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

California has taken a major step toward securing Bitcoin and cryptocurrency rights with an amendment to Assembly Bill 1052.

Originally introduced as the Money Transmission Act on February 20, 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 is now titled “Digital Assets” and grants nearly 40 million Californians the right to self-custody of their Bitcoin (BTC) and other digital currencies without discrimination.

“California often sets the national blueprint for policy, and if Bitcoin Rights passes here, it can pass anywhere. We're also setting up a crucial battleground in the heart of the deep state,” said Dennis Porter, CEO of Satoshi Action Fund, regarding the bill’s broader implications.

The amended bill also makes digital assets a valid and legal form of payment for private transactions. Public entities would be banned from restricting or taxing digital assets solely based on their use as payment.

Moreover, the bill establishes a clear framework for handling unclaimed digital assets, ensuring they are safeguarded by licensed custodians rather than lost in legal uncertainty.

California's 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 reads:

“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 now in the “desk process”, which means 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 shows that 99 merchants in California accept Bitcoin as payment. The state is also home to some of the largest crypto firms, including Ripple Labs, Solana Labs, and Kraken, who would benefit from clearer legal guidelines.

Texas 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 governor's signature.

If signed, Texas would become the first U.S. state to establish a digital asset strategic reserve.

Kentucky Governor Andy Beshear also signed a Bitcoin Rights bill into law on March 24, reinforcing the growing state-level momentum for digital asset protections.

On the federal level, earlier 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, 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 U.S., 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, California's AB 1052 could play a crucial role in shaping national policy.