A California lawmaker has amended a key financial bill to include robust protections for Bitcoin and crypto investors, signaling a major step forward for digital asset rights in the U.S.’s most populous state.
Originally introduced on Feb. 20, 2025, as the “Money Transmission Act,” Assembly Bill 1052 was updated on March 28 by Democrat Avelino Valencia, chair of California’s Banking and Finance Committee. The amendments rename the legislation to “Digital Assets” and embed vital crypto-related provisions aimed at securing self-custody rights for nearly 40 million Californians.
The revised bill ensures the right of individuals to self-custody their digital assets—meaning they can hold their own cryptocurrencies without being forced to rely on third-party custodians. It also prohibits discrimination against digital assets in private transactions, formally recognizing them as legal forms of payment. Additionally, public agencies would be barred from taxing or restricting the use of digital assets solely based on their role in payments.
“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 in a statement on March 30. “Once passed, this legislation will guarantee nearly 40 million Californians the right to self-custody their digital assets without fear of discrimination.”
The bill also introduces strict rules under the state’s Political Reform Act of 1974. It bans public officials from promoting or transacting in digital assets in ways that might create conflicts of interest with their governmental duties.
AB 1052 is currently in the “desk process,” awaiting its first formal reading in the legislative cycle.
California is already home to major crypto players like Ripple Labs, Solana Labs, and Kraken. According to BTC Maps, 99 merchants across the state accept Bitcoin as a form of payment.
This move follows a wave of crypto legislation across the country. Texas and Kentucky recently passed Bitcoin reserve and rights bills, while President Trump signed an executive order creating a Strategic Bitcoin Reserve and Digital Asset Stockpile earlier in March.
