California Pushes Bitcoin Rights to the Frontline

California’s “Bitcoin Rights” bill secures self-custody for digital assets, shields crypto payments from penalties, and protects 40 million Americans’ financial freedom in the digital age.

California lawmakers have taken a significant step toward advancing cryptocurrency rights in the state with the filing of AB-1052, also known as the “Bitcoin Rights” bill. The bill, which was introduced by Assemblymember Juan Carrillo Valencia, seeks to grant individuals the right to self-custody bitcoin and other digital assets. It also aims to shield crypto payments from penalties and create a framework for handling unclaimed digital property.

The bill's introduction was confirmed by the nonprofit Satoshi Action Fund, which has been instrumental in pushing for bitcoin and digital asset legislation at both the state and federal levels.

“The Chair of Banking and Finance – Assemblyman Valencia – has introduced ‘Bitcoin Rights' in the California Assembly. Once passed, nearly 40 million Americans will have their right to self-custody protected!” the group announced on X, formerly Twitter, on Wednesday.

The bill, which is titled An Act to amend Section 1506 of the Civil Code, Section 12808 of the Government Code, and Section 91030 of the Health and Safety Code, is an amalgam of provisions intended to strengthen protections for digital asset users.

Among its key provisions, the bill explicitly affirms the right to self-custody bitcoin and other digital assets, and it bars public agencies from imposing taxes or restrictions solely based on asset use in payments.

A separate section of the bill establishes a legal process for handling unclaimed digital property, ensuring such assets are secured by licensed custodians instead of being left in administrative uncertainty.

The proposed legislation also seeks to modify the Political Reform Act of 1974 to prohibit public officials from issuing, sponsoring, or promoting any digital asset, security, or commodity—an effort to separate political influence from emerging financial technologies.

The bill's supporters say it sets an important precedent in defending property rights in the digital age.

“This is a crucial step forward in securing property rights and financial freedom for the 40 million people of California,” said Dennis Porter, CEO and co-founder of the nonprofit advocacy organization Satoshi Action Fund.

“We must ensure that innovative technologies like bitcoin and other digital assets remain accessible to individuals and businesses in the Golden State.”

Advocates suggest that the bill could serve as a legislative template for other jurisdictions. They argue that California's adoption of AB-1052 may catalyze national conversations around the optimal regulatory infrastructure for digital assets, prompting other states to pursue comparable measures.