Key Takeaways
- California amended AB 1052 to include Bitcoin self-custody rights.
- The bill would ban discrimination against using Bitcoin for private payments.
- It also restricts public officials from promoting digital assets that pose conflicts of interest.
California Assemblymember Avelino Valencia has amended a previously introduced money transmission bill to expand protections for Bitcoin and digital asset holders across the state’s population of 39.4 million.
Bill overview
Originally introduced on February 20 as the “Money Transmission Act,” Assembly Bill 1052 was renamed “Digital Assets” following amendments filed on March 28.
The revisions now explicitly guarantee the right to self-custody Bitcoin and digital assets, prohibit public entities from restricting or taxing their use in private transactions, and add guardrails for public officials interacting with digital assets.
Statement from Satoshi Action Fund
Dennis Porter, CEO of the Satoshi Action Fund, said:
Once passed, this legislation will guarantee nearly 40 million Californians the right to self-custody their digital assets without fear of discrimination.
Legal tender status
The bill would also establish digital assets as valid legal tender in private transactions and prevent government agencies from treating their use differently than traditional payment methods.
Conflict of interest provisions
Additionally, the bill expands California’s Political Reform Act of 1974 to ban public officials from promoting or engaging in digital asset activities that create conflicts of interest.
Current status
The legislation is now in the “desk process,” meaning it has been formally introduced and is awaiting its first reading.
Broader context
Bitcoin-focused legislation has gained traction in several U.S. states.
Kentucky recently passed a Bitcoin Rights bill on March 24, while Texas advanced a Bitcoin reserve measure on March 6.
California, home to major companies like Ripple, Solana Labs, and Kraken, now joins the growing list of states considering Bitcoin-specific protections.
