California Amends Digital Assets Bill to Include Bitcoin Rights for 39.4 Million Residents
California Democrat Avelino Valencia has amended a money transmission bill to focus on Bitcoin and cryptocurrency rights. The changes could benefit the state's 39.4 million residents by securing crypto self-custody rights and other protections.
Assembly Bill 1052 was introduced on February 20, 2025, as the Money Transmission Act. On March 28, Valencia, who chairs the Banking and Finance Committee, amended the bill to include several Bitcoin and crypto-related investor protections.
The legislation has been renamed from "Money Transmission Act" to "Digital Assets." The bill would recognize digital financial assets as valid forms of payment in private transactions and prevent public entities from restricting or taxing digital assets solely based on their use as payment.
"California often sets the national blueprint for policy, and if Bitcoin Rights passes here, it can pass anywhere," said Satoshi Action Fund CEO Dennis Porter on March 30.
The bill would also modify California's Political Reform Act of 1974 to prohibit public officials from issuing, sponsoring, or promoting digital assets. It states that "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."
Currently, AB 1052 is in the "desk process" stage, meaning it has been formally introduced and awaits its first reading. According to BTC Maps data, 99 merchants in California currently accept Bitcoin payments.
The state is home to major crypto companies including:
- Ripple Labs
- Solana Labs
- Kraken
A separate stablecoin-related bill was introduced in California on February 2, 2025. It aims to provide clarity on stablecoin collateral requirements, liquidation processes, redemption mechanisms, and security audit requirements.
At the U.S. state level, 95 Bitcoin-related bills or measures have been introduced across 35 states, with 36 Bitcoin reserve bills still active. Texas passed a Bitcoin strategic reserve bill on March 6, while Kentucky signed a Bitcoin Rights bill into law on March 24.
Earlier this month, President Donald Trump signed an executive order creating a Strategic Bitcoin Reserve and Digital Asset Stockpile, which will initially use cryptocurrency seized in government criminal cases.
The regulatory landscape for cryptocurrency is shifting rapidly across states. South Carolina recently dismissed its lawsuit against Coinbase regarding staking services, joining Vermont in dropping legal action that had accused the exchange of offering unregistered securities. This move comes as South Carolina Representative Jordan Pace introduced a bill that would allow the state treasurer to allocate up to 10% of certain state funds to cryptocurrencies.
