On March 28, 2025, California Assembly Bill 1052, originally introduced as the Money Transmission Act, underwent significant amendments focusing on Bitcoin and crypto investor protections.
The bill, now titled “Digital Assets,” aims to secure self-custody rights for California’s nearly 40 million residents.
The revised legislation prohibits public entities from restricting or taxing digital assets solely based on their use as payment, establishing that digital financial assets are valid forms of payment in private transactions. Additionally, the bill expands the California Political Reform Act of 1974, preventing public officials from engaging in transactions involving digital assets that could create conflicts of interest.
Assemblymember Avelino Valencia, chair of the Banking and Finance Committee, spearheaded the amendments to enhance protections for crypto investors. The bill is currently in the “desk process,” awaiting its first reading.
Currently, data from BTC Maps indicates that 99 merchants across California accept Bitcoin payments. Prominent crypto firms such as Ripple Labs, Solana Labs, and Kraken operate within the state, contributing to the growing landscape of digital assets.
This legislative push aligns with a broader national trend, as nearly 100 Bitcoin-related bills have been introduced at the state level across 35 states.
Recent developments include a Bitcoin strategic reserve bill passed by the Texas Senate and Kentucky’s signing of a Bitcoin Rights bill into law.
