A California lawmaker has just added Bitcoin and crypto investor protections to a money transmission bill first introduced in February, marking a potentially historic step toward securing self-custody rights for nearly 40 million residents of the Golden State.
Assembly Bill 1052, originally known as the Money Transmission Act, was introduced on February 20, 2025. But on March 28, Democrat and Banking and Finance Committee Chair Avelino Valencia amended the bill to include several critical crypto-specific protections, leading lawmakers to rebrand the legislation under a new title: “Digital Assets.”
The updated bill doesn’t just tweak language, it shifts the legal terrain. Among the key changes:
- Grants Californians the right to self-custody digital assets, including Bitcoin, without fear of discrimination.
- Recognizes digital assets as valid private payment methods, banning restrictions or taxes based solely on their usage.
- Expands the Political Reform Act of 1974, prohibiting public officials from promoting or transacting in digital assets that conflict with their duties.
“California often sets the national blueprint for policy, and if Bitcoin Rights passes here, it can pass anywhere,” said Dennis Porter, CEO of Satoshi Action Fund, 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.”
From Silicon Valley startups to main street merchants, California is already a crypto hub. Ripple Labs, Solana Labs, and Kraken all call the state home. Meanwhile, 99 merchants across California currently accept Bitcoin payments, according to BTC Maps.
With AB 1052 now in the “desk process”, formally introduced and awaiting its first reading, the crypto industry is eyeing it as a milestone in the fight for financial freedom.
The Larger Trend: State-Level Momentum Builds
California’s move is part of a broader trend sweeping through U.S. state legislatures. According to Bitcoin Law, 95 Bitcoin-related bills or measures have been introduced across 35 states, with 36 “Bitcoin reserve” bills still under consideration.
Some notable developments:
- Texas passed a Bitcoin reserve bill in the state Senate on March 6.
- Kentucky Governor Andy Beshear signed a Bitcoin Rights bill into law on March 24.
- President Donald Trump issued an executive order this month to establish a Strategic Bitcoin Reserve and a Digital Asset Stockpile, both backed by cryptocurrency assets seized from federal criminal cases.
And on February 2, California introduced a stablecoin-focused bill aimed at creating standards for collateral, liquidation, and audit mechanisms—signaling a comprehensive approach to digital asset regulation.
A Turning Point for Crypto Legislation in the U.S.
By embedding self-custody and anti-discrimination protections into law, California isn’t just adapting to the digital economy, it’s helping to shape it. With AB 1052 now positioned to define the rights of crypto users at the state level, the rest of the country and the world may soon follow suit.
