Key Takeaways:
- California’s revised Assembly Bill 1052, now titled “Digital Assets,” introduces protections for Bitcoin users, including legal recognition of digital assets and self-custody rights.
- The bill prohibits public entities from taxing or restricting digital asset payments and restricts public officials from engaging in conflicted crypto activities.
- Seen as a potential model for national policy, the legislation is currently awaiting its first reading in the California State Assembly.
California Assemblymember Avelino Valencia has updated Assembly Bill 1052 to focus on digital asset protections, renaming it from the “Money Transmission Act” to “Digital Assets.”
The bill, introduced on February 20, 2025, and amended on March 28, seeks to enshrine “Bitcoin Rights” for Californians.
We are proud to officially announce that ‘Bitcoin Rights’ has been introduced in the California Assembly by the Chair of Banking and Finance – Assemblyman Valencia.
— Satoshi Action Fund (@SatoshiActFund) March 29, 2025
Once passed, nearly 40 million Americans will have their right to self-custody protected!
The bill also creates… pic.twitter.com/zvLwCM46je
Key provisions include the legal recognition of digital assets in private transactions and a ban on public entities restricting or taxing their use for payments.
The legislation also guarantees the right to self-custody, enabling individuals to control their own cryptocurrencies without facing discrimination.
The bill has garnered support from the Satoshi Action Fund, whose CEO, Dennis Porter, emphasized California’s influence on national policy.
The proposal also amends the Political Reform Act of 1974, preventing public officials from promoting or engaging in digital asset dealings that could create conflicts of interest.
Currently, the bill is in the “desk process,” awaiting its first reading in the State Assembly.
California is a prominent crypto hub, home to firms like Ripple, Solana Labs, and Kraken, and hosts 99 Bitcoin-accepting merchants.
In a related move, state lawmakers have also proposed a stablecoin-focused bill to address regulatory clarity around reserves and redemptions.
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Efe Bravo, a seasoned journalist, delivers compelling insights into the cryptocurrency and blockchain industry.
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