly 40 million residents.

California’s Assembly Bill 1052 was introduced as the Money Transmission Act on Feb. 20, 2025, but was amended by Democrat and Banking and Finance Committee chair Avelino Valencia on March 28 to include several Bitcoin (BTC) and crypto-related investor protections.

The amendments cross out “Money Transmission Act,” with the legislation now called “Digital assets.”

"California often sets the national blueprint for policy, and if Bitcoin Rights passes here, it can pass anywhere," Satoshi Action Fund CEO Dennis Porter said in a March 30 statement.

The bill would also deem the use of a digital financial asset as a valid and legal form of payment in private transactions and would prohibit public entities from restricting or taxing digital assets solely based on their use as payment.

The bill would further expand the scope of California’s Political Reform Act of 1974 to prohibit a public official from issuing, sponsoring or promoting a digital asset, security or commodity.

"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," one section of the AB 1052 states.

AB 1052 is now in the "desk process" — meaning the bill has been formally introduced and is awaiting its first reading.

A total of 99 merchants currently accept Bitcoin payments in California, BTC Maps data shows.

Ripple Labs, Solana Labs and Kraken are among the largest crypto firms based in California.

A stablecoin-related bill was also introduced in California on Feb. 2, 2025, which aims to provide more clarity over stablecoin collateral requirements, liquidation processes, redemption and settlement mechanisms requisites and security audits.

According to Bitcoin Law, 95 Bitcoin-related bills or measures have been tabled at the state level in 35 states, including 36 Bitcoin reserve bills that are still live.

The Texas Senate passed a Bitcoin strategic reserve bill in a 25-5 vote on March 6, while Kentucky Governor Andy Beshear signed a Bitcoin Rights bill into law on March 24.

Earlier this month, U.S. President Donald Trump signed an executive order to create a Strategic Bitcoin Reserve and a Digital Asset Stockpile, both of which will initially use cryptocurrency forfeited in government criminal cases.