California has revised its digital assets bill to include provisions for ‘Bitcoin rights.’
By amending a money transmission bill, California Democrat Avelino Valencia has placed greater emphasis on Bitcoin and crypto rights, potentially aiding 39.4 million residents in the state.
Seeking to protect crypto self-custody rights, a California lawmaker has revised a February money transmission bill to incorporate protections for Bitcoin and cryptocurrency investors.
On March 28, Avelino Valencia, a Democrat and chair of the Banking and Finance Committee, amended California’s Assembly Bill 1052—originally introduced as the Money Transmission Act on February 20, 2025—to include investor protections for Bitcoin and crypto.
The updated legislation no longer carries the name “Money Transmission Act” and now bears the title “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.
“Once passed, this legislation will guarantee nearly 40 million Californians the right to self-custody their digital assets without fear of discrimination.”
By passing this bill, lawmakers would legally recognize digital financial assets for private payments and would prohibit public entities from taxing or restricting them solely for use in transactions.
The legislation modifies California’s Political Reform Act of 1974, preventing public officials from launching, supporting, or promoting digital assets, securities, or commodities.
“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.
Now in the “desk process,” the Assembly has introduced AB 1052 and will conduct its first reading soon.
Currently, 99 California-based merchants accept Bitcoin transactions, according to BTC Maps.
Ripple Labs, Solana Labs, and Kraken are some of the major cryptocurrency firms headquartered in California.
On February 2, 2025, California lawmakers proposed a bill on stablecoins, setting standards for collateral backing, liquidation methods, redemption frameworks, settlement protocols, and security evaluations.
Across 35 states, lawmakers have proposed 95 Bitcoin-related bills, including 36 Bitcoin reserve bills still under review, according to Bitcoin Law.
On March 6, the Texas Senate passed a Bitcoin strategic reserve bill with a 25-5 vote. On March 24, Kentucky Governor Andy Beshear signed the Bitcoin Rights bill into law.
This month, U.S. President Donald Trump signed an executive order to establish a Strategic Bitcoin Reserve and a Digital Asset Stockpile, both starting with cryptocurrency seized from criminal proceedings.
