California is taking significant steps in protecting cryptocurrency investors by introducing amendments to a bill that will ensure crypto self-custody rights.
Amendments to Bill 1052
First introduced on February 20, 2025, as the Money Transmission Act, Bill 1052 was amended on March 28, 2025, by Democrat Avelino Valencia, chairperson of the Banking and Finance Committee, to include protections for Bitcoin and cryptocurrency investors. These amendments replace 'Money Transmission Act' with 'Digital Assets.'
Expanding Crypto Payment Rights
The bill states that using a digital financial asset as payment is legal and valid in private transactions. Public organizations cannot limit or tax digital assets merely because they are used for payment. It also prohibits public officials in California from engaging in activities related to digital assets if those activities create a conflict with their public duties.
Situation in Other US States
Besides California, other states are also considering Bitcoin-related measures. According to Bitcoin Law, approximately 95 Bitcoin-related bills have been introduced in 35 states, with around 36 Bitcoin reserve bills being actively considered. For example, the Texas Senate passed a Bitcoin strategic reserve bill, and Kentucky signed a bill into law for Bitcoin rights.
California's initiatives to protect cryptocurrency holders' rights could set a precedent for other states, with the growing number of Bitcoin-related bills nationwide highlighting cryptocurrencies' impact on policy and economics.
