A legislative proposal in California aims to guarantee the rights of Bitcoin holders and self-custody for 39.4 million residents.
On March 28, California Democratic Representative Avelino Valencia, chairman of the Banking and Finance Committee, amended Assembly Bill 1052, originally introduced on February 20 as the “Money Transmission Act.” The changes completely transformed the bill, removing references to money transmission and renaming it simply “Digital Assets.”
These amendments introduce various protections for Bitcoin and cryptocurrency investors, with a particular focus on the right to self-custody.
Bitcoin recognized as a legitimate payment method in California
One of the key aspects of the proposal is the recognition of digital assets as a valid and legal means of payment in transactions. Additionally, the bill would prohibit public entities from restricting or taxing digital assets solely based on their use as a payment method.
Dennis Porter, CEO of the Satoshi Action Fund, commented:
“California often sets the national policy model, and if ‘Bitcoin Rights’ pass here, they can pass anywhere. Once approved, this legislation will guarantee nearly 40 million Californians the right to self-custody their digital assets without fear of discrimination.”
Conflict of interest: new rules for public officials
The bill would also expand the scope of California’s Political Reform Act of 1974, prohibiting public officials from issuing, sponsoring, or promoting digital assets, securities, or commodities. “A public official shall not engage in any transaction or conduct related to a digital asset that creates a conflict of interest with their public duties,” states a section of AB 1052.
Currently, the bill is in the “desk process,” meaning it has been formally introduced and is awaiting its first reading.
This proposal is part of a broader trend of increasing legislative interest in Bitcoin across the United States. According to Bitcoin Laws, 95 Bitcoin-related bills have been introduced at the state level in 35 states, including 36 bills on Bitcoin strategic reserves still under discussion.
On March 24, Kentucky Governor Andy Beshear signed a law similar to the one proposed by Representative Valencia in California.
