California Democrat Avelino Valencia has amended a money transmission bill focusing on Bitcoin and cryptocurrency rights. This move could secure crypto self-custody rights for 39.4 million state residents.
Changes in the Bill
Assembly Bill 1052, originally introduced on February 20, 2025, as the Money Transmission Act, was amended by Banking and Finance Committee Chair Avelino Valencia on March 28. The amendments focus on recognizing digital financial assets as valid forms of payment in private transactions and preventing public entities from restricting or taxing digital assets solely based on their use as payment.
Impact of the Bill
The legislation has been renamed to 'Digital Assets.' It also modifies California's Political Reform Act of 1974 to prohibit public officials from engaging in any transactions or conduct related to digital assets that create a conflict of interest with their public duties. Currently, AB 1052 is in the 'desk process' stage, meaning it has been formally introduced and awaits its first reading. According to BTC Maps data, 99 merchants in California currently accept Bitcoin payments.
Other Crypto Initiatives in the U.S.
The regulatory landscape for cryptocurrency is rapidly changing across the U.S. Texas passed a Bitcoin strategic reserve bill on March 6, and Kentucky signed a Bitcoin Rights bill into law on March 24. Earlier this month, President Donald Trump signed an executive order creating a Strategic Bitcoin Reserve and Digital Asset Stockpile, initially using cryptocurrency seized in government criminal cases. In 35 U.S. states, 95 Bitcoin-related bills or measures have been introduced, with 36 remaining active.
California's legislative changes regarding digital assets could set a national standard for crypto regulation. If Bitcoin rights are recognized in California, it may influence other states' policies.
